The First and Second Swedish National Pension Funds of Sweden have revealed the new name for their direct European property company and have announced who is to run it.
AP1 and AP2 said their new €500 million joint venture – which they first revealed in March – would be called Cityhold Property. They also unveiled former managing director of CLS Holdings plc, Per Sjöberg, has become managing director of the new company.
AP1 and AP2 already have large real estate holdings in Sweden, but have formed Cityhold to focus on stable European property investments in other main cities, chiefly London and Paris to begin with. The company is being advised by Swedish property advisor Catella Property Group, and has hired Rickard Backlund, the former chief executive officer of Aberdeen Property Investors as its chairman.
Cityhold Property’s other senior personnel comprise Andrew Smith, Sir Julian Berney, Christophe Murciani, and Robb Simpson who will work out of offices in London and Paris. The company is also looking to hire real estate professionals to focus on the German market, it said.
Sjöberg ran London-listed property investment company CLS Holdings Plc for three years between 2005 and 2008, then left to form his own company, Reiton AB. He said: “I am very proud to have been appointed to build up a diversified property portfolio with stable cash flows on behalf of the First and Second Swedish National Pension Funds.” Cityhold will put total equity of €500 million to work. It says it can invest in assets with a “solid return relative to the level of risk”.
“As long-term investors, this presents us with a promising opportunity to complement our other real estate investments in Sweden and elsewhere with a number of well chosen properties in Europe. This offers a rapid and cost-efficient means of building up a real estate company through its investments.”