In a significant transaction underscoring the dynamism of the Swedish real estate market, Union Investment has divested the iconic Stockholm office building, Sthlm Hub, also known as Uggleborg 14, to Vasakronan for approximately €62 million. This strategic sale marks a milestone in Union Investment’s portfolio management strategy, with the purchase price exceeding the property’s most recent valuation. Vasakronan, backed by four of Sweden’s national pension funds and already a key player in the region, solidifies its presence in Stockholm’s prime commercial landscape with this acquisition.
Originally constructed in 1967 and subject to extensive modernization in 2016, Sthlm Hub has been a prized asset within the UniImmo: Global open-ended real estate fund’s portfolio since 2017. Its strategic location within Stockholm’s bustling city center, proximate to the central railway station, positions it as a coveted asset in one of the most sought-after office precincts in the Swedish capital. With superb connectivity and a plethora of urban amenities in its vicinity, including gastronomic offerings, retail establishments, and service outlets, Sthlm Hub epitomizes the essence of prime urban real estate.
The office property boasts a lettable area spanning approximately 5,900 square meters, with an impressive occupancy rate of 86% at present. Notably, the property holds a prestigious BREEAM in-Use Excellent certification, underscoring its commitment to sustainability and environmental stewardship—a crucial factor in today’s discerning real estate market. Beyond its physical attributes, Sthlm Hub embodies the spirit of modernity and innovation, offering tenants a conducive environment for productivity and growth.
Union Investment’s decision to part ways with Sthlm Hub reflects its strategic approach to portfolio optimization and capital deployment. The divestment process was facilitated by JLL and Linklaters Stockholm, renowned leaders in real estate advisory and legal counsel, respectively. Their expertise and guidance ensured a seamless transaction, further enhancing Union Investment’s reputation as a discerning investor in the global real estate arena.
As Vasakronan assumes ownership of Sthlm Hub, the company solidifies its position as a leading player in Sweden’s commercial real estate landscape. With a commitment to sustainability, innovation, and tenant satisfaction, Vasakronan is poised to leverage Sthlm Hub’s strategic location and premium amenities to deliver exceptional value to its stakeholders. The acquisition aligns with Vasakronan’s overarching vision of creating vibrant, sustainable urban environments that enrich the lives of occupants and contribute to the overall prosperity of the community.
Looking ahead, the successful sale of Sthlm Hub underscores the resilience and attractiveness of Stockholm’s commercial property market. With robust demand for prime office space and a thriving economy driving investment activity, the city remains a magnet for global investors seeking stable, long-term returns. As Stockholm continues to evolve as a leading business and cultural hub, strategic investments in premium assets like Sthlm Hub are poised to deliver enduring value and shape the city’s urban landscape for generations to come.
