GREENWICH, Connecticut and STOCKHOLM, Dec. 19, 2014 /PRNewswire/ -- Starwood Capital Group, a leading global private investment firm, and SveaReal Fastigheter AB, a major Swedish real estate firm, jointly announced today that the two parties have signed an agreement whereby a controlled affiliate of Starwood Global Opportunity Fund X plans to acquire SveaReal Fastigheter. The proposed transaction is subject to approval by SveaReal Fastigheter's shareholders.
In conjunction with a related transaction whereby Starwood Capital is also acquiring DNB NOR Eiendomsinvest I ASA in Norway, the overall deal—valued at approximately 11B Norwegian kroner (US$1.49B)—will be the single largest property transaction in Scandinavia this year.
The acquisition includes a collection of 79 properties in Sweden, consisting of office (49% of the portfolio), logistics/industrial (37%), hotel (7%), retail (6%) and other (1%) assets totaling 838K square meters (9.020M square feet) of gross leasable area, as well as SveaReal Fastigheter's management platform. Closing of the transaction is expected to take place in January 2015, following a meeting of SveaReal Fastigheter's general shareholders and approval by the Swedish competition authority.
The transaction follows Starwood Capital Group's November 2013 acquisition, through a controlled affiliate, of seven retail parks and shopping gallerias in Sweden from Kooperativa Forbundet (KF), owner of the country's second-largest supermarket chain, Coop.
"Following our successful entry into Sweden last year, we are now pleased to expand our Swedish portfolio with such a strong platform of diverse assets," said Zsolt Kohalmi, Head of European Acquisitions at Starwood Capital Group. "Sweden's economy has been resilient since the recession and continues to be one of the best performers in Europe, with over 2% GDP growth expected in 2015. In addition, top population growth metrics coupled with low vacancy rates provide a strong underpinning for the local real estate market."
The SveaReal Fastigheter portfolio is currently 91% occupied, with the majority (56%) centered around the Greater Stockholm area.
"We look forward to further increasing our presence in the Scandinavian markets as opportunities emerge," added Mr. Kohalmi.
About Starwood Capital Group
Starwood Capital Group is a private investment firm with a core focus on global real estate. Headquartered in Greenwich, CT, the Firm maintains 12 offices in six countries around the world. Starwood Capital Group has raised more than $30 billion of equity capital since its inception in 1991, and currently manages over $38 billion in assets. The Firm has invested in virtually every class of real estate on a global basis, opportunistically shifting geographies and changing positions in the capital stack as risk-reward dynamics evolve. For more than two decades, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises around real estate portfolios in both the private and public markets. Additional information can be found at starwoodcapital.com.
About SveaReal Fastigheter AB
SveaReal Fastigheter AB owns and develops primarily office, warehouse and logistics properties in growth regions throughout central and southern Sweden. The property portfolio comprises 79 properties with a total floor space of 838,000 square meters. The company has offices in Gothenburg, Malmö and Stockholm. SveaReal Fastigheter's shareholders consist primarily of Norwegian institutional capital investors, private companies and individuals.
SOURCE Starwood Capital Group