CLOSEUP Lennart Sten has gone from the chimneystack to the MD’s chair

MACROANALYSIS Dark clouds in the Swedish economic sky

VASAKRONAN Europe’s largest deal of the year so far was in Sweden Establish in the Göteborg Region

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The most interesting Expo Real for many years

All kinds of things can change extremely quickly. A football match can move from defeat to victory in just a couple of minu- tes, the weather can change from sunshine to thunderstorm in a moment, and life can take an unexpected turn from one day to the next. What we have learned in recent months is that even whole economies can change with dramatic speed. In the wake of the residential mortgage crisis and the credit crunch, the property market too has begun to experience a time of reduced in- terest from investors and greatly increased caution from banks and credit institutes.

WE ARE SURE that this will be a focus for debate at Expo Real, together with the here every day at the heart of the property we reach the Swedish property industry – issue of how carbon dioxide emissions market, not just in Sweden but in the rest every single day. should be managed and what responsibility of the world. Our aim has always been, and the property sector should bear. All this is remains, to give our readers thorough, inte- WE ARE ALREADY looking forward to 2009 likely to make this year’s Expo Real exhi- resting and stimulating reporting of what and to meeting again in March... on the bition the most exciting and interesting for is going on in the property industry. French Riviera, at the Mipim property ex- a very long time, and we will be there to We hope very much that you will fi nd hibition. monitor what is happening so that we can this special issue interesting, and perhaps But before that we will see you in the then report it with full accuracy. entertaining too. We would also like to take exhibition hall here! Many of you will already be familiar the opportunity to invite you to come to with Fastighetssverige, not least because we us with your information and ideas about With all good wishes have attended Mipim and Expo Real many interesting events and news. Th rough our Eddie Ekberg times before. It gives us great pleasure to be e-mail newsletter and our news website Editor-in-Chief

PUBLISHER: Rolf Andersson, [email protected] PUBLISHING COMPANY: Fastighetssverige AB, Trädgårdsgatan 1, 411 08 Göteborg. Phone: 031-13 91 16, e-mail: [email protected], www.fastighetssverige.eu EDITORIAL STAFF: Eddie Ekberg, [email protected] • Sofi a Carlsson, sofi [email protected] ADMINISTRATION: Ankie Kjellberg, [email protected] ADVERTISING SALES: Per Wigart, [email protected] LAYOUT OCH PRODUCTION: Lokalförlaget i Göteborg AB, [email protected] PRINTING: Exakta DISTRIBUTION: Posten och CityMail COVER: Nicklas Tollesson

It’s authorised to quote from Fastighetssveriges articles if you adequately site the source. The permission from the publisher is required if you wish Trycksak to reproduce articles or illustrations in full. The paper isn’t responsible for recived material, which has not been ordered. 341417

4 FASTIGHETSSVERIGE #6/2008 Global reach Local focus Investment Management

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14

6 FASTIGHETSSVERIGE #6/2008 Contents

52 8. Welcome to Sweden! 48 An overview of the Swedish property market.

14. Macroanalysis Dark clouds are massing in the Swedish economic sky.

18. Latest industry deals A survey of the most recent transactions.

22. Public/Private Partnership Sweden’s fi rst true PPP project is ready for take-off .

26. City move A whole city in northern Sweden is to move.

30. This is the Swedish property industry A presentation of key companies on the market.

40. A view of Swedish architecture Sweden’s most famous architect on the country’s architecture. 8

44. Analysis What can we expect during the autumn and winter?

48. Vasakronan Europe’s largest deal of the year so far was in Sweden.

52. Close-up Lennart Sten has gone from the chimneystack to the MD’s chair.

22

#6/2008 FASTIGHETSSVERIGE 7 Foto: Peter Rosén / Norrlandia (imagebank.sweden.se)

[ Welcome to Sweden! by Nicklas Tollesson ] ASweden STR

FACTS Sweden

Capital: Stockholm. Population: 9 million inhabitants. Language: Swedish. 85 per cent of Swedes aged over 15 also speak English, at least to conversational level. Form of government: Constitutional monarchy, parliamentary democracy. Parliament: The Riksdag. Area: 450 000 square kilometres. Third largest country in Western Europe. Religion: 80 % belong to the Evangelical Lutheran Church of Sweden. Average life expectancy: Men 78, women 82 years. The proportion of adults aged 25–64 with higher education: 34.5 per cent.

8 FASTIGHETSSVERIGE #6/2008 RONGpart of Europe

The whole of Europe is experiencing severe downturns in transaction volu- mes. But the Swedish property mar- ket still remains relatively strong and as a result is gaining market share. – The Swedish market is the fi fth- largest in Europe, which is remarkable. We account for around 7 per cent of the transaction volume as compared with 1.5 percent of the total property stock, says Charlotte Strömberg, Managing Director of Jones Lang LaSalle in the Nordic area.

#6/2008 FASTIGHETSSVERIGE 9 Sweden A STRONG part of Europe

From 2001 to 2007 all graphs pointed fi rmly upwards on the But then, of course, the celebrations were silenced by the glo- Swedish property market. Transaction volumes increased bal fi nancial crisis that followed the collapse of the American steeply every year as a result of very strong economic deve- residential mortgage lending institutes. The growth of the lopment, growth and ever-rising employment levels, in com- Swedish economy was severely set back (the IMF estimates bination with relatively low interest rates. During these years that growth in Sweden will be about 2 per cent this year, com- foreign interest in the Swedish market also increased more and pared with 2.7 per cent last year, and that it will fall to 1.7 per more. This culminated in the autumn of 2007 when foreign in- cent next year) and interest rates have risen. Higher energy and vestors were involved in transactions that represented 60 per food prices are pushing up infl ation: this summer the Swedish cent of the total turnover. Consumer Price Index recorded the highest recorded rate of infl ation since 1993.

DESPITE THE STORM CLOUDS the Swedish property market has remained relatively stable, however, although it is clear that it is taking longer to complete deals, that the banks have be- come considerably more restrictive in their lending, and that property values have been written down. In the fi rst half of 2008 the total transaction volume in Swe- den amounted to 52 billion kronor, which is a reduction of 16 per cent compared with the equivalent period in the record year of 2007. The corresponding fi gures for the whole European market are a transaction volume of EUR 69 billion (equivalent to SEK 650 billion), which is a reduction of 46 per cent. On the three largest markets – Britain, Germany and France – transac- tion volumes fell by more like 60 per cent. Despite the weakening, Charlotte Strömberg, Managing Di- rector of Jones Lang LaSalle in the Nordic area, takes a positive view of the Swedish market. – We have an extremely liquid market. The reason that Sweden has fared better than the large European markets in

Charlotte Strömberg, Managing Director of Jones Lang LaSalle. 10 FASTIGHETSSVERIGE #6/2008 FACTS Sweden

Credit Suisse Asset Mgmt (Germany) Deutsche Bank (Germany) DnB Nor (Norway) DnB Nor (Norway) ECONOMIC KEY DATA Ejendomsinvest (Denmark) Eurohypo (Germany) GDP 2007 (%, change p.a.): ...... 2,7 GE Real Estate (US) Handelsbanken (Sweden) GDP 2008 (F, %, change p.a): ...... 2,4 GIC Real Estate (Singapore) HSH N Bank (Germany) Infl ation 2007 (% change p.a.): ...... 2,2 GPT Halverton (UK) Hypo Real Estate (Germany) Infl ation 2008 (F, % change p.a): ...... 3,5 ING Real Estate (Netherlands) Kaupthing (Iceland) Unemployment rate Investea (Denmark) Nordea (Sweden) (% seasonly adj.) ...... 5,1 MEAG (Germany) Royal Bank of Scotland, RBS (UK) Number of employees (million): ...... 4,7 Northern European Properties (UK) SBAB (Sweden) Employment growth 2007 Northern Logistic Property (Norway) SEB (Sweden) (% change p.a): ...... 2,2 Oppenheim Immobilien (Germany) Swedbank (Sweden) Employment growth 2008 Orion Capital Managers (UK) (F % change p.a): ...... 0,8 Orkla (Norway) Source: Catella, Leimdörfer/ ISA 3-month rate (%): ...... 4,19 ProLogis (US) 5-year bond yield (%): ...... 4,70 Teesland iOG (UK) Typical lease length (years): ...... 3-5 Unibail-Rodamco (France) INVESTOR ORIGIN Property tax (%): ...... 0,5–1,0 Vital (Norway) 2006, share of total investment market, % Capital gains tax (%): ...... 30,0 Sweden ...... 44 VAT (%): ...... 25,0 Norway ...... 16 Stamp duty (%): ...... 3,0 SWEDEN’S LARGEST COMPANIES UK ...... 15 Corporation tax (%): ...... 28,0 Denmark ...... 5 Turnover, 2007, EUR US ...... 4 Source: The Riksbank/ Volvo AB, automotive ...... 30,1 Global Investors ...... 3 Jones Lang LaSalle, 2008-06-30 Ericsson, mobile systems ...... 19,8 Ireland...... 3 Vattenfall, energy ...... 15,1 Other countries ...... 10 Skanska, construction ...... 14,6 Sony Ericsson, mobile communications ...... 12,9 Source: Jones Lang LaSalle/ ISA SWEDEN´S MAJOR EXPORT SECTORS: Machinery ...... 16 % Automotive products ...... 14 % TYPE OF PREMISES Electrical products & telecom ...... 13 % 2007, share of total acquired area Chemicals & pharmaceuticals ...... 12 % Offi ce ...... 34 Minerals ...... 12 % Mixed ...... 25 Forest products ...... 11 % Retail ...... 14 Other mechanical ...... 6 % Residential ...... 12 Energy products ...... 5 % Industrial ...... 11 Other ...... 11 % Hotel ...... 2 Volvo Cars, cars ...... 11,2 Other ...... 2 Source: Statistics Sweden, Jan–oct 2007 SCA, pulp & paper ...... 11,2 Electrolux, household appliances ...... 11,1 Source: Jones Lang LaSalle/ ISA Telia Sonera, telecommunications ...... 10,2 Sandvik, engineering ...... 8,9 INTERNATIONAL INVESTOR PRESENCE TYPE OF INVESTORS Source: Nordic Netproducts A selection of foreign owners 2007, share of total investment market with property holdings in Sweden # Listed companies ...... 41 Acta (Norway) PROPERTY DEBT PROVIDERS # Unlisted ...... 24 AXA Real Estate Investment Managers (France) # Unlisted property companies ...... 10 A selection Bank of Ireland Private Banking (Ireland) # Institutions ...... 9 Aareal Bank (Germany) Blackstone Group (US) # Private ...... 9 Bank of Scotland (UK) Boultbee (UK) # Government...... 2 Barclays (UK) CGI (Germany) # Other ...... 5 CGS (Germany) Calyon (France) Citycon (Finland) Danske Bank (Denmark) Source: Jones Lang LaSalle/ ISA

#6/2008 FASTIGHETSSVERIGE 11 FACTS Sweden

TRANSPARENCY High transparency level (1–1,5) 1. Canada ...... 1,17 2. Australia ...... 1,20 2. United States...... 1,20 4. New Zealand ...... 1,21 5. United Kingdom ...... 1,31 6. Netherlands ...... 1,33 7. France ...... 1,34 8. Sweden ...... 1,43 9. Belgium ...... 1,48

Jones Lang LaSalle´s Real Estate Transparency Index survey portrays transparency development in more than 80 global real estate invest- ment markets. The 2008 survey covers 82 markets, and included fi ve categories of transparency:

TRANSACTION PROCESS 1. France 1,00 10. Sweden 1,43

PERFORMANCE MEASUREMENT 1. Australia, New Zealand and United Kingdom 1,00 4. Sweden, Canada, France, United States 1,14

LISTED VEHICLES 1. Sweden, Canada, Denmark, Finland, Ireland, Netherlands, South Africa, Switzerland, United States 1,00

MARKET FUNDAMENTALS 1. Australia, United States 1,00 16. Sweden 2,00

LEGAL AND REGULATORY ENVIRONMENT 1. Finland, Hong Kong, Singapore 1,00 6. Sweden 1,27

Source: Jones Lang LaSalle 2008

Ice sculpture at Icehotel in Jukkasjärvi. Grant (imagebank.sweden.se) Peter Foto:

recent times is that the Nordic bank system has shown itself What else do you think distinguishes the Swedish property to be much more stable than banks elsewhere in Europe or market? round the world. No Nordic bank has reported a loss. I should – Something that often comes up when talking to international perhaps add ‘so far’. clients is that people trust the Swedish players. If you look each – Even though the banks have become more cautious and other in the eye and shake hands, the deal is done. Swedes are demand higher surcharges for risk, they are still willing to lend seen as honest and reliable. money for property transactions in Sweden. And the fact that – As regards the market, we have high transparency. Sweden the transaction volume fell by only 16 per cent in the fi rst half has risen steadily in Jones Lang LaSalle’s world transparency of the year shows that we have a market that is working well. If index since the start of the millennium and now holds a con- we then add the two very large transactions that were comple- sistent position at the highest level of transparency. It would ted and fi nanced after the end of June – Vasakronan worth 41 be fair to say that foreign investors’ interest in Sweden grew billion kronor and Steen & Strøm worth 22 billion kronor – the in step with the transparency level. But the foreign investors picture is even stronger.” have become more cautious since the market began to cool,

12 FASTIGHETSSVERIGE #6/2008 Sweden A STRONG part of Europe

In many parts of Europe direct yield requirements have risen extremely rapidly, but this has progressed more slowly in Sweden. But it will now accelerate until some way into 2009. Extreme downhill-skiing in the swedish mountains. Foto: Peter Grant (imagebank.sweden.se) Peter Foto:

and they were involved in only 30 per cent of turnover in the Why do you think that is? fi rst half of the year. – One explanation may be that decision-makers in the Swedish – The opportunistic investors have left the market and – to companies are so old that they were there back in the early generalise – the majority of this group were among the non- 1990s, when Sweden created a property crisis that was expor- Swedish investors, Charlotte Strömberg continues. ted to Belgium, London and elsewhere. That remains fresh in the memory, and these things are often governed more by psy- How does the Swedish market compare with the other chology than mathematics. Nordic markets? – In the fi rst place the Swedish market is bigger. It is bigger How do the Swedish and the European markets diff er? than the others put together. Foreign investors are also more – More things unite them than diff erentiate them. These days interested in the Swedish market, and in recent years the Fin- Sweden is an integrated part of the European market. But one nish market too. In Norway it is hard to gain a foothold, for two thing is that Sweden has a lot of property companies listed on reasons. One is a culture that makes for very quick transactions the stock exchange – which is not the tradition in many other in Norway: they don’t worry so much about due diligence. The countries – and that leads to greater publicity and openness. other is that there is a huge amount of domestic capital in Nor- way. And the Danish market is less liquid, which means that the What will happen on the Swedish market in the immediate internationals fi nd less to invest in there. future? – There are a number of Danish and Norwegian companies – In many parts of Europe direct yield requirements have risen that invest heavily in Sweden, but the Swedes are far more cau- extremely rapidly, but this has progressed more slowly in Swe- tious about investing abroad. den. But it will now accelerate until some way into 2009.

#6/2008 FASTIGHETSSVERIGE 13 [ XxXXxxxxxMacroanalysisxxxxxxxxx avv EEddieddiee by EEkbergkbk Eddieberrg ] Ekberg ]

DARK CLOUDS in the Swedish economic sky As everyone knows, the economic situation in Europe is strained, to say the least. And although we in Sweden have been relatively unaff ected so far, we are now in what is designated a recession. But how serious is the situation and when will it turn round? We have sought the help of an expert in the fi eld who gives her views on the subject.

14 FASTIGHETSSVERIGE #6/2008 With nose for business DTZ discovers the opportunities that you didn’t know existed. SWEDISH GNP GROWTH: 2008: +1.5% 2009: +1.3% 2010: +2.2%

OPEN UNEMPLOYMENT: KARNHUSET.NET ILLUSTRATION AV JONAS BERGSTRAND 2008: 6.1% 2009: 6.7% 2010: 7.2%

INFLATION MEASURED BY THE CPI: 2008: +3.9% 2009: +3.0% 2010: +1.8%

THE RIKSBANK’S REPO RATE: Dec 2008: 4.75% Dec 2009: 4.0% Dec 2010: 3.25%

Source: Handelsbanken Asset Management

Reports on the state of the Swedish economy are pouring in. And they are not cheerful reading. Th eir content revolves round low growth and high infl ation and concludes with terms like ‘eco- nomic crisis’. Even though the economic situation in Sweden was spared the worst of the monumental fi nancial crisis that hit the USA and Europe too, most people now agree that the severe chill seen over there is now producing at least a head-cold here in Sweden. We are thus heading towards a recession, and the judgment of most experts is that it may be a long one. It will involve higher unemployment and lower growth. To gain a better understanding of the situation, we talked to Hanna Norström, who is Senior Economist at Handelsbanken Asset Management.

Describe the economic situation in Sweden at the present time. – We have now passed the peak of the economic cycle and are on the way down. Th e labour market is still pretty strong but there are signs of weakening, as shown for example by the number of fi rms issuing redundancy notices. Th e economy as a whole is sig- nifi cantly weaker than we previously expected. People’s expecta- tions of their own personal fi nancial future are also signifi cantly more negative than in previous recessions. Th is weak level of con- fi dence may reinforce the existing downward trend.

www.dtz.com/se [ Xxxxxx av Eddie Ekberg ]

REVIEWING THE ECONOMY. Hanna Norström is Senior Economist at Handelsbanken Asset Management. She confi rms the view that Sweden is now in recession and says that we can expect a recovery no earlier than after next summer.

How serious is the situation? Th e prices of oil and other raw materials play a major part here. – It will become worse this autumn – there’s nothing to indicate If the oil price continues to fall in the future, infl ation pressure otherwise. It would very clearly be good if the US position turned will fall further. round. Th is is a consumption-led downturn and they are usually less deep though on the other hand they may be longer-lasting. How do you think the repo rate will move during the rema- inder of 2008? What can we expect in the way of economic trends over the We don’t expect a further rise after the September hike. Our opi- next year? nion is that the Riksbank has already raised it too far – I believe that the whole autumn and winter will be and risks intensifying the downturn by doing so. marked by the downturn and that spring will pro- We have bably be weak too. It is also important that infl ation just passed the How high ‘should’ the Riksbank raise it? Is fi ve should be checked during the coming months so that peak of an eco- per cent too high? the Riksbank can introduce a period of interest-rate Yes, fi ve per cent is too high in the present situation. reduction some time next year.” nomic cycle and We are seeing economic activity slowing so strongly are on the way that this will dampen future price improvements. How is the current position aff ecting foreign in- down. Th e Riksbank’s target is that infl ation should be 2 per vestment in Sweden? cent in two years’ time, and given signifi cantly lower – Th e general economic situation is naturally pulling demand coupled with falling oil and food prices, the down the amount of investment. Money is volatile and seeks to infl ation rate should be below that target in two years. move to where the growth opportunities are greatest. And our generally high pressure of taxation and high payroll levy are no When will things turn? When can we begin to see an econo- help at all.” mic recovery? Some time next year, probably after the summer of 2009. What How do you think that infl ation will develop during the re- will drive the recovery will probably be increased demand from mainder of 2008? abroad. Th is will allow companies to increase their activities It will continue to be high. I believe that we will reach the peak again and as part of that gradually begin to recruit new em- in September-October and the rate of growth will then fall back. ployees.

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073_Fastinghetssverige 1 11.09.2008 16:39:18 Uhr [ Latest industry deals ]

[ Xxxxxx av Eddie Ekberg ] The key transactions of 2008

KAPPAHL BUYS ITS OWN HEAD- QUARTERS Top three Stockholm 2008 London & Regional has sold the property Hästägaren 3 in Mölndal in Gothenburg to KappAhl. London & Regional acquired the property immediately before the sale from NR Nordic & Russia Properties in what was judged to be a ‘technical’ deal since Buying co. Sales co. Object Purchase price London & Regional is a major shareholder Pembroke Real Cardinal Capi- The properties Hästen and SEK 4–5 billion in NR Nordic & Russia Properties. KappAhl Estate tal Partners Putten 15 in Stockholm CBD, bought the property, which contains its totalling nearly 90,000 m2 own headquarters, for 447 million kronor. The property has a total of about 10,000 Specialfastigheter Vasakronan Försvarets Materielverk and SEK 2,32 billion m2 of offi ce space and 38,000 m2 of ware- Rådhuset in Stockholm house and logistic space.

Akelius Fastigheter Diligentia AB Täbyhus including 17 resi- SEK 2,3 billion SISJÖ ENTRÉ IN GOTHENBURG dential properties with 2300 SOLD TO A GERMAN FUND apartments in Täby The German fund DEFO-Deutsche Fonds für Immobilienvermögen GmbH has acquired the retail centre Sisjö Entré in Gothenburg from Nordic Real Estate Top three Gothenburg 2008 Partners (NREP). The property, whose formal address is Kobbegården 6:8, has been priced at an underlying property value of 350 million kronor. Sisjö Entré has undergone rebuilding and extension Buying co. Sales co. Object Purchase price in recent years and now totals around 13,600 m2. Notable tenants include Toys R Acta Kapitalförvaltning RBS Nordisk 1 offi ce property on Lindholmen SEK 1 billion Us, Expert Stormarknad, Rusta and Micro. Renting DEALS BETWEEN VASAKRO- KappAhl London & The offi ce and warehouse SEK 447 million NAN AND FASTIGHETSVERKET Regional property FINALISED Vasakronan is buying the property DEFO-Deutsche Fonds Nordic Real Sisjö Entré retail area of SEK 350 million Uggleborg 12, which stands on Vasagatan für Immobilienver- Estate Partners 13,600 m2 just opposite Stockholm’s Central Station, mögen GmbH from Statens Fastighetsverk. The purchase price amounts to 1,304 million kronor. The property contains 35,700 m2 of lettable Top three Malmö 2008 area, mostly offi ces. The largest tenant is Försäkringskassan (the social security offi ce). At the same time Vasakronan is selling four properties to Statens Fast- ighetsverk for 626 million kronor – the properties Atomena 1, Kungliga Myntet Buying co. Sales co. Object Purchase price 1, Cepheus 2 & 3 and Ladugårdsbron 14, which have a combined lettable area of Property Group Annehem 45 properties in Malmö, SEK 708 million around 14,800 m2. Lund, Hässleholm and Hörby ASPLUNDS FASTIGHETER IN ÖREBRO SOLD German investment fund Skanska An ongoing retail project SEK 585 million (in- Castellum’s subsidiary Aspholmen is (name undisclosed) in Burlöv vestment amount) buying nine properties from Asplunds MKB Hagman Esping 9 properties containing SEK 340 million Fastigheter. The properties are located in Fastigheter AB 301 apartments in Malmö central Örebro and the purchase price is

18 FASTIGHETSSVERIGE #6/2008 [ Xxxxxx av Eddie Ekberg ]

562 million kronor. Aspholmen already owns properties in Örebro but mainly on the outskirts of the city. The stock now being Top ten Sweden 2008 acquired totals about 50,000 m2, mostly offi ces but including small proportions of hotel, commercial and industrial space. In Buying co. Sales co. Object Purchase price another transaction, three local companies, Melins Fastighetsförvaltning AB, Fastighets AP Fastigheter Vasakronan The whole of Vasakronan inclu- SEK 41,1 billion AB Umato and Byggfi rma Lund AB, are ding 172 properties buying 18 properties from Asplunds. The Klépierre and Canica AS Swedish part of Steen & Strøm SEK 7,8 billion purchase price has not been disclosed. The ABP greater part of the nearly 68,000 m2 consists of homes but there is also some commercial Niam AP Fastigheter 41 properties in Stockholm, Goth- SEK 7 billion space. The remainder of Asplund’s property enburg, Malmö, Uppsala and Lund stock was purchased by Behrn Fastigheter in May with the acquisition of the centrally Pembroke Real Cardinal Capital The properties Hästen and Putten SEK 4–5 billion located offi ce property Längan 20. Estate Partners 15 in Stockholm CBD

WHOLE OF VASAKRONAN Valad Continen- Alecta A property portfolio containing SEK 2,4 billion ACQUIRED BY AP FASTIGHETER tial Partners 34 properties in south and central After speculation throughout the spring, Sweden it was fi nally AP Fastigheter that bought Specialfastig- Vasakronan Försvarets Materielverk and SEK 2,32 billion Vasakronan. In the deal made public at heter Rådhuset the start of July, the underlying property value amounted to 41.1 billion kronor. Vasakronan’s 172 properties are located in Akelius Fastig- Diligentia AB Täbyhus including 17 residential SEK 2,3 billion Stockholm/Uppsala, Gothenburg and Mal- heter properties with 2300 apartments mö/Lund. The properties contain a total of nearly 1.9 m2 of lettable area. Direct yield Aberdeen Pro- Niam Fund III and 8 offi ce properties in Marievik in SEK 2,1 billion on the transaction is estimated at 5.3%. perty Investors’ Whitehall Stockholm Following the purchase, AP Fastigheter will Pan-Nordic fund change its name to Vasakronan. Two housing Boultbee 922 rental apartments in Stockholm SEK 1,9 billion cooperatives ATRIUM LJUNGBERG AND HUMLE- GÅRDEN BUY AT NORRA STATION Wallfast AB Svenska Bostäder, 30 properties with 2,116 rental SEK 1,6 billion In a joint acquisition, Atrium Ljungberg Stockholmshem apartments in Stockholm and Humlegården have bought the and Familjebostäder offi ce property Blästern 6 at Stockholm’s Northern Station. The seller is Alecta and the purchase price 614.8 million kronor. The were acquired by Niam in August. The 41 properties to Kungsleden. The purchase building totals 24,600 m2 and the current properties total 427,700 m2 and the property price, including transaction costs, amounts vacancy is around 10%. The property also value of the transaction amounted to 7 bil- to 365 million kronor. The properties has 215 parking places. Atrium Ljungberg’s lion kronor. This transaction can be viewed are located in six towns and include the share of the price is 307.4 million kronor as part of AP Fastigheter’s purchase of Va- editorial offi ces of the newspapers Nerikes and Humlegården’s the same. Atrium sakronan and it was completed at the same Allehanda in Örebro, Norrtelje Tidning in Ljungberg also co-owns, with Länsförsäk- price level as AP Fastigheter paid for the Norrtälje and Västmanlands Läns Tidning ringar Liv, the properties Blästern 11 and properties in July. The properties are located in Västerås. The total lettable area is 52,000 Blästern 13. in the cities of Stockholm, Gothenburg, m2, which gives a price per square metre Malmö, Uppsala and Lund. of about 7,000 kronor. 37% of the space NIAM PURCHASES PARTS consists of offi ces and 56% of production OF VASAKRONAN STAMPENGRUPPEN SELLS areas. The biggest tenant is the Nordic At the beginning of July AP Fastigheter TO KUNGSLEDEN region’s largest printing group, V-TAB. The bought the whole of the property company Several diff erent companies in Stampen- average remaining length of lease is 6.5 Vasakronan. A total of 172 properties were gruppen, one of Sweden’s largest newspa- years. included in the deal. Subsequently, 40 of per owners, are selling eight commercial these properties and one other property Source: Newsec Advice AB

Some of the corporate aquisitions are not presented here.

#6/2008 FASTIGHETSSVERIGE 19 TopTToopop 1010 tratrantrtransactionsttransranrraanansnss so far in 2008

WHOLE OF VASAKRONAN Pembroke Real Estate had purchased disabled. Entry to the properties took place ACQUIRED BY AP FASTIG- 12 offi ce and retail properties located in at the end of June. HETER Stockholm, Oslo and Helsinki. The purchase After speculation throughout the price is not offi cial but the total lettable NIAM AND WHITEHALL spring, it was fi nally AP Fastigheter that bought area amounts to 190,000 m2. In Stockholm, SELL IN MARIEVIK the whole of the property company Vasa- two offi ce and retail properties Hästen and Aberdeen Property Investors’ Pan- kronan. In the deal made public at the start of Putten 15, located close to Kungsträdgården Nordic Fund bought eight proper- July, the underlying property value amoun- and Sergels Torg, were sold. They comprise ties in Marievik in Stockholm. ted to 41.1 billion kronor. Vasakronan’s 172 nearly 90,000 m2. The total area in Oslo is The sellers were Niam Fund III and Whitehall properties are located in Stockholm/ Uppsala, 40,000 m2 and in Helsinki 60,000 m2. The Street Real Estate Funds. The properties have Gothenburg and Malmö/Lund. The properties present seller, Cardinal Capital Partners, a total of around 70,000 m2 of lettable area, contain a total of nearly 1.9 m2 of lettable area. bought the portfolio for a million US dollars about 90% of it offi ces. The value of the tran- Direct yield on the transaction is estimated at from Nordea in 2004. saction amounted to 2.1 billion kronor. 5.3%. Following the purchase, AP Fastigheter will change its name to Vasakronan. ALECTA AND VALAD IN BOULTBEE SELLS MULTI-BILLION-KRONOR APARTMENTS FOR NE- STEEN & STRØM SOLD DEAL ARLY 1.9 BILLION KRONOR FOR NEARLY 26 BILLION The occupational-pension com- When Boultbee purchased Cen- KRONOR pany Alecta sold properties to trumKompaniet from the City of The French property company Valad Continental Partners in a deal worth Stockholm last year, it acquired some 1,200 Klépierre, one of Europe’s largest owners of 2.4 billion kronor. The property portfolio rental apartments. In the spring of this year, shopping centres, and the Dutch pension concerned consists of 34 properties located Boultbee then disposed of 534 apartments lo- fund ABP have bought the Norwegian in nine cities and towns in south and central cated in Fältöversten on Östermalm and 388 shopping-centre company Steen & Strøm Sweden. They contain mostly offi ce and wa- apartments located in Ringen on Södermalm, for just under 26 billion kronor. Klépierre rehouse premises and the lettable area totals all in Stockholm. The buyers were two newly acquired a 56.1% share and ABP the remain- about 258,000 m2. More than half the total formed housing cooperatives. The underlying ing 43.9%. The seller was the Norwegian area is in Stockholm. property value amounted to 1.9 billion kro- company Canica AS, controlled by Stein Erik nor. In order to be able to implement the sale Hagen. The lettable area amounts to 780,000 SPECIALFASTIGHETER’S of the apartments, three-dimensional m2, over 96% of which is let. The deal also in- BILLION-KRONOR registration of the property parcels was used cluded Steen & Strøm’s project portfolio and PURCHASE FROM VASA- since there were retail areas at street level in the company’s management of a further 26 KRONAN each property. The total area involved was shopping centres in Norway and Denmark. Vasakronan sold two properties about 88,000 m2, of which about 3,600 m2 The Swedish value of the deal is estimated at in Stockholm to Specialfastigheter. The were commercial premises. around 7.8 billion kronor. properties, whose addresses are Tre Vapen 4 and Fruktkorgen 1, are the buildings of CITY OF STOCK- NIAM PURCHASES PARTS Försvarets Materielverk (the Swedish defence HOLM UNDERTAKES OF VASAKRONAN procurement agency) on Gärdet and the RESIDENTIAL SALES At the beginning of July AP Fast- Stockholm Court House on Kungsholmen. In three separate igheter bought the whole of the The aggregate purchase price was over 2.3 transactions Wallfast, Ikano Fastigheter and property company Vasakronan. A billion kronor, split between 1,135 million Stena Fastigheter bought a total of 4,224 total of 172 properties were included in the kronor for Försvarets Materielverk and 1,185 rental apartments in Stockholm. The sellers deal. Subsequently, 40 of these properties and million kronor for the Court House. The were the three municipal housing compa- one other property were acquired by Niam in National Judiciary Administration is a tenant nies Svenska Bostäder, Familjebostäder and August. The 41 properties total 427,700 m2 and at the Court House. Stockholmshem, all of which are owned by the property value of the transaction amoun- the City of Stockholm. Ikano acquired 1,451 ted to 7 billion kronor. This transaction can be DILIGENTIA AND AKELIUS apartments in Högdalen and Rågsved for 940 viewed as part of AP Fastigheter’s purchase IN HUGE DEAL million kronor, Stena bought 657 apartments of Vasakronan and it was completed at the Akelius Fastigheter bought AB for 328 million kronor in Hägersten, Sätra same price level as AP Fastigheter paid for the Täbyhus from Diligentia. The deal and Vårberg, while Wallfast bought 2,116 properties in July. The properties are located in concerned 17 residential pro- apartments in Hässelby for 1,605 million the cities of Stockholm, Gothenburg, Malmö, perties with about 2,300 apartments in the kronor. A number of requirements were Uppsala and Lund. municipality of Täby north of Stockholm. The imposed on the purchasers: long experience property value of the stock totals 2.3 billion of residential management, responsible long- NORDEA PORTFOLIO kronor and the total lettable area is 162,500 term ownership, clear focus on customers, ACQUIRED BY PEMBROKE m2. In conjunction with the deal, Täby council explicit interest in contributing to the deve- IN BILLION-KRONOR DEAL and Akelius signed a partnership contract lopment of the whole district, and a stable In July it was announced that concerning homes for old people and the fi nancial position.

Source: Newsec Advice AB

20 FASTIGHETSSVERIGE #6/2008 We look after your interests in Sweden

The Swedish Property Federation is a highly pro-active trade organization promoting a very efficient real estate market in Sweden. Our 20,000 members represent the entire spectrum of the property industry, owning or managing premises and rental apartment buildings, industrial properties and tenant-owners’ associations. Order our brochure from [email protected] and find out how we can help you in the Swedish real estate market! www.fastighetsagarna.se [ XxxxxxPublic/Private av Eddie Partnership Ekberg ] by Eddie Ekberg ]

Time for PPP Sweden’s fi rst true large-scale Public/Private Partnership (PPP) project, Nya Karolinska Solna, is just being launched. The total invest- ment is estimated at over 14 billion kronor and the total fl oor area at 335,000 square metres. We have discussed it with the Project Director, Lennart Persson.

THE PROJECT DIRECTOR. Lennart Persson is Director of NKS-förvalt- PPP projects (known as OPS, ‘Off entlig Privat Samverkan’, in ningen, whose task is to carry out the PPP procurement of Nya Karolinska Solna. He will also be reviewing the hospital’s medical activities and Sweden) have been common elsewhere in Europe for some years, creating conditions to make the whole project as good as possible. especially in Britain which has pioneered them. But in Sweden

22 FASTIGHETSSVERIGE #6/2008 [ Xxxxxx av Eddie Ekberg ]

FACTS ABOUT NYA KAROLINSKA SOLNA: • The fi rst medical activities are planned to start in December 2015. • There will be 800 beds in total, including a patient hotel. • Estimated patient throughput: 1,600 patient visits a day, including about 175 acute cases. • The hospital is expected to have 6,000 staff plus around 1,000 researchers and students. • The gross fl oor area is estimated at 335,000 m2 including existing laboratories, with options for expansion. • The investment cost is estimated at 14.1 billion kronor including construction, the Council’s development costs, credit costs, demolition etc. The total does not include hospital equip- ment. (All fi gures at 2007 monetary values.) projects in Sweden

they have been slow to take off . At least, until last spring when the What is the background to Nya Karolinska Solna? Stockholm County Council decided to give the go-ahead for pri- – It’s very simple: the hospital today is in poor condition and vate fi nancing of the Nya Karolinska Solna (NKS) university hos- is built on outdated principles. Th e hospital’s activities are cur- pital. Th e project covers more than just a new hospital; it involves rently carried out in 40 diff erent buildings scattered over a very creating a whole new district of the city. Th e total investment in the large site. Th e logistics are dreadful since there are masses of hospital is estimated to amount to 14.1 billion kronor. Preparations diff erent activities in diff erent buildings. Overall it represents for the PPP procurement are now in hand. On 1 March this year a poor working environment and an unsatisfactory patient en- it was also decided to set up a new administrative organisation, vironment. With the new hospital we can regain control of all NKS-förvaltningen, with the task of taking responsibility for the these things. subsequent work of building a new university hospital. Lennart Persson is Director of NKS-förvaltningen and he What is your role in all this? talked to us about what will happen now and the advantages of – I am Director of NKS-förvaltningen, which will be imple- handling it as a PPP project. menting the PPP procurement. But I shall also be reviewing the

#6/2008 FASTIGHETSSVERIGE 23 [ Xxxxxx av Eddie Ekberg ]

hospital’s medical activities and creating conditions to make them le rooms. Later they will notice too that as good as possible. PPP there is new city district centred on the projects are hospital as its hub. And the building it- Why is Karolinska suitable to be handled as a PPP project? generally com- self will be very beautiful. – Th ere are several reasons. One is that it is a very large project, and it’s important to have some predictability. Another is that it pleted before What is the next stage in this project? is a complicated project. PPP increases the chances of achieving the set time – We are currently working to describe the targets. International experience shows that PPP produces a and keep to the hospital in functional terms. We are more effi cient project. drawing up a tender document which is their budgets. expected to be ready in March 2009. What are the advantages of a PPP project? – Large building and urban development projects in Sweden have Do you think that Nya Karolinska Solna will open the way for had a tendency to become more expensive and run later than more similar projects in Sweden? scheduled. Analysis of our experience shows that PPP projects – Yes, I fi rmly believe that it will. Th is is the fi rst true large-scale are generally completed before the set time and keep to their bud- PPS project in Sweden and I am sure that it will be followed by gets. Th e risks are also reduced because risks are divided between many similar large projects. Th ese may be other hospitals, prisons the commissioning body and the PPP company. In our case the and other major projects. County Council is focusing on running the health service and not on implementing building projects. Who will be doing the building? – I don’t yet know that. We shall be going out to tender in March How will Stockholmers become aware that they have a PPP 2009. But it is a level playing fi eld for everyone and they will be project? judged against criteria that are defi ned in advance and transpa- – Th ey will get Sweden’s most modern hospital with a superb rent. So the process will be fair. Th e crux of it is that whoever can standard of care. Among other things, all patients will have sing- best fulfi l our goals will get to do the building.

24 FASTIGHETSSVERIGE #6/2008 Sweden is far from China, Tanzania and India.

Still people in these countries choose to work with us.

Tengbom is one of the leading and fastest growing architectural firms in Scandinavia. www.tengbom.se [ City move by Eddie Ekberg ]

A whole city in Northern to move In the north of Sweden a city development project on a gigantic scale is in progress. It involves moving large parts of the city of Kiruna. In many ways this is a completely unique undertaking which is giving everyone concerned the opportunity to build anew the city they want to live in in the future.

When Kiruna was built the fi rst time it was a civic project that have more cornerstones than LKAB to stand on. attracted a lot of attention. Everything then revolved about crea- We already have a well developed space industry, ting the right conditions for ore mining. Just as in the great gold and the tourist industry is another source of in- rush in America, a society grew up around a lucrative business. come. Now that we have the opportunity to plann But the great diff erence was that Kiruna was created to controlled anew, it is important that we also fi nd places forr designs and with the vision of becoming a show city. More than other businesses that may be interested in settingg a hundred years later the chance has arisen again. up in Kiruna. – Th is time the planning of the city will be the other way round, says Christer Vinsa, Kiruna City Council’s Project Manager for WHEN KIRUNA WAS CREATED over a hundred yearsrs the city’s transformation project. “We are currently constructing ago, it was based on the fi rst true city plan to takeke the infrastructure fi rst. It is absolutely vital that the new rail- account of the arctic climate and unique geograp-p- way extension is completed in 2012, and the new extension to the hical circumstances. Th at was a major event in iitsts E10 highway is expected to be ready time; now the new development is world news thathat in 2014. Th ese are the most important is attracting visitors from all corners of the earth.h. We want to create a items, together with discussion of the – We have had visitors from pretty well all partsarts spectrum of alternative ideas put forward about how we want of the world, Christer Vinsa says. And the one thinging styles for residences, our new city to appear. People travel- common to them all is that their main interest is nnotot led to the moon back in 1969, so mo- how we are going to progress it purely practically.ally. workplaces and services. ving house from one place to another What everyone is most interested in is how we are is not a big deal. setting about it. And the opportunities are truly ffan-an- tastic. We are not just developing the city to suitt the BEFORE IT IS POSSIBLE to start building new houses and moving geographical conditions. We must build a societyy foforr from the old ones to the new, all parties must plan how the new the future. So everyone involved must be off ered a lot residential areas and the city centre are going to look. Kiruna’s of choices. Th ere must be diff erent places for diffffe erentrent City Council therefore decided at the end of 2004 that the Coun- types of establishment, varying according to ideass anandd cil should produce a new city plan for the central part of Kiruna. taste. We want to create a spectrum of alternativee sty- In the late winter of 2007 the City Council decided to adopt the les for residences, workplaces and services. new in-depth survey plan, and this will be the primary reference document when the new districts are built. IT MAY SOUND DRAMATIC that cracks are slowlyly butbut – We have already built Show City 1, Vinsa says. Now we have surely creeping towards the city, but up to now Kiruna’siruna’s the chance to build Show City 2 and at the same time take advan- buildings have not been overhanging a gaping hole.ole. On tage of all the opportunities that it off ers. Th e mining company the industrial estates just outside the city it is possibleossible LKAB remains immensely important to us but we need to fi nd to see cracks in the ground, but this is not partt ofof thethe new opportunities too. It is crucial that we can off er people so- citizens’ daily life. Th e cracks are spreading in anan eas-eas- mething that makes them stay up here in the north. We need to terly direction towards the city and will progressivelyessively

26 FASTIGHETSSVERIGE #6/2008 [ Xxxxxx av Eddie Ekberg ]

Sweden to move

The vision of the future city of Kiruna is of a unique urban WHOLE CITY TO BE MOVED. landscape under continual development in response to current and future requirements for a high-technology show city – an ecological community in an arctic environment.

#6/2008 FASTIGHETSSVERIGE 27 [ Xxxxxx av Eddie Ekberg ]

reach the railway, buildings and roads. LKAB’s company hotel, turally put right in some way, Th elin says. In terms of transporting part of the E10 highway and Hjalmar Lundbohmsgården will be our ore it is naturally of the greatest importance that the railway aff ected between 2013 and 2017, and the fi rst families from the 150 is operating. But the railway is also a communication link to the apartments in the Ullspiran district, plus a dozen people living outside world. So when the new extension is completed a new in villas, must also be found new homes in the same period. Th en travel centre will also be built. At the same time it is important the fi re station and City Hall will be involved. After 2023 another that we play an active part in closing down the areas that are couple of hundred apartments, some villas, the LKAB company aff ected while also helping to create fertile soil for the new city. school and Hjalmar Lundbohm School will be aff ected. During But just as when trying to foretell how the market will develop, it this decade it looks as if a large number of homes, together with is equally diffi cult to know exactly when the times will come when places such as the Lombia sports ground and Kiruna church, will the physical removals take place. Some investments in the future become aff ected. It is estimated that by 2033 a total of some 3,000 infrastructure have already been made in the form of new fl oodwa- people will have to move to new homes outside the crack zones. ter channels, and plans for new water and sewage pipes are in hand. It is clear that LKAB will go on mining iron ore, but no one really IT MAY SEEM that there is plenty of time before any encroachment knows how the economic outlook will appear in the future. occurs that directly aff ects the city’s population. But since there – We are earning good money at the present time and have made is no guide to how things will progress, it is important that the comprehensive investments for the future, Lennart Th elin conclu- process should allow time. And although a survey plan exists, it is des. And our involvement in working with the new Kiruna depends, important that fl exibility for future changes should continue. of course, on our continuing to mine ore. But LKAB’s fi nancial – A vision is always a vision. It is not possible to foresee eve- future is governed by the external situation in the world. rything that will happen, says Lennart Th elin, Managing Direc- tor of the property company Fastighets AB Malmfälten. What KEY CONCEPTS IN THE CITY TRANSFORMATION: is indisputable is that the railways and the E10 highway must be • An ecologically responsive community of the future. moved and rebuilt. We also know that the time will come to move • A modern show city based on Hjalmar Lundbohm’s ideas a number of the properties that we own. We have more than 1000 – a city that sets out to live up well to the requirements of apartments with about 2500 tenants who will be aff ected by the the age, especially in terms of environmental sensitivity, transformation of the city. Some of these tenants will also be new technology, energy systems and sustainability. among the fi rst to move. • Good indoor climate control. • Environmental assets such as lakes and watercourses close Fastighets AB Malmfälten is owned by LKAB and is a ma- to built-up areas. jor property owner with external tenants, most of whom rent • A goal of clean air, so that known emission sources are apartments. LKAB will naturally be involved in fi nan cing large eliminated. parts of the forthcoming city transformation. • A harmonious city environment with a mixture of residen- ces, services and workplaces well served with infrastructure – It is obvious that when ore-mining operations have an im- for good access, with a network of streets, pedestrian and pact on our natural environment and the city, damages occur that cycle ways and public transport systems. must be compensated. And any harm that we cause we must na-

28 FASTIGHETSSVERIGE #6/2008 In recruiting for the Recruitment real estate industry, Consulting Competence mapping only the real specialists can oӽer the full range of services.

For more information, please contact MD Jonas Gustavsson Phone +46 8 556 70 600 E-mail [email protected] www.fasticonkompetens.se

The #1 independent property news forum in the Nordic region fsve.se

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/&84-&55&3 [ Xxxxxx av Eddie Ekberg ] This is the Swedish real estate industry

The Swedish real estate market are in focus for many investors. As a service for you we here introduce you to the swedish real estate industry. (This list doesn’t claim to be exhaustive. )

30 FASTIGHETSSVERIGE #6/2008 REAL ESTATE listed property companies, property with a combined transaction volume ledge of the property market that has funds, institutional owners, municipal in excess of SEK 50 billion to date. been accumulated in Savills over the CONSULTANTS and private property owners, as well past 150 years. Savills have about 18 000 as major property users. In Sweden the Jones Lang LaSalle employees around the world and cur- DTZ Catella property team is lead by Len- Jones Lang La- rently 19 in Sweden. The management nart Schuss, MD at Catella Corporate Fi- Salle is the Nordic team is Martin Tufvesson Managing nance. An example of a successful tran- region’s leading Director, Greger Hedlund Head of Sales saction was when Catella in January real estate service and Investments, Jonas Winter Project 2008 advised Niam and Whitehall in the fi rm with 150 spe- Manager, Ulf Nilsson Head of Corporate selling of the offi ce portfolio Marievik cialists off ering Finance and Lars Rickardson Head of to Aberdeen. The purchase price was Charlotte Strömberg expertise in all Valuation & Analysis. approximately SEK 2.1 billion. areas of the real estate industry. For owners, investors Colliers Newsec and occupiers who strive to succeed in Colliers Inter- Newsec is The their business, Jones Lang LaSalle off ers national is one Management team Full Service a wide range of services and expertise: of the world’s Property House in the Swedish teams headed by Daniel largest pro- DTZ is a leading global real estate ad- Northern Europe Gorosch, Capital Markets; Mikael perty consultants viser. In Sweden, 70 persons in 3 offi ces with 18 offi ces in 7 Wallgren, Agency Leasing; Ken Strand, present in 57 deliver valuation, capital markets, and countries. Newsec Tenant Representation; Graham Howat, Johan Elfstadius countries, with occupational and development servi- Marie Bucht off ers services to Asset Management and Retail Develop- 267 offi ces. In ces. The company was ranked the best property investors ment. In 2007, we leased out more than Sweden we have offi ces in Stockholm, workplace for Camaraderie in 2007 by as well as corporate clients who lease 100,000 sqm and acted as an advisor Göteborg and Malmö with 50 property Great Places to Work. Additionally, the or own premises for their own use. The in transactions to a value of more than advisors engaged in increasing value managing director, Agneta Jacobsson, company has over 600 professionals SEK 8 billion. Jones Lang LaSalle has ap- for investors, property owners and was named Real Estate Woman of the and has recently been advisors in proximately 1,000,000 sqm of property tenants in the commercial property Year by Fastighetsägarna Stockholm. transaction deals with a value of over 9 under management of which about half market. Johan Elfstadius is the Mana- During 2007 DTZ was involved billion euro. Annually Newsec valuates is retail property. With our international ging Director based in Stockholm. nationally in approx. SEK 25 billion properties for more than 65 billion euro network and local specialists, Jones Colliers specialises in commercial worth of transactions. Examples of and manages over 1000 properties Lang LaSalle uses its vast access to properties and premises in the mar- transactions include advising on the with a total value of 10 billion euro. knowledge and powerful analysis tools kets retail, offi ce, residential and logis- acquisition of Centrumkompaniet’s During the last twelve months, Newsec to ensure that the real estate players are tics & industrial. In all markets we work portforlio of 10 retail properties for has launched two new branches, always one step ahead of the markets. integrated between our service lines Boultbee and a disposal for DB Real Newsec Energy and Newsec Corporate Charlotte Strömberg is the CEO of Jones and off er expertise that is locally deep Estate Investment. Finance. Newsec Energy has built a Lang LaSalle in the Nordic region. and globally wide. Our service lines The valuation team carried out unique solution to reduce the cost are property sales, property acqui- SEK 325 billion worth of valuations. of energy in a property by 60-80 per Savills sition, development & leasing, asset The management team is Agneta cent, thus increasing the value of the Savills Sweden management and retail brokerage. Jacobsson, MD; Jan Rosengren, Head property. The solution uses heat pumps AB’s team of Examples of Colliers unique cross- of Investment Acquisition; Sven Erik confi gured to serve both heating and highly expe- border organization are Nordic Land’s Hugosson, Head of Valuation; Fredrik cooling needs. It builds on traditional rienced profes- retail portfolio of approximately SEK Lidjan, Head of Investment Coverage; heat pump technology that for long has sionals provides 740 million where Colliers identifi ed Mikael Holmström, Head of Invest- been available for private homes but is a wide range of an off -market investment opportunity ment Sales; Thomas Källström, Head further developed to suit commercial Martin Tufvesson expertise to both and later was given the management of Occupier Services; Maria Krumlinde, buildings. In addition to the heat pump local and inter- and leasing assignment. Other suc- Head of Offi ce Agency. technology the company also installs national clients. They off er advanced cessful examples, but not off -market advanced control systems to optimize advisory services including property investment opportunities, have been Catella performance. The combination of these sales, investments, corporate fi nance, with AXA REIM and Standard Life. Re- Catella is the technologies is unique in the market. valuation, analysis and due diligence. cently Colliers advised Credit Suisse in leading provi- Newsec Corporate Finance is a Savills Sweden AB is the Swedish subsi- the acquisition of the offi ce property der of advisory fi nancial services company which diary of Savills plc, listed on the London Hilton 6 in Solna outside of Stockholm. services on the delivers capital market services to the stock exchange. Savills plc is a leading The property consists of 5 300 sq.m. Swedish market as Stronghold Group’s broad network of property advisor with businesses in and is fully let to SJ, Sigma, Epsilon regards property clients within the real estate industry. Europe, US, Asia and Australia and and Swedbank. Also Colliers Logistics Lennart Schuss transactions and The company operates within three through partnership in Africa. Being & Industrial advised KF Fastigheter property-related market segments; real estate, infra- part of the international Savills Group in selling two logistic properties of services within equity capital markets. structure and energy. The clients are facilitate the business to draw upon ad- 55,000 sq.m. in Växjö. Seven industrial We provide all of the expertise required primarily located in the Nordic region vice relating to property investors from properties in Stockholm have been for implementing complicated transac- and include public and private compa- rest of the world, and provides a broad sold on behalf of an anonymous seller tions. Our sixty-strong staff is located at nies, fi nancial investors and governme- client base to support the services in consisting of approximately 38,000 offi ces in Stockholm, Gothenburg and nt-related entities. Newsec Corporate Sweden. Additionally, our Swedish sq.m. to a value of SEK 300,000,000. Malmö. Catella’s clients are primarily Finance has advised on transactions clients can benefi t from the vast know-

#6/2008 FASTIGHETSSVERIGE 31 This is the Swedish real estate industry

NAI Svefa Leimdörfer tic and international investment from the gamut of industries. This vo- NAI Svefa is one Leimdörfer is a exposure to property by off ering a lume creates market knowledge that of Sweden’s leading Nordic comprehensive range of investment allows seizing opportunities, speeding leading property investment products and services. These are all the business process and creating the consultants with bank specialised supported by a rigorous investment most thorough, precisely accurate pic- 18 offi ces on property process, best-in-class research and ture of global commercial real estate throughout the transactions. local active management. conditions and trends. Every day, in country. Through Founded in 1992, markets around the globe, CB Richard Lennart Weiss Sven Dahlin membership in the company has ISS Property Services Ellis´ specialists apply their insight, NAI Global (consisting of 8000 profes- more than more than 80 employees ISS Property experience, intelligence and resources sionals working out of 350 offi ces in with offi ces in Stockholm, Helsinki Services can pro- to help clients make informed real 55 countries throughout the world), and Oslo. Leimdörfer off ers property vide a long list of estate decisions. CB Richard Ellis does NAI Svefa can also off er a vast array of related fi nancial and strategic advisory services that help not exist without their clients - and services on the international property services within four business areas: the investors to will never lose sight of this fact. market. Over the past few years NAI Transactions, Corporate Finance, reach their goal CB Richard Ellis is the only com- Svefa has widened their activity and of- Financing and Strategic Advisory. Anders Borggren to optimize the mercial real estate Services Company fer today a broad range of consultancy In 2007, Leimdörfer executed more yield. Leave the named one of the 50 “best in class” services on the real estate market. NAI than 50 property transactions with an daily business, the property manage- companies by BusinessWeek, and was Svefa consists of approximately 120 em- aggregate value of approx. €3 billion. ment, to them and focus on the asset also named one of the 100 fastest gro- ployees and the Operating Managers Notable transactions included e.g. management questions. Their services wing companies by Fortune. Magnus are: Lennart Weiss (CEO & Transactions), the €330 million divestment of prime range from building and technical Ungmark is the Managing Director in Per Wieslander (Valuation&Analysis), shopping centre Iso Omena in Helsinki service, landscaping, construction, Sweden. Marianne Carlbring (Property Develop- for Doughty Hanson and the €430 mil- architects, accounting, real estate law ment), Peter Möller (Digital Services) lion divestment of a Swedish logistics and project management. The services Forum Fastighetsekonomi and Joachim Bozorgnia (Corporate Real portfolio for Kuwait Finance House. can be combined in order to fi t the Forum Fastig- Estate Services). Leimdörfer has a particularly strong needs of the customers. From single hetsekonomi market position in public transactions services or as a complete solution (Real Estate Eco- TP Group as lead fi nancial adviser in 10 of the focused on resource optimization. Sca- nomics) is one of TP Group is an latest 18 public-to-private property lable solutions that help the investors the leading real independent transactions on the Swedish stock to move fast on a turbulent market. estate valuation consultancy market. In April 2007, Leimdörfer and Investors that have properties, or Håkan Söderqvist and advisory company off ering Norwegian property adviser Glitnir seeking investments, in the Nordic companies in services to opera- Property Group (former Union Group) countries, can turn to them. ISS Pro- Sweden. They are over 20 consultants tors and owners merged. perty Services has large activities in (education at least at level of Master of Jan Leife within the Real Finland, Norway and Denmark apart Science). Forum is one of the founder Estate industry. Aberdeen Property Investors from Sweden. One single point of of International Property Partners Characterized by staying receptive to Aberdeen Pro- contact and a homogenous way of re- (IPP). The offi ces are located in Stock- the clients needs and by identifying perty Investors porting the activities. Their reporting holm, Nyköping, Östersund, Norrkö- creative and long-term solutions, TP is the specialist platform is somewhat unique for the ping, Göteborg and Malmö. They are Group keeps the commission in focus property division business. During the last two years certifi ed appraisers. while working in partnership with the of Aberdeen As- ISS Property Services has invested client. Each commission is unique, and set Management ina modern business intelligence Cushman & Wakefi eld TP Group’s services are tailor-made Jan Sööder PLC, a global platform based on the Microsoft Cushman & with the projects specifi c prerequisi- investment ma- technology. Wakefi eld assist tes in mind. Profound knowledge of nagement group listed on the London clients in every the strategic, cultural, technical and Stock Exchange, which manages CB Richard Ellis stage of the real commercial aspect of the Real Estate around €140 billion of assets in equi- CB Richard Ellis is estate process, re- industry places TP Group’s consultants ties, fi xed income and property. the global leader presenting them at the forefront, enjoying extensive Aberdeen Property Investors mana- in real estate ser- Magnus Lange in the buying, experience of both large and small ges over €30 billion of property assets vices with more selling, fi nancing, scale clients, as well as local and global in Europe, Asia and North America than 350 offi ces in leasing, managing and valuing of as- markets. Through continuous strategic through property funds and separate over 50 countries sets, and providing strategic planning expansion, as well as the acquisition account mandates, making it one of Magnus Ungmark worldwide. With and research, portfolio analysis, site of strong brands, and by connecting the top 10 global property investment approximately 50 selection and space location, among valuable key individuals to the team, managers. specialists in Sweden CB Richard Ellis many other advisory services. By conti- TP Group comprises today of 120 Clients are solely third party provides real estate owners, inves- nually seeing past the immediate ”deal” consultants based in three countries, clients and primarily institutional tors and occupiers through offi ces in and instead determining the highest managing projects throughout the investors, such as life insurers and Stockholm and Gothenburg off e- and best use of property in every Nordic and Baltic region. pension funds. They are served by ring services within Agency, Capital situation, in every corner of the world, The owner of TP Group is NIRAS, more than 800 professionals at offi ces Markets, Corporate Services, Research, they provide the greatest maximum one of Denmark’s most highly in 11 European countries, as well as in Retail and Valuation Advisory. opportunity for owners, occupiers, and respected consulting engineering Singapore, Hong Kong and Sydney. Each year, thousands of successful as- investors, as well as their communities companies. Their mission is to facilitate domes- signments are completed with clients and society as a whole.

32 FASTIGHETSSVERIGE #6/2008 CONSULTANTS 35 employees, and the management tional they are part of one of the LEGAL FIRMS team is Christer Larsson, Stefan Lind- leading global networks of Audit, Tax qvist, Marie Hallberg, Marie Hedlund and Advisory professionals. KPMG – RETAIL Mannheimer Swartling and Lars Toll. aim to turn knowledge into value Mannheimer Centrumutveckling* for their clients by off ering profes- Swartling has Centrumut- RSD sional services that meet the highest the ambition to veckling is fee RSD assists demands in the marketplace today. be the leading based property property owners KPMG have some 123 000 employees fi rm as regards development with strategic in 145 countries. In Sweden they are real estate consultants consultancy for 1500 co-workers at 60 offi ces spread transactions for shopping the succesful throughout the country. KPMG Klas Wennström and related centres, and and secure asset Sweden’s long lasting and strong Eric Lind legal issues in Sweden. By gathering work from initial management of presence in the real estate indu- Anders Ekwall more than 50 lawyers in the real concept to project completion with retail properties. stry is manifested by the fact that estate group, we provide a combined total project management, concept They focus on creating Retail expe- KPMG audit major swedish property knowledge of all relevant legal areas, development, letting, architecture, rience to optimize the value of the companies such as Balder, Castel- thereby giving our clients acsess to design and administration. They are property. RSD illuminate the hidden lum, Hufvudstaden, Kungsleden and a team of lawyers with a clear focus also a management and specialist values with project developments. Stena Fastigheter, and that during on creating business value. The consultancy that can contribute their RSD have a staff of 11 persons and 2007 KPMG Sweden also advised a number of transactions we advise considerable specialist expertise in are currently invoved in a recruiting number of leading domestic and on year after year is a guarantee that sub-projects, and off er investment process for all their ongoing projects. international real estate investors on the lawyers are updated on all the advice when buying and selling The leading consultants at RSD is transaction-oriented issues. Through latest developments and challenges shopping centres. Centrumutveckling Anders Ekwall and Eva Hanslin. RSD KPMG’s strong international network in the Swedish real estate market. We have a staff of 80 specialists including have recently assisted Standard Life they have instant access to the most also have a strong presence in other the management team of, Eric Lind, in their second acquisition in Sweden current information on important European real estate markets, such as Helena Liljedahl, Inger West and Pat- with Neighbours II. international industry development the German and the Russian markets. rik Schöldström. Centrumutveckling’s issues such as the development of Our client base include major real head offi ce is in Stockholm with REIT regimes and the evolving pro- estate companies, real estate develo- subsidiaries in Gothenburg, Malmö, perty derivatives markets. pers, real estate funds and fi nancial Moscow and Kiev. Centrumutveckling owners, states, municipalities and have close to 40 assignments and AUDITING BUREAUS PWC many more. The real estate group is projects in Scandinavia, the rest of Öhrlings Price- Deloitte lead by Klas Wennström (Stockholm), Europe incl. Russia, Ukraine, as well waterhouseCoo- Deloitte is one Jesper Prytz (Göteborg, chairman as Asia. pers is Sweden’s of Sweden’s of the group), and Johan Granehult *Their offi ces in Moscow and leading leading profes- (Malmö). Ukraine are branded as Centrum professional sional services During 2007 Mannheimer Swartling Consultants. services fi rm, fi rms, employing advised on real estate transactions with 3,000 staff 1 000 people Henrik Steinbrecher to a value of SEK 58 billion. Two high- NCM Donaldsons members in 125 in 30 offi ces profi le transactions were NCM Donald- Andreas Adolphson offi ces spread across the country. throughout 1) the disposal of two real estate sons is a group This ensures a geographical coverage Sweden. Deloitte deliver world- portfolios to Sveareal AB, owned of companies and range of expertise that few can class assurance and advisory, tax, mainly by Orkla Finans Kapitalförvalt- active in Swe- match. In addition to auditing, our and consulting services. Some of ning ASA in Norway. Property value den, Norway services include accounting, risk ma- Deloittes prominent advisors are (4 750 MSEK) and the number of and Denmark. nagement, tax advisory services, cor- Joachim Agrell, Eva Lindberg and An- properties (82 commercial proper- The group is porate fi nance and advisory services. Lars Toll dreas Adolphsson. Deloittes turnover ties in Sweden) made this transac- part of Donald- Our Real Estate Industry Group off er concerning the real estate market last tion one of the highlights of 2007. sons Europe with approximately 800 some of Sweden’s most experienced year was approximately 100 millions Partner in charge of the transaction consultants in 14 countries. NCM specialists within the areas of fi nancial Swedish kronor. Recent real estate at Mannheimer Swartling was Klas Donaldsons has 35 years of expe- analysis, valuation, deal support, transaction clients of Deloitte include Wennström. rience of retail and shopping centre real estate economics and strategy amongst others The Carlyle Group 2) the creation of a new real estate development as well as property development advisory services. Our and GE Real Estate. company, Platzer Fastigheter, on management. integrated industry approach ensure behalf of Länsförsäkringar, Brinova NCM Donaldsons generally refer to you to stay one step ahead when it KPMG Fastigheter and Ernströmgruppen. The themselves as executive consultants. comes to complex transactions and KPMG Sweden three owners set up this joint venture By this they mean that they not only decision-making in local or internatio- is one of the as a basis for further expansion. The off er theoretical consultancy services nal business environments. Across our countrys leading initial property value amounted to SEK but also facilitate the practical opera- network, more than 140,000 people professional ser- 3,5 billion. Partner in charge at Mann- tions for the implementation of each in 149 countries share their thinking, vices fi rms in the heimer Swartling of the transaction assignment. Their four areas of busi- experience and solutions to deve- area of fi nancial was Jesper Prytz. ness are Development Consultancy, lop fresh perspectives and practical information. As Asset Management, Property Advice Björn Flink advice in order to create added-value a member of and Tenant Representation. for their clients. KPMG Interna- NCM Donaldsons have in Sweden

#6/2008 FASTIGHETSSVERIGE 33 This is the Swedish real estate industry

Glimstedt • advising Government of Singapore MAQS Law Firm The Legal 500 Europe, the fi rm recei- The Stock- Investment Corporation on the acqui- MAQS Law Firm ved “some of the most glowing client holm offi ce of sition of Kungshuset in Stockholm. is a groundbrea- testimonials of any fi rm in Scandinavia Glimstedt, led by • advising Eurocommercial Properties king and dyna- in any discipline.” Last year, the Stock- managing part- on the acquisition of the shopping mic full service holm offi ce was involved in transac- ner Jan Litborn, centre 421 in Högsbo outside Goth- fi rm within the tions in the real estate market to a has specialized enburg. fi eld of business value of SEK 30 billion. This year, the in real estate • advising Sveareal AB on the acquisi- law. Their representation by the Stockholm of- Jan Litborn Patric Olofsson transactions tion of a large property portfolio from integrated and fi ce includes clients such as AXA IM, since for many and that makes Kungsleden AB. tailored teams provide concrete total Credit Suisse, MEAG, Niam Fund IV, Glimstedt one of the foremost and • advising the German fund CS Euro- solutions that develop and protect RREEF, Schroders and Sveafastigheter. dependable fi rms in this area of real, managed by Credit Suisse Asset the business aff airs of both Scandina- practice. The legal fi rm Glimstedt is, Management Immobilien Kapitalanla- vian and international companies. At Linklaters Law Firm with its twelve offi ces in Sweden and gegesellschaft mbH, on the acqui- MAQS there are more than 220 people Linklaters is a three in the Baltic States, proudly one sition of part of the property Solna working in Denmark, Estonia, Poland leading premium of the leading business law fi rms in Hilton 1 from Mengus. and Sweden. MAQS offi ces are located global law fi rm Sweden. Their overall objective being • advising Klépierre and ABP Pension in Copenhagen, Gothenburg, Malmo, which specialises to continuously supply their clients Fund on the acquisition of Steen & Stockholm, Tallinn and Warsaw. In in advising on with appropriate and effi cient advice Ström. Sweden there are 145 employees, cross border based on the client’s specifi c needs with 90 of them certifi ed lawyers. The transactions in order to arrive at constructive and Cederquist leading real estate lawyer of the fi rm Rolf Johansson and mergers useful solutions, leading to success- Cederquist is a is Patric Olofsson. Last year MAQS and acquisi- ful business deals. Glimstedt has a leading business Law fi rm Acted in three of the six tions for many of the world’s leading total of 215 employees including 30 law fi rm in largest property transactions and was companies, fi nancial institutions and specialising within the real estate Sweden and involved in transactions to a value of governments. They work in integrated area. During 2006 fi nancial year they is consistently SEK 51 billion . global teams with both Nordic and were involved in transactions valuing acknowledged Amongst them being where MAQS international clients supporting them SEK 52 billion. One of the more pro- as being a top and Ashurst in London acted for in transactions in or out of the Nordic Erika Åslund minent cases was the stock exchange tier legal service London & Regional on the AIM-listing region. 100 lawyers work in integrated quotation of Din Bostad from the provider. Over the past years, the of a group of Swedish, Finnish, Danish practice teams in the Stockholm offi ce acquisition of Tripep AB, valued at fi rm’s real estate practice has acted and Lithuanian property companies. to provide legal advice in all areas SEK 4 billion. Glimstedt assisted Din for vendors and investors in several of Market value SEK 10,5 billion. needed for successful transactions. Bostad on this occasion. the largest real estate deals. The real MAQS also acted for a JV between The leading property lawyers are estate practice works in close coope- GE Real Estate and London & Regional Magnus Lidman and Björn Winström. Vinge ration with the fi rm’s banking and fi - in their sale of logistics properties to Linklaters has acted on some of the Vinge’s property nance group, which holds an unparal- Northern Logistics Properties. SEK most complex deals in the Swedish and environme- leled position as legal adviser in the 4,8 billion. Furthermore, MAQS acted market during the past year. Linklaters ntal law group is market for real estate fi nance and real for Locellus in the restructuring and has for example advised Union Invest- considered one estate securitisations. The fi rm com- reverse takeover of the listed company ment, John Mattson Fastighets AB on of the most pro- prises approximately 75 lawyers, of Din Bostad Sverige. SEK 4,1 billion. its sale of three landmark properties in minent in Swe- whom about a dozen constitutes the central Stockholm and one property Stefan de Hevesy den. Their clients real estate practice. The leading lawy- Kilpatrick Stockton Law Firm in Stockholm CBD and Morley on its include Swedish ers for the practice are Erika Åslund, The Stockholm acquisition of property in Kista and and international property compa- head of the group, and Martin Rosell. offi ce of Kilpa- Sundsvall. Linklaters also acted in nies, traditional industrial companies, During the last 12 months Cederquist trick Stockton relation to the Vasakronan sale. and governmental authorities. They has been involved in property deals has established also represent several internatio- to a value of SEK 73,388,000,000 and a position Ashurst Law Firm AB nal investment funds and parties, and real estate fi nancings to a value as a leading fi rm Ashurst Stock- including fi nancial institutions, rating of SEK 40,180,000,000, respectively. for Real holm opened Fredrik Ahlqvist institutes and others. Vinge have a Cederquist acted for example as legal Estate M&A and in January 2007 total of 330 lawyers, with around 30 advisers to Boultbee in its acquisi- Construction. Institutions and large when AJB Bergh being specialised in the property and tion from Stockholms Stadshus of corporations, including several global advokatbyrå AB, environment fi eld.The leading lawy- CentrumKompaniet, holding ten investment banks and property funds, merged with ers of this group is Stefan de Hevesy shopping centres in Stockholm, and retain our transactional services on Ashurst. There and Patrick Forslund. During 2007 as counsel the Swedish Government a regular basis. Kilpatrick Stockton Karim Sahibzada are current- Vinge was involved in assignmnets in its divestment of Vasakronan, pride themselves in staffi ng their ly 40 lawyers including fi ve partners valued at SEK 68 billion. Some pri- Sweden’s largest commercial real project teams with knowledgeable at Ashurst Stockholm. Jonas Bergh mary representations that Vinge has estate company. and experienced lawyers who actively is head of the Stockholm offi ce. The been involved in during 2007/2008 participate throughout the transac- offi ce specializes in company law, include: tion process. There are a total of 35 Mergers&Acquisitions, private equity, • advising Stockholm Stadshus AB on employees at the Stockholm offi ce, 18 real estate, commercial and corpo- the sale of the shares in Centrumkom- of them specialised within Real Estate rate, IP/IT, competition/antitrust, paniet i Stockholm AB. M&A and Construction. According to employment, banking, leveraged and

34 FASTIGHETSSVERIGE #6/2008 This is the Swedish real estate industry

structured fi nance, project fi nance, a unique global perspective. Among approximately 100 people, of which Moscow, Stockholm and Warsaw litigation and arbitration. The real their clients are many of the leading 70 are lawyers. They provide a full Magnusson off ers top-fl ight legal estate department, headed by Karim Swedish and international companies, range of services in commercial law, services for clients operating in the Sahibzada advises listed and unlisted banks and organisations, as well as such as real estate, M&A, corporate, real estate industry in the Baltic Sea Swedish and international clients public institutions. They are part of an construction, banking and fi nance. Region. Our lawyers are prepared to (sellers, buyers or fi nancial backers) extensive European network, linking Lindhs DLA Nordic also has specialist off er any legal service that may be on all aspects of real estate transac- with offi ces spanning six continents lawyers in IT, intellectual property, required in specifi c real estate trans- tions. They professionally provide to provide their clients with a peerless tax, private equity, litigation, insu- actions, based on our client’s needs clients with all the legal advice that combination of local and global rance, regulatory, insolvency and em- and expectations. a real property owner may require, expertise. ployment. The lawfi rm is part of DLA including lease law and other rights of Baker & McKenzie Sweden off ers the Piper Group, an exclusive alliance of use, planning issues, easements and benefi t of working with local lawyers international law fi rms with over 4000 land subdivision. Ashurst Stockholm who have a strong international out- lawyers in 38 countries in Europe, continously assist ICA and Kungsleden look, operating within an organisation USA, Asia, Australia, Africa and the ARCHITECTURAL AB (publ), amongst others, with their with a distinctive, business friendly Middle East. Consistently ranked as FIRMS acquisitions and divestments. culture and a reputation for quality the world’s top real estate practice by across the world. leading industry research fi rms, DLA Tengbom Wistrand Their Global Real Estate Prac- Piper Group continues to diversify Tengbom is the Founded 1915, tice includes more than 175 locally its real estate practice by expanding third largest Wistrand is one experienced, globally knowledgeable is global capabilities through the architectural of the leading lawyers familiar with all aspects of pro- addition of leading practitioners th- fi rm in Sweden law fi rms on the perty development, sales, acquisitions, roughout the world. With more than and one of the Swedish market. leases, and the provision of security in 550 real estate lawywers throughout leading archi- Wistrand is commercial, retail, industrial, residen- the world, the fi rm provides a full Magnus Meyer tectural offi ces a full-service tial and mixed-development markets. range of transactional and advisory Lennart Ernstson based in Scan- business law services to real estate-related fi rms, dinavia. Tengbom employs some 180 fi rm covering all areas of law with an Foyen such as developers, investors, lenders architects and architectural engineers emphasis on M&A, Corporate, Real Foyens lawyers and asset managers. The fi rm also at offi ces in Stockholm, Gothenburg, Estate, Dispute Resolution, Energy & regularly assist provides advice relating to acquisi- Malmö, Helsingborg, Umeå and Environment and Banking & Finance. in real estate tions, dispositions, fi nancing, leasing, Kalmar. The fi rm is one of the oldest The fi rm has more than 170 em- transactions con- entitlements, economic incentives, architectural fi rms in Europe, and has ployees in its three offi ces in Sweden: cerning individual corporate facilities and related legal since it’s inception in 1906 held its Stockholm, Gothenburg and Malmö. property units as services to its clients. place in the manuals of contempory The fi rm’s international client list well as entire real Eva Westberg architectural form as well as on the consists of multinational corporations, estate companies Magnusson Law Firm modern scene. international banks and other fi nancial and large portfolios. They have a vast Magnusson Tengbom off er a broad spectrum of institutions. experience representing clients in sub- has expanded services; ranging from urban master Wistrand holds a strong position stantive real estate transactions, which its real estate planning, healthcare and research and advises Swedish and international gives them knowledge and experience capabilities with facilities, offi ces, retail, commercial, clients on real estate transactions. that is important also when assisting in the arrival of residential and industrial buildings to Their real estate practice off ers matters regarding smaller objects. partner Magnus landscape architecture and interior full-service legal advice covering Foyen represent clients not only with Magnus Björkander Björkander, who design and layout. They have great transactions, due diligence and acquisitions but also in restructuring is heading the experience dealing with complex fi nancing, construction and real estate real estate portfolios within corporate Firm’s real estate practice in Swe- schemes and solutions for a variety of development, commercial lease issues entities and groups of companies. The den. Magnus Björkander, ranked in clients with a wide array of architec- as well as confl ict resolution and other advice in such matters do not only Chambers Europe 2007 and 2008 in tural requirements. Many of these legal issues relating to the acquisi- comprise agreement negotiations but the area of real estate, has extensive clients are internationally renowned tion, ownership and transfer of real also fi nancial issues, service agree- experience advising on a wide range companies such as Astra Zeneca, estate. Their clients vary from listed ments, take-overs, employed staff , legal of real estate matters. Also joining Ericsson and Canon. Tengbom work real estate companies, banks, other issues regarding tenancy rights, dealing Magnusson’s real estate team is as- also in conjunction with a large fi nancial institutions and investors with securities and mortgages, cont- sociate Maria Mastej, with experience number of governmental institutions to real estate entrepreneurs. Lennart racts with authorities etc. This makes in commercial rent and leasing law. and authorities including amongst Ernstson is responsible for real estate FOYEN a long-term valuable partner for Magnusson’s real estate department in others the Foreign Ministry of Swe- in Stockholm. improving real estate business. Stockholm advises listed and unlisted den. The Tengboms MD is currently Swedish and international clients on Magnus Meyer. Tengbom has a strong Baker & McKenzie Lindhs DLA Nordic all aspects of real estate transactions international focus and has recently Baker & McKen- Lindhs DLA including, Real estate acquisition, De- been involved in a series of complex zie Sweden, part Nordic is one velopment and construction, Leasing architectural and urban planning of one of the of the largest and operation, Financing, Litigation projects in various parts of Europe, world’s leading fullservice law and arbitration, Environmental pro- Africa and China. and most inter- fi rms in Sweden. tection and Comprehensive tax advice nationally diverse The Stockholm relating to real estate projects. Mauritz Silfverstolpe law fi rms with Bengt Kärde offi ce employs With offi ces in Copenhagen,

#6/2008 FASTIGHETSSVERIGE 35 This is the Swedish real estate industry

White sultants, and is well suited to manage ning and project management. All design. They always aim to give their White is one of complex and large-scale projects their current Swedish offi ces will be projects a contemporary and edged Scandinavia’s with mix-used functions. Currently, maintained in Stockholm, Umeå, design based on each projects unique leading architec- Equator Stockholm is refurbishing Skellefteå, Lidköping, Falköping and context. tural companies, an existing offi ce building in central Trollhättan. Among their clients you fi nd with 530 employ- Liljeholmen, Stockholm, with newly property and development fi rms ees working at 10 designed and integrated shopping Wingårdh such as Hendersson, Landic, Teesland, Anders Svensson offi ces in Gothen- mall, apartments, and underground Wingårdh Midroc Property Development, Jones burg, Stockholm, parking area. The vision is to infuse Arkitektkontor Lang LaSalle, SkansTornet, Aberdeen Malmö, Linköping, Halmstad, Örebro, more commerce and housing into AB is one of Property Investors, construction fi rms Uppsala, Umeå, Copenhagen and the neighbourhood to make it livelier the fi ve largest like Skanska, JM and NCC and hotel Naestved. White has to its credit also and more desirable for the urban architect’s of- operators like Hilton, Radisson, Choice one of the strongest brands in the dwellers. fi ces in Sweden and Scandic. They also work outside industry. Adherent to our Equator network today with 130 the private sector with universities, Gert Wingårdh White see themselves as a large, philosophy, they also collaborate with employees in city councils and government. employee-owned ideas factory. Their Equator Paris on the investment fi rm two offi ces, Göteborg and Stockholm. owner system acts as an engine, a East Capital’s expansion to Paris, with It has grown from Gert Wingårdh’s dynamo, a stabiliser and a direction whom they have designed offi ces for business, which began in 1977. After indicator, all at the same time. Shared in Stockholm and Moscow. a number of minor interior projects ownership means a shared commit- and houses, Wingårdh designed the BANKS & CREDIT ment to excellence. LINK signatur partially sunken building at Öijared’s INSTITUTIONS Whites entire range of expertise LINK signatur is Country Club in Lerum outside of embraces architecture, urban plan- one of northern Gothenburg in 1986. The clubhouse Aareal Bank AG ning, landscaping, interior design, the Europe’s largest attracted considerable attention environmental settings and project architecture and Wingårdhs was selected for an management. Whites CEO is Anders companies and extension of the premises of the Svensson. A few of the projets White is a unique pharmaceutical company Astra Hässle recently work with is a new visitor Linda Marend alliance. WSP (now Astra Zeneca). Beside Astra centre at Läckö castle, residential Sweden AB Zeneca, the electronics company buildning “Silo” in Gothenburg, a retail and Multiconsult AS in Norway are Ericsson soon emerged as one of the area in Gothenburg - Bazaar, shareholders in LINK, enabling the key clients. Numerous awards and the new university hospital at Karo- new company to off er complex and frequent publicity confi rms Wingårdhs Management team linska, Stockholm, a new architecture integrated consultancy services. LINK status as artistically leading. school in Umeå and Stockholm Water architecture combines large scale Wingårdhs have had several major Aareal Bank specialises in fi nancing Front, a new congressbuilding. projects with fi ne detail work: from buildings fi nished lately, as Clarion real estate and is active on the interna- urban planning to interior design, Sign Hotel at Norra Bantorget and tional scene in more than 25 countries, Equator from airports to kindergartens, from K:fem fashion centre, both in Stock- with presence in the Nordic Region Equator is an hospitals to residential and from gene- holm, and a visitors centre in Germany. since mid 1990’s. Although Aareal is architectural fi rm ral outlines to business relocation. In the Lund-Malmö area several bu- based in Wiesbaden, Germany, about that combines LINK architecture has a unifi ed staff siness and leisure facilities are under 80 percent of new loans are nowa- regional as well of around 300 professionals in Swe- planning, together with a concert hall days granted to borrowers outside as international den, Norway and Denmark. and smaller delights. Germany. The fi rst Representative experience with The size of the new company and Offi ce in the Nordic Region opened Annica Carlsson a strong business depth of their knowledge enables Krook & Tjäder in Denmark in 1996, followed four focus. Their offi ce them to handle large scale, advanced Arkitekterna years later by an offi ce in Stockholm. gives clients individual advice and projects, whilst their 16 regional offi ces Krook & Tjäder Jonas Lindholm has the position ideas throughout the entire design also work independently for the local AB is a promi- of General Manager for the Nordic and building process; from initial market. This increases the variety and nent architec- Region with offi ces in Stockholm, programming analysis to completed quality of work off ered by LINK as a tural fi rm with Copenhagen and Helsinki. Nordic building. With employees coming group. They see the cooperation bet- offi ces in the Region also covers business in Norway from all parts of the world, those with ween WSP Sweden and Multiconsult Stefan Tjäder three largest and the Baltics. exceptional experience, knowledge Norway as a great opportunity to work cities in Sweden - In June 2008, Aareal Bank fi nanced and creativity, they aim to achieve in multidisciplinary teams, delivering Stockholm, Gothenburg and Malmoe. SG Nord Holding A/S’ and Sjælsø commonly established goals. With edge competence in, for instance, the Krook & Tjäder has had a remarka- Gruppen A/S’ construction and invest- this strong gathering of creative di- increasingly important fi elds of energy ble development over the last few ment of two towers located near by versity, they are well prepared to meet and climate. years and is now one of the largest City centre of Copenhagen. The offi ce demands of local and international LINK architecture will work with ar- architectural fi rms in the country with tower has been designed by Foster + clients. The results are architecturally chitecture, interior design, landscape altogether more than 90 employees. Partner and the Hotel Tower designed successful projects with optimised design and urban planning. Their The offi ce was founded twenty years by Dissing & Weitling will be operated value for their clients. working area will cover the whole ago, in 1988. as a four star Crown Plaza hotel. The Equator Stockholm works with society but also focus on advanced Arkitekterna Krook & Tjäder work project consists of approx 60.000 complex projects, always in close col- medical care, schools, residences, within all fi elds of architecture, m2 and has an estimated market value laboration with their clients and con- offi ces, interior design, urban plan- ranging from city planning to interior of € 300 million.

36 FASTIGHETSSVERIGE #6/2008 The project in Copenhagen is one employees and is headed by Anders customers, retail, banking, life and Eurohypo of three large development projects Tägt. pensions insurance, asset manage- For commercial currently under construction and In June 2007 Hypo Real Estate Bank ment and leasing products.Ove Juvén real estate fi nan- fi nanced by Aareal Bank’s Nordic International AG announced that is the Head of Real Estate Financing ce requirements offi ces. The two others are offi ce it had provided senior acquisition in Sweden. DnB NOR have expressed Eurohypo is a development Stockholm Waterfront in fi nancing of SEK 6 billion (EUR 640 high ambitions to increase the activity major port of call. Sweden (25.000 sqm, market value million) to the listed Swedish property within Sweden. Their products € 225 million) and cultural and retail company SAGAX. The fi nancing was Håkan Johansson range from stan- centre Solaris in Estonia (35 000 sqm, provided to facilitate a combined re- HSH N Bank dard fi xed-rate lo- market value € 100 million). fi nancing and acquisition fi nancing of As a one-stop ans and structured fi nancing packages SAGAX’s property holidings in Greater fi nancial service to real estate investment banking and SBAB Stockholm and Finland. provider with capital market products. SBAB, with its A designated team of 8 people from an extensive In accordance with the companys 370 employees, our Munich branch covers the Baltic product and ser- motto ”all business is local” they is wholly owned region as well as Russia / Eurasia. vice range HSH provide their clients with a fi rst class, by the Swedish N Bank off ers one-stop service in their own locality Erik Visteus Government. RL-Nordic/RZB customised covering advice, fi nance and support. The owner business solutions worldwide tailored Eurohypo identify the best solution s mandate to to the clients’ individual needs. Real for their client’s needs and their local Per O Dahlstedt SBAB is to act Estate Nordic Area comprises the contact will advise on all aspects to ensure diversity and competition Baltics, Denmark, Finland, Norway of real estate, arrange tailor-made in the Swedish residential mortgage and Sweden. 28 specialists are placed fi nance and, where necessary, bring in market whilst obtaining a return locally in Stockholm, Helsinki and product specialists. on investment in line with market Copenhagen and the Nordic Area is rates. SBAB’s market share is about 10 Ronald Lausch and Stefan Silfver fully integrated in HSH Nordbank’s percent within the mortgage market. international real estate division. Our In 2007 SBAB launched its competi- RL Nordic AB is a member of, and local Origination Team in Stock- tive deposits to private customers. wholly owned by, the Raiff eisen holm is responsible for Swedish and REAL ESTATE SBAB also provides corporate clients Banking Group of Austria. The strategy Norwegian clients and comprises fi ve COMPANIES with loans and credit facilities for the is to off er renting solutions for real persons all with solid fi nancial and purpose of residential and commercial estate, leasing of property and project real estate related backgrounds. Con- AP Fastigheter property fi nancing. Per O. Dahlstedt, development in the Nordic region. tact: Erik Visteus, Head of Origination Head of Corporate Lending, mana- The target group is corporate clients, Sweden/Norway or Kristian Orrbeck, ges a team of account managers, government and municipal councils. Client Executive. credit analysts, valuers and laywers in Since 2006 the company operates Stockholm, Gothenburg and Malmö throughout all of the Nordic region SEB off ering clients specialized expertise, while the head offi ce is in based SEB is a leading a lean and speedy organisation and in Stockholm. In summer 2007 a Northern- tailor made solutions. SBAB has been subsidiary, RL-Nordic OY, was esta- European instrumental in many of the major blished in Helsinki. RL Nordic AB has banking group Fredrik Wirdenius swedish property transactions in 6 employees and the MD is Ronald and partner for recent years. Lausch. Transaction volume since corporations and AP Fastigheter is one of the largest 2006 has been around EUR 220 mio. in Gunnar Widenfelt fi nancial institu- property owners in Sweden with Hypo Real Estate Sweden, Finland and Norway. A joint- tions. Its activi- property holdings valued at SEK 38 bil- Hypo Real Estate company was established in 2007 with ties comprise mainly banking services, lion at the end of 2006. The company´s Bank Internatio- Skandrenting AB, RL-Skand AB. but SEB also carries out signifi cant life core activities involve owning and ma- nal AG provides insurance operations. SEB’s 20,000 em- naging commercial properties and re- its customers DnB NOR ployees serves more than fi ve million sidential buildings in selected growth with the com- DnB NOR is private individuals and some 400,000 areas within Sweden - in Stockholm, plete spectrum of Norway’s largest corporate customers and institutions Uppsala and Gothenburg. commercial real fi nancial services in the Nordic and Baltic countries, Ger- Anders Tägt Approximately 70 percent of the estate lending group with total many, Poland, the Ukraine and Russia portfolio is situated in Stockholm. products. The bank’s product off ering assets compri- as well as via strategic locations in all These wellplaced Stockholm areas in- is primarily geared to internationally sing more than of the world’s fi nancial centres. cludes Kista, Nacka Strand, Telefonplan active, medium and large real estate Ove Juvén NOK 1,400 bil- The real estate market is becoming and Värtahamnen. In Gothenburg, AP investors and developers. lion. The Group increasingly international. SEB has Fastigheter predominantly owns retail Sweden, Norway, Finland and Den- includes the strong brands DnB NOR, today a considerable presence in properties but also offi ce buildings, in mark are all served by our Stockholm Vital, Nordlandsbanken, Cresco , Northern Europe, with real estate the city center. branch, where experienced professio- Postbanken, Salus Ansvar and Svensk activities focused around the Nordic The Uppsala portfolio gravitates nals in structured real estate fi nance Fastighetsförmedling. Sweden is countries, Germany, Poland and the towards residential buildings, among solutions advise real estate investors defi ned as core market. DnB NOR have Baltics. SEB off ers fi nancing and other these Studentstaden, but also consist who wish to invest in these markets. over 600 employees in Sweden alone SEB products to proff esional real of some centrally situated commer- The Stockholm branch has a total 11 covering the business areas: corporate estate clients in SEB´s home markets. cial properties including the Uppsala

#6/2008 FASTIGHETSSVERIGE 37 This is the Swedish real estate industry

Science Park. The management team and acquisitions. Under Fabege’s impro- geographical location. Operations Hufvudstaden is Fredrik Wirdenius, Lars Johnsson, vement strategy, acquired properties encompass property trading and Hufvudstaden has Sven-Göran Svensson, Christer Nerlich, are to have better growth prospects property management. Kungsleden’s long experience Peter Östman, Sheila Florell, Cecilia and greater future potential than exis- strategy is to create high, sustainable of preserving Söderström and Krister Larsson. ting managed properties. returns from its property holding. Its and developing AP Fastigheter acquired Vasakronan Fabege has a staff of 140 persons, goal is to achieve satisfi ed customers properties. The during 2008 and since September 1, the management team is Christian through the active management company was 2008 Vasakronan is a part of AP Fastig- Hermelin, President and CEO, Roger Jo- and enhancement of its proper- Ivo Stopner founded back heter. In the autumn of 2008, work will hansson, Deputy CEO and CFO, Anders ties. Its care, school and retirement in 1915 and was commence to create the new com- Hörnqvist, Deputy CEO and Director home property types have special listed on the Stockholm Stock Exchange pany that will be called Vasakronan. of Properties, Mats Berg, Director of requirements, where Kungsleden in 1938. From the very outset the Communications. Market value of has evolved into a leading player. Stockholm region has always been a Diligentia the property stock year 2006 was SEK Kungsleden has a fl exible organiza- principle market and in 1940 the com- Diligentia, one of 27,2bn. The transaction volume for year tion with secure local support and pany owned a total of 68 properties, of Sweden’s largest 2006 amounted to SEK 28 bn, of which substantial property transaction which 60 were in Stockholm and the real estate com- sales totalled SEK 12 bn and purcha- skills. Since its initial public off ering in remaining eight located in diff erent panies, develops, ses SEK 16 bn. As of December 2006 1999, Kungsleden has enjoyed robust provincial towns. The involvement manages and Fabege acquired Orgeln 7, a 27,000 growth of its property portfolio and with Gothenburg commenced in 1967 rents properties sq.m property in central Sundbyberg in profi ts. End of June, 2008 Kungsleden with the acquisition of three centrally throughout Stockholm for SEK 370 m. In September had 609 properties with a book value located properties. Per Uhlén Sweden’s three 2006 Fabege sold 46 properties mainly of SEK 28,7 billion. Its growth property International expansion with an ini- growth regions: Stockholm, Gothen- in Kista and Täby for SEK 4 bn. types are commercial properties, care tial focus on Tokyo commenced in 1970, burg and Malmö. They focus on three properties, schools, retirement homes followed by further acquisitions in Paris, distinct business areas – Offi ce space, Klövern and modules. The management team London and Berlin. Foreign interests Retail/Commercial properties and The listed pro- is Thomas Erséus, Johan Risberg, were divested in 1997. NK Cityfastighe- Residential buildings – each of which perty company Lars Thagesson, Eskil Lindnér, Göran ter AB was acquired in 1998 and in 1999 demands its own specialized know- Klövern shall with Linder, Åke Theblin, Cecilia Ganne- the operating focus was the central ledge and expertise. Though they run commitment dahl, Per Johansson and Albrecht von parts of Stockholm and Gothenburg. these business segments independent- meet the Malortie. Hufvudstaden’s business idea states ly to accommodate their specialized customer’s needs that in premises in central Stockholm demands, the end result is a unique Gustaf Hermelin of premises Vasakronan and central Gothenburg off er successful combination of property portfolios that and services in Vasakronan is companies high-quality offi ce and retai- complement and balance one another. Swedish growth regions. The business the leading pro- ling premises in attractive marketplaces. Diligentias mission is to contribute to is organized in ten units. Klövern’s perty company By mid-year 2008 the value of Huf- their commercial customers’ business business model emphasises orientation in Sweden. Its vudstadens properties was SEK 20,1 success and ensure a safe and comfor- toward the development of commu- strategy is to billion. Hufvudstadens currently have table living environment for all their nity strength. Klövern has a vision of focus on satisfi ed a staff of cirka 100 co-workers with the residential tenants. Diligentia supplies creating the communities of tomorrow. customers and CEO being Ivo Stopner. about 1 400 000 m2 of commercial Klövern’s personnel work according to Håkan Bryngelson develop its pro- space as well as 6000 attractively situa- the motto of ”making the customer’s perty portfolio, which is concentrated Landic Property ted fl ats. The management team is Per day easier every day”. Klövern’s ten units to Stockholm, Göteborg, Malmö, Landic Property Uhlén, Göran Langer, Markus Pfi ster, ensure the day-to-day management of Lund and Uppsala. Vasakronan owns specializes in Torbjörn Hugosson, Bo Jansson, Sven- the properties. These units are located and manages a total of 172 com- leasing services Åke Persson, Helena Lundborg, Jan in diff erent parts of Sweden based on mercial properties with a combined of real estate pro- Thelander, Michael Wessel and Marita the geographic location of the proper- area of 1,850,000 m2. Vasakronan has perty to public F Hellsten. ties with the aim of being in close pro- Sweden’s largest project portfolio and corporate ximity to the tenant. The market value with development projects valued at customers. Landic Tommy Sundbom Fabege of Klövern’s properties was at the end of approximately SEK 10 billion. Many of Property off ers Fabege is one of June 2008 SEK 12.2 billion and the com- the properties are situated in clusters to let prime location offi ce and retail Sweden’s leading pany comprise a staff of 129 co-workers. and the business model off ers supple- premises from one of the largest pro- property compa- Klövern’s management team is headed mentary services through Vasakronan perty portfolios in the Nordic countries. nies, focusing on by Gustaf Hermelin, Britt-Marie Einar, Service Partner. Vasakronan has the Landic Property is one of the largest commercial pro- Thomas Nilsson, Mattias Rickardsson , property industry’s most satisfi ed property companies in the Nordic perties, and a sig- Per-Gunnar Sabel and Caesar Åfors. tenants according to the Satisfi ed countries. The company has substantial nifi cant property Customer Index (NKI). market shares in Sweden and Denmark Christian Hermelin development Kungsleden AP Fastigheter acquired Vasakronan and is the market leader in Iceland. Lan- player. Its operations are concentrate Kungsleden is a during 2008 and since September dic Property has six business units: strongly on a small number of sub- Swedish property 1, 2008 Vasakronan is a part of AP • Four geographical real estate ma- markets with a high rate of growth in company that Fastigheter. In the autumn of 2008, nagement units in Sweden, Iceland, the Stockholm region. Fabege manages views returns as work will commence to create the Denmark and Finland. and improves a well-positioned pro- more important new company that will be called • Landic Investment - Mediation of perty stock, while the property portfolio than pro- Vasakronan. investment properties in Northern is constantly developed through sales Thomas Erséus perty type and Europe.

38 FASTIGHETSSVERIGE #6/2008 [ Xxxxxx av Eddie Ekbergg ]

• Landic Funds - Off ering investment dent market indices and portfolio works for a more property friendly The mission of the Urban Land opportunities in real-estate for institu- benchmarks to the property industry. climate on their respective homemar- Institute is to provide leadership in the tional investors. IPD collects full portfolio records from kets. responsible use of land and in creating • Landic Property was formed in July over 500 major property investors Throughout the years SIPA has and sustaining thriving communities 2007 when the property company across 21 countries - in a database developed to be a natural partner for worldwide. Stoðir, founded in 1999 by Baugur capturing over 50,000 properties with foreign investors to fi nd their way into Members say that ULI is a trusted Group and Kaupthing Bank, acquired a market value of almost € 2,000bn. the Nordic property markets. idea place where leaders come to Keops A/S - a Danish listed property IPD’s system is then used to deliver The SIPA members represent the grow professionally and personally company from 1998 until 2007. Stoðir benchmarking and portfolio analysis largest and most important property through sharing, mentoring, and pro- already owned the property company services to real estate investors and as- actors on the Nordic markets. The blem solving. With pride, ULI members Atlas Ejendomme which was acquired set managers. In 2002, IPD Norden was majority of the members are coming commit to the best in land use policy in January 2006. set up as a subsidiary of IPD in Stock- from Denmark, Finland, Norway and and practice. • The company has approx. 200 em- holm. It off ers a full range of compa- Sweden. The total property value ULI Sweden was founded 2005 with ployees and roughly 500 properties in rative products to clients, including represented by the majority of SIPA’s the purpose to off er a powerful and Sweden, Denmark, Iceland and Finland. standard and bespoke benchmark members exceeds EUR 60 billion. SIPA interesting forum for discussions in • The property portfolio totals 2.6 mil- reports. IPD has more than 60 clients have 46 members. SIPA’s MD is Elinor the society and real estate area. lion square meters of rental space and in the portfolio analysis service in Fors. The chairman of ULI is Max Barclay, more than 3,400 tenants. Sweden, Denmark and Norway. IPD’s Head of Communications and Interna- Pan-Nordic services include Nordic Invest in Sweden Agency (ISA) tional operations på Stronghold. Castellum Index with a Nordic overview and a Invest in Sweden Castellum is one Pan-Nordic Portfolio Analysis Service. Agency (ISA) is The Swedish Property Federation of the major In Sweden IPD off ers a specialized the government The Swedish listed real estate tool for private and municipal holders agency promoting Property companies in of residential portfolios. It provides a business and in- Federation is an Sweden ope- detailed analysis of property income vestment opportu- interest based rating solely in and costs to report internally and nities in Sweden to organization and Susanne Roglar Håkan Hellström this sector. The externally. IPD coordinates around foreign investors. trade association properties are ten events in the Nordic countries Professional guidance is guaranteed Per-Åke Eriksson that promotes owned and managed by six subsidia- each year. The type of events held since most of the staff have corporate a smoothly ries with strong local roots in their re- varies from conferences, valuations backgrounds and extensive expertise functioning real estate market. Our spective markets. The Castellum share seminars, briefi ngs, training courses in the investment process. 20,000 members – organized in one is registered on OMX Nordic Exchange and launches. IPD Norden has a team With a staff of 70, ISA provides of Sweden’s 7 regional property asso- Large Cap. of seven in Stockholm. The MD for the services to investors from its offi ces ciations – are owners of premise and Castellum holds a real estate port- Nordic Region, based in Stockholm is in Sweden, the US, Japan, China and apartment rental buildings, industrial folio with a fair value of approx. SEK 29 Christina Gustafsson. India. Throughout the world, ISA properties and tenant owners’ as- billion and a total lettable area, mostly cooperates with Swedish embassies sociations. We are by far the largest commercial premises, of approx. 3.1 SIPA and consulates. property owners’ organisation in million square metres. Scandinavian Head of the Real Estate project is Sweden. This means we can both as- Operations focus on cash fl ow and International Pro- Susanne Roglar. sist the individual members and have earnings growth, which provide the perty Association the ability to infl uence the society to preconditions for good, long-term is an exclusive ULI promote private property ownership. growth in the company, while share- organization for ULI-the Urban The objective of the Federation is to holders can be off ered a competitive major property Land Institute make management of property in dividend. Elinor Fors investors with is a non-profi t private ownership a more effi cient and interests in the research and generally better reputed line of busi- Nordic countries and was established education organi- ness, that off ers improving service to in 1989. SIPA off ers a unique network, zation supported tenants. The Federation represents the combining the members’ outstanding by its members. private property owners’ interests by ORGANISATIONS knowledge of the property markets Max Barclay Founded in means of contact with politicians and and the excellent experience from 1936, the institute now has more than the mass media, courses, conferences IPD the members’ investments across the 34,000 members worldwide represen- and furthered by giving advice on eco- world. ting the entire spectrum of land use nomic, legal and technical issues. One The Association is exclusive and and real estate development discipli- of the primary tasks for the Federation open only to those that through their nes, working in private enterprise and is to educate and improve the mem- size or their activity type can play a public service. bers so that they are well prepared essential role on the North European As the preeminent, multidisciplinary for their business. The Federation also property markets. real estate forum, ULI facilitates the initiates and supports research and SIPA off ers a unique gateway for open exchange of ideas, information development activities within the those that are interested in the dyna- and experience among local, national property fi eld. The Swedish Property Management team mic property markets in the Nordic and international industry leaders and Federations MD is Per-Åke Eriksson. countries. policy makers dedicated to creating IPD is a global information business, The Association and its members better places. dedicated to the supply of indepen-

#6/2008 FASTIGHETSSVERIGE 39 [ A view of Swedish architecture by Nicklas Tollesson ]

Sweden’s star architect talks about Swedish architecture “We build for functional

Swedish architecture does not stand espe- – Th is is not viewed with much favour among architects, but cially high in the rankings in architectural it carries greater respect in property-owning circles,” Gert Win- circles in the rest of Europe – but it is valued gårdh says. “Th e strength of Swedish architecture is that we build for functional and economic effi ciency. We produce reliable de- more highly by property owners. signs with a clarity of form. Our weakness is that we seldom un- Here Gert Wingårdh, Sweden’s most success- dertake the real top-of-the-line projects that are visually striking. ful architect of recent years, gives his views Th at’s because it’s unusual for Sweden to commission properties that are going to cost more than 20 000-25 000 kronor per squ- on Swedish architecture’s advantages, down- are metre. One exception is Turning Torso in Malmö, which cost sides – and problems. three times as much as most other Swedish buildings. And the result is wonderful! Th e countries whose architects get the most publicity in the ma- One area where Swedish architecture is in the top class is in jor European architectural magazines are Switzerland, Holland, working environments. England, Spain and Austria. Swedish architecture lies low on the – We are well in contention when dealing with large compa- list. Gert Wingårdh smiles wryly as he says that Sweden as an nies like Astra Zeneca, Ericsson ad Volvo. Our way of organising architectural country may well rank somewhere “a tad ahead of workplaces in a social manner is exceptional. More and more Moldavia”. large international groups are discovering that we have qualities Wingårdh is in a class apart as the most successful archi- in this fi eld that the USA, for example, cannot match. When we tect in Sweden of the last 20 years, and the only one to have undertook Astra Zeneca’s fi rst laboratory in the USA in 2001, achieved celebrity status outside architectural circles. If you ask with a lot of areas for informal meetings, we immediately won an ordinary Swede in the street if he can reel off some Swedish the ‘Laboratory of the Year’ award. architects he will almost certainly answer ‘Gert Wingårdh’ fi rst – But workplace buildings are rarely particularly spectacular and and will stop there. consequently attract no attention or publicity in the architectural When Wingårdh won the most recent Kasper Salin Prize – the magazines. leading Swedish architecture prize – for the Swedish embassy in Gert Wingårdh says that Swedish architecture is advancing Washington, the ‘House of Sweden’, it was the fi fth time that he and there are many interesting projects in Sweden, but that not had secured the Prize. And two of the four buildings nominated enough is being done to reach out into Europe. this time were signed Wingårdh. – We are too poor at making Swedish architecture visible. But even though he is by far the brightest star in the Swedish Th ere is no natural culture of marketing here. When an interes- architectural fi rmament, he still has low – if indeed any – status ting building is produced elsewhere in Europe a book is always elsewhere in Europe. printed describing the building and its architecture. In Sweden it – No, none at all, he says laconically. is not an obvious move to do this, even for the most outstanding His low standing in architectural circles is due to the fact that projects. We lag a long way behind here. Swedish architecture normally avoids the spectacular. – Th ere are a lot of good projects in Sweden that gain no credit.

40 FASTIGHETSSVERIGE #6/2008 [ Xxxxxx av Eddie Ekberg ] and economic effi ciency”

GERT WINGÅRDH Age: 57 Homes: An apartment in central Gothenburg and a villa outside Kungälv Family: Married to Karin for the last 18 years. Two children from his fi rst marriage, one from the second, and two stepchildren Started his own architectural practice: 1977 Architectural heroes: Jacques Herzog & Pierre de Meuron and Peter Zumthor (all from Switzerland). Internationally best-known work: ‘House of Sweden’ – the Swedish embassy in Washington The work he is most pleased with: The Universeum science centre in Gothenburg and the control tower at Stockholm’s Arlanda Airport

SPECTACULAR WINGÅRDH PROJECTS: Dalsland Lodge. A spectacular 60-room hotel on a bridge over a lake inlet in Dalsland. The idea is for the combination of detached luxury and convenient access by train and boat from the airports at Gothenburg and Oslo to attract an international clientele for a short but exclusive vacation. The lodge contains about 60 rooms, bars and a restaurant. Focus is put on water sports. As an image of this, water encloses the visitor. The wet building merges with the lake outside. The transparent bottom of the aquarium is the restaurant’s ceiling. On top of this is a pool from which water keeps pouring over the edge and down the windows.

Björntanden. A hotel and conference centre on the Östberget mountain in Jämtland. The mountain will be enhanced by large teeth shining in every direction. Placed in the existing ravine on the ridge are a hall and arena with seating for 3000 people to enjoy concerts, sports events or opera. Other parts of the building will involve a science centre, a Lapp centre, exhibitions and activities, set on the natural terraces of the mountain. A wide roof spans it all, in the summer grass-clad, in winter a snowy point of departure for the mountain’s extensive ski-slope system. Organically shaped lanterns protrude through the roof, lighting up the interior below. The highest glass peak is a hotel with 200 rooms, providing a view of the country for miles.

Citadellbadet. A swimming complex in Landskrona. Sky and pools are mirrored in the running water. The wet glazing of the facades glitters in shades of blue, suggesting the shimmering light of the sea. The sea is glimpsed through slits in the building, and the tapering media tower alludes to the city’s distinctive water tower. #6/2008 FASTIGHETSSVERIGE 41 Bonniers art gallery, 2004 – architect Johan Celsing. Eos housing cooperative in Helsingborg, 2000 “A modern Stockholm silhouette and an attractive public space. – architect Anders Wilhelmson. Consistent architecture of both the interior and exterior.” “A truly idiosyncratic building – a billowing terrace [ Xxxxxx av Eddie Ekberg ] with sloping corrugated elevations.”

THE MOST OUTSTANDING ARCHITECTONIC MASTERPIECES IN SWEDEN, ACCORDING TO GERT WINGÅRDH:

Interior of the Museum of World Culture, Gothen- burg, 2004 – architects Brizac and Gonzalez (a London-based architectural practice) “A very beautiful sequence of stairs, with a broad, fl at staircase turning into a narrower, steeper staircase in a spiral motion through the building. The ceiling and the concrete castings are also fi ne.”

Sankt Petri church in Klippan, Skåne, 1966 – architect Sigurd Lewerentz. “Together with the extension of Gothenburg City Hall (1936 – architect 42 Gunnar Asplund) is this generally regarded as the leading works in Swedish FASTIGHETSSVERIGE #6/2008 architectural history. Nothing of the period can match them.” I don’t know how large a circula- Te^qÑpqebhbv tion the Swedish architectural magazine has abroad, but there qlvlropr``bpp< is one magazine in each of the Nordic countries. It might be easier to reach out with a Nord- ic joint venture and one large Nordic magazine. And I don’t think the Swedish magazine ‘Svensk Arkitektur’ would be the obvious choice here. What do 2.6 million square metres, 635 thousand How do you feel that Europe- light bulbs, 220 thousand doors, 215 thousand parking Gert Wingårdh is far-and-away ans view Swedish architec- spaces, 3,200 rental spaces, 730 elevators, 190 Sweden’s most successful archi- ture? employees and 4 countries have in common? A single tect of the last 20 years. But his – I feel they know very little about company, Landic Property, links all of these. Landic international standing is negli- it. It has not received enough pu- gible. “In Sweden we fi nd it hard Property’s main business is in Iceland, Sweden, Den- to put across what is happening blicity to make them take a look. mark and Finland, and the company specialises in here,” Wingårdh says. But he But when I give lectures all over renting out office and retail premises. thinks that a lot is going on in Europe – for example when I was Sweden and that the country’s The tax authorities, the law courts, the police and in Hamburg and Munich recent- reputation among European Stockholm County Council are the largest tenants in ly – people often react by saying architects is on the rise. Sweden. We also have the Swedish big businesses “Th at was interesting. Why did Telia, Sonera, Ericsson, Swedbank and Nordea Bank we know nothing about it before?” And that’s the point. A lot of amongst our clients. interesting things are happening in Sweden but we fi nd it hard As might be expected, our properties vary in age. to put that across.” Some of Landic Property’s assets are only a few months Which projects excite the Europeans when you talk about old, while some are still at the design stage or exist them? only as an idea in the imagination of an employee. – Dalsland Lodge, Björntanden and Citadellbadet (see the panel) Other assets date from hundreds of years ago and are always provoke interesting discussions. historic buildings. While we run operations in four countries, the goal How do you view your Swedish colleagues? is always the same: excellent service to our tenants and – Th ere are a lot of young architects who are currently doing the continuing growth of the company. good things, like Bolle Th am and Martin Widegård Hansson, Where assets are concerned it is easy to get lost in who have designed the Kalmar Art Museum for example and statistics. The catalogue of Landic Property’s assets are about to undertake the School of Architecture in Stockholm. is, however, to demonstrate that, although like all Th ey work with clarity and a graphically distinctive look. Th ere companies we started small, today we are huge. is also a new generation at the architects White, who won the Of course, most of the things we do are based around competition for the Victoriahuset natural heritage visitor centre concrete, steel, glass, bricks, timber and paintwork. on Läckö and who achieve elegance and clarity in what they do. But what concerns us most at Landic Property are the Gert Wingårdh believes that interest in Swedish architecture thousands of individuals, office workers, civil servants, and the Swedish market is on the way up. trades people, policemen and hotel guests who fill our We can see a clear sign that the bar has been raised if we look buildings with life every day. They, along with nearly at the competition to develop the Slussen area in Stockholm, two hundred creative and energetic employees who which includes two true world fi gures, Jean Nouvel and Norman ensure the continuation and reputation of the company, Foster. It is something new for two names such as these to be are the key to successful teamwork. interested in Sweden. Th e winning design for Slussen will be announced in Octo- ber. Th e world names are fi ghting against three adversaries for the honour of developing Slussen – and one of the three is Gert Wingårdh.

www.landicproperty.se [ XxxxxxAnalysis av by Eddie Eddie Ekberg Ekberg ] ]

What do the autumn and

What is happening to interest rates, rents, vacancies and yields? We have put these questions to three expert analysts with extremely good insight into the Swedish property market.

How will international investments into Sweden develop in GUSTAV BENNDORF the autumn and winter of 2008/2009? Jones Lang LaSalle Th e proportion of cross-border transactions has fallen in 2008 compared to 2007. Th e probability is that the international in- How will the interest rate deve- vestors as a group will adopt a wait-and-see attitude, which is lop in the autumn and winter of not preventing many of them from actively seeking investments. 2008/2009? Sweden remains high on the list for interesting investment opp- We follow interest-rate predictions ortunities. closely but do not publish our own forecasts. As infl ation pressure ebbs away, so the scope increases for the PER WIESLANDER Riksbank to follow central banks in NAI Svefa other countries and start to lower the rate. Most analysts estimate that this may happen in spring 2009. How will the interest rate deve- lop in the autumn and winter of How will vacancies develop in the autumn 2008/2009? Vacancies will and winter of 2008/2009? We expect that the Riksbank will de- continue to fall to Vacancies will continue to fall to some degree cide during the autumn to let the repo during the autumn before then starting to rise rate remain unchanged for the rest of some degree during slowly in 2009. But we won’t see any large fl uc- this year. In the course of next year we the autumn before tuations. Once again it will be unmodernised pre- forecast that the rate will be lowered in then starting to rise mises in isolated locations that will be worst hit. response to steadily falling infl ation. Our expectation is that we will see several reductions of the rate during the coming year. slowly in 2009. How will yields develop in the autumn and winter of 2008/2009? How will vacancies develop in the autumn and winter of Direct yield requirements will continue to rise in all property seg- 2008/2009? ments and on all submarkets. According to Jones Lang LaSalle’s We expect the past fall in vacancy rate to level out during the forecast, higher direct yield requirements, especially for secondary autumn and that we will see moderate increases in vacancy rate properties, are to be expected during 2008 in conformity with early next year. previous signs of economic decline.

44 FASTIGHETSSVERIGE #6/2008 winter hold?

How will yields develop in the autumn and winter of 7HENINVESTING 2008/2009? Our judgment is that yields will continue upward, partly because INTHE.ORDICREGION of higher interest rates but also because of impaired borrowing opportunities and aversion to risk among investors. We will also -ˆ˜ViÊ£™™{]Ê
Ê >ÃÊLii˜Ê>Ê«>À̘iÀÊ̜ʓœÀiÊÌ >˜Ê£ääÊ Ài>ÊiÃÌ>ÌiÊVœ“«>˜ˆiÃʈ˜ÊÌ iÊ œÀ`ˆVÊÀi}ˆœ˜Êˆ˜ÊÃÌÀ>Ìi}ˆVÊ see the largest yield increases for poorer properties in poorer lo- >˜`ʜ«iÀ>̈œ˜>Ê`iVˆÃˆœ˜‡“>Žˆ˜}° cations while the changes will be smaller for properties in better locations in particular. /œ`>Þ]Ê
Ê>`ۈÃiÃʜÛiÀÊÈäÊVˆi˜ÌÃʜ˜ÊÌÀi>ÃÕÀÞÊ>˜`Ê w˜>˜Vˆ>Ê“>˜>}i“i˜ÌÊÜˆÌ Ê«œÀÌvœˆœÃʈ˜ÊiÝViÃÃʜvÊ €ÓäL˜Ê>˜`Ê>ÃÈÃÌÊVˆi˜ÌÃʈ˜ÊÌÀ>˜Ã>V̈œ˜ÃʜÛiÀÊ€ÓL˜Ê Þi>ÀÞ°Ê-iÛiÀ>ÊœvÊÌ iÃiÊVˆi˜ÌÃÊ >ÛiʜÕÌÜÕÀVi`ÊÌ iˆÀÊ High-leveraged investors have largely i˜ÌˆÀiÊÌÀi>ÃÕÀÞʜ«iÀ>̈œ˜ÃÊ̜ÊÕðÊ

disappeared from the market. "ÕÀʈ˜`i«i˜`i˜Vi]ÊÃÌÀœ˜}Ê>VViÃÃÊ̜ʏœV>Êw˜>˜Vˆ>Ê “>ÀŽiÌÃÊ>˜`ÊÕÃiʜvÊÀi>Ê̈“iʓ>ÀŽiÌʈ˜vœÀ“>̈œ˜Ê i˜ÃÕÀiÊÌ >ÌʜÕÀÊVˆi˜ÌÃÊ}iÌÊÌ iÊLiÃÌÊw˜>˜Vˆ>Ê܏Ṏœ˜ÃÊ How will international investments into Sweden develop in >Û>ˆ>Li°Ê ÞÊÕȘ}ÊÌ iʏ>ÌiÃÌÊÌiV ˜œœ}ÞÊ>˜`ÊȓՏ>‡ the autumn and winter of 2008/2009? ̈œ˜ÊÌiV ˜ˆµÕiÃ]ÊÜiÊV>˜Ê i«ÊVˆi˜ÌÃÊ̜ʜ«Ìˆ“ˆÃiÊÌ iˆÀÊ i`}ˆ˜}ÊÃÌÀ>Ìi}ˆiÃʈ˜ÊVÕÀÀi˜VÞÊ>˜`ʓœ˜iÞʓ>ÀŽiÌð Our prediction is that international interest will remain strong but that the number of transactions completed will not reach the /œÊi˜ÃÕÀiÊÌ >ÌÊLiÃÌÊÛ>ÕiʈÃÊ>V ˆiÛi`ÊÜiÊÃÕ««œÀÌÊ levels seen in recent years. We note that the proportion of foreign œÕÀÊVˆi˜ÌÃÊÜˆÌ Êœ˜}œˆ˜}Ê>˜>ÞÈÃ]ÊÀi«œÀ̈˜}Ê>˜`Ê investors has fallen dramatically during the fi rst half of the year Li˜V “>ÀŽˆ˜}ʜvÊÌ iˆÀÊ«œÀÌvœˆœÃ°7 i˜ÊˆÌÊVœ“iÃÊÌœÊ compared with last year. High-leveraged investors have largely w˜>˜Vˆ˜}Ê>˜`ÊÀˆÃŽÊ“>˜>}i“i˜Ì]ÊV œœÃiÊ
Ê>ÃÊޜÕÀÊ disappeared from the market and in their place other investors ˆ˜`i«i˜`i˜ÌʏœV>Ê«>À̘iÀ° and institutions with a large proportion of their own capital have œ˜Ì>VÌ\ been active during the fi rst half-year. ˆ˜ÕÃÊ ÀˆVÃܘ >“iÃÊ*>Àܘà that they would like to increase their property holdings in Swe- JAN ROSENGREN den. Th is applies to both Swedish and international investors. DTZ However, the diffi culties of the credit market mean that many of the previously active foreign opportunistic buyers no longer have How will the interest rate deve- the capability to acquire properties. We can also expect some of lop in the autumn and winter of them to reduce their property holdings. On the other hand we 2008/2009? are seeing that new international capital from the Middle East, In general DTZ does not make its Asia, Australia and even the USA and Canada is showing interest own forecasts or judgments on how in property investments in Sweden. Uncertainty about where the interest rates, GNP or employment market is heading means that many are still biding their time, will develop. Our forecasts for the though. In the short term, therefore, it will be Swedes – mainly property market (both the rental and institutions and other buyers with a highg contribution of their investment markets) are based on a consensus of forecasts from own capital – who dominate oonn the buying side. banks and forecasting institutes. Most analysts are confi dent of an interest-rate reduction in 2009, and this forms the basis for our property-market predictions. Yields will continue upwards during the autumn and winter How will vacancies develop in the autumn and winter of 2008/2009? of 2008/2009 and probably for Th e rental markets in the major cities have continued to advance several more years. during the year. Employment in the offi ce-intensive sectors is continuing to rise. For at least the remainder of 2008 we expect demand to be well-matched to future supply, with vacancy ra- tes continuing to fall. Although the demand for offi ces comes mainly from domestic companies, we are now seeing that the global downturn in the economy is causing many companies to hesitate to expand their offi ce space. In the next few years we expect vacancy rates to rise as new offi ce projects are completed at a time when employment growth in the offi ce-intensive sectors will be relatively low.

How will yields develop in the autumn and winter of 2008/2009? Yields have been rising on several markets since a year ago, and more generally since the start of 2008. Even though underlying interest rates may be reduced during 2009, lenders will continue to be restrictive and their interest margins high. Together with lowered expectations of rental growth this will lead to yields con- tinuing upwards during the autumn and winter of 2008/2009, and probably for several more years.

How will international investments into Sweden develop in the autumn and winter of 2008/2009? A majority of the investors on the Swedish market have stated

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eeeW_cPSaS [ Vasakronan by Nicklas Tollesson ]

EUROPE’S LARGEST PROPERTY DEAL OF 2008

41.1 billion kronor. That is what AP Fastigheter paid for the state-owned company Vasakronan in Europe’s largest property transaction of the year so far and the lar- gest transaction ever in the history of the Swedish property market.

Th e sale of Vasakronan really began on Sunday 17 September 2006 when the four-party centre-right coalition (the Moderate Party, Christian Democrats, Liberal People’s Party and Centre Party) won the Swedish general election. Whether the state should run businesses that could instead be run by private enterprise is an issue that politicians of the left and right blocks have argued about for generations, and when the Social Democrats were defeated in the polls, it was soon made clear that the Swedish state was preparing to sell a number of state-owned companies.

IT WAS THE CHRISTIAN Democrat Mats Odell, in his capacity as Minister of Local Government and Financial Markets, who found the issue of sales on his desk. In December 2006 the Go- Mats Odell. vernment announced that it intended to reduce its level of ow- nership in the bank and capital manager Nordea, the OMX stock exchange, the residential mortgage lender SBAB, the telephone profi table company that gave a large payback to the state, a lot of operator TeliaSonera, the alcohol giant Vin & Sprit – and Vasa- money was saved by selling it. kronan. – Th e 2007 dividend from Vin & Sprit was the largest we have Th e argument put forward by the Government and Mats Odell ever received – 800 million kronor. But now that we have sold it was simple: and can pay down the national debt we are reducing the state’s – Th e state should be devoting itself to things other than distil- costs by 2.2 billion kronor a year. Th at’s how it should be viewed, ling spirits and leasing offi ces. said Minister for Financial Markets Odell in an interview with Naturally economic considerations were also involved. Th e Fastighetssverige last spring. Government’s purpose has always been to use the money that At the start of the process it was not clear how the sale should comes in to pay down the national debt. Vin & Sprit was sold at be handled: whether the whole company should be sold as one, the end of March for 55 billion kronor. Although this was a highly whether it should be split up and sold in parts or whether it

48 FASTIGHETSSVERIGE #6/2008 BRIEF FACTS ABOUT THE DEAL: • AP Fastigheter is buying Vasakronan in a deal that values its property stock at 41.1 billion kronor. • The purchaser will assume net debt and other obligations valued at a total of 16.5 billion kronor. • Payment for the shares is 24.6 billion kronor, including interest from 1 January 2008 to the acquisition date of 1 September. • The state is selling its shares in Civitas Holding AB, which is the parent company of Vasakronan AB. • The state intends to use the purchase price to pay down the national debt. • The acquisition is fully fi nanced by equity capital and a num- ber of Nordic banks. • JP Morgan were the state’s fi nancial advisers, Cederquists Advokatbyrå their legal advisers and Öhrlings Pricewaterhous- eCoopers their advisers on accounting matters. • MAQS Advokatbyrå were legal advisers to AP Fastigheter and Lenner & Partners their fi nancial advisers.

41.1 termsterm ... Early in 2008 interest rates rose and the banks became billion kronor moremore restrictive in their lending. In the end there were now ‘only’ twotwo interestedi parties left: an American consortium consisting of Blackstone,Bla Whitehall and Areim, and the Swedish property companycompan AP Fastigheter, owned by Swedish National Pension FundsFunds AAP 1–4.

THE DEAL TOOK LONGER to fi nalise than was fi rst ex- should be launched on the stockstock exchange.exch When Håkan Bryng- pected, but on 3 July this year the ‘pre-race favourite’ AP elsonelson was recruiterecruitedd to ttheh post of Managing Director of Vasa- Fastigheter was announced as the buyer of Vasakronan. kronankronan iinn 1996, one of his assignments was to bring the company Th e purchase price of 41.1 billion kronor was viewed by to the stock market. In many respects, too, the company was ripe most people as a price-tag clearly acceptable to the state for a stock market launch – but the plans were dashed when the in present circumstances, even though the market value of its economic situation weakened dramatically in the wake of the US properties in March this year totalled 46.1 billion kronor. credit crisis. Quoted property companies on the Stockholm stock – We can announce a deal that is good for Vasakronan and exchange fell, and share prices soon lay well below the companies’ good for the Swedish economy, Mats Odell commented. AP intrinsic value. Th e stock-exchange dreams for Vasakronan were Fastigheter is a serious long-term owner. Th ey put in an off er abandoned in autumn 2007. that by general judgment is the best, and that represents the hig- her price of the two fi nal off ers. Th e deal also means that the AP THE TIMING OF THE sale has been discussed – had it been car- funds are improving their investment profi le, to the benefi t of ried out a year earlier when the market was still at its peak; had present and future pensioners. (presumably) more bidders succeeded in getting fi nance on better – Th is was a unique opportunity to acquire a very attractive

#6/2008 FASTIGHETSSVERIGE 49 We have high ambitions and the best possible circumstances to develop Sweden’s best property company. Fredrik Wirdenius 41.1 billion kronor

and well-managed property company with professionalnal staff anandd – Th is transactiont can be a property stock that is in line with our own location strategy,trategy, ssaidaid viewed as part of the ac- Lennart Nilsson, Chairman of AP Fastigheter. Th e combination quisition of the whole of of AP Fastigheter and Vasakronan, now with long-term Swedish Vasakronan, although it owners, is good for tenants, business, society – and for our owners, was not a condition from which means all of us whose pension capital is managed by the our side, Fredrik Wir- AP funds. denius said. During the To take advantage of Vasakronan’s well-known and respected bidding process we recei- Håkan Bryngelson. brand name, AP Fastigheter will change its name to Vasakro- ved an interesting propo- nan. sal from Niam which we have crystallised once the main deal was done. Th e sale gives us MANAGING DIRECTOR OF the new enlarged company will be AP the opportunity to reduce our portfolio to some degree, and the Fastigheter’s Managing Director Fredrik Wirdenius, who joined properties sold off were not those that we gave top priority to in AP as recently as the start of this year after being recruited from our purchase of Vasakronan. Skanska. Work to build up the new company is now in progress. After – We have high ambitions and the best possible circumstances the sale to Niam it owns 327 properties with 3.4 million square to develop Sweden’s best property company, Fredrik Wirdenius metres of commercial and residential space. Th e stock is worth says. around 80 billion kronor. AP Fastigheter has both virtues and downsides as a buyer of Vasakronan. On the political front, opponents of state sell-off s HÅKAN BRYNGELSON WILL remain Managing Director of Vasa- view AP as a good buy- kronan until the end of October this year but will not take on any er, since it is owned by new operational assignments. the state pension funds. – I will support Fredrik Wirdenius in his work initially, but On the other hand, the in the longer term I will not be staying at Vasakronan, Bryng- same fact is open to cri- elson says, adding that he is pleased with the choice of AP as ticism: it can appear that buyer. the state has just moved – I couldn’t be more pleased. It was the best solution. Vasakronan from one Vasakronan offi cially became part of AP Fastigheter on 1 Sep- Fredrik Wirdenius. pocket to another – the tember. Th e business will initially be managed as two separate state selling to the state. Another objection is that AP Fastigheter companies but the aim is to integrate both companies into a joint obtains an enormously dominant position in many parts of Swe- company under the Vasakronan name. den. However, the Competition Authority’s scrutiny of the deal – Th e accumulated knowledge and experience of our employ- resulted in unconditional approval. ees, in combination with the property stock that we now have, After the deal, AP Fastigheter sold part of Vasakronan’s pro- gives us a fantastic launching pad to build Sweden’s best property perty stock to Niam for 7.1 billion kronor. company by far, Fredrik Wirdenius says.

50 FASTIGHETSSVERIGE #6/2008 * [ Close-up by Nicklas Tollesson ] CHIMNEY-SWEEP’S BOY becomes Regional Director

He was born into a chimney-sweeping family but decided to become a lawyer when he was only ten. Now he is the Regional Director for Northern Europe at GE Real Estate. Meet Lennart Sten, a Managing Director with a passion for hunting – and roses.

Lennart Sten has a rather unusual background for one of the But the tsunami tragedy in Asia intervened. GE Real Estates’ leading fi gures in the property industry. As a child he lived in then Managing Director Lennart Weinz was one of the 543 Swe- Biskopsgården, a suburb of Gothenburg that later became one of des who lost their lives. Sweden’s worst problem areas. His father was a chimney-sweep, – When it became clear that he had died, GE contacted me. I as was his grandfather and his great-grandfather. At the age of had a good discussion with Niam’s President Urban Edenström and eight Lennart Sten moved with his family to Tynnered at the GE’s European chief Olivier Piani, and things were soon resolved. other end of Gothenburg, and when little Lennart was only ten years old he decided to become a lawyer. What was it like to take on the Managing Director’s post con- – I don’t really know how it came about, but I made the resolu- sidering the special circumstances? tion then. I’ve come to realise of course that it is very unusual to – What happened to Lennart Weinz was a huge loss for me per- be determined on something so early and then to achieve it. My sonally. I worked with him when I was a lawyer back in the 1990s. youngest lad will soon be ten and he has really decided nothing We were hunting friends and spent a lot of time together privat- yet, Lennart Sten muses. ely. For me, returning to GE after he met with his accident was He did indeed work as a lawyer before joining GE in 1997, only a small part of what his loss meant. where he became Managing Director a couple of years later. Up to a couple of months ago Lennart Sten was Director of After a move to Fabege – which was bought by Wihlborgs – GE’s Nordic business, but he is now in charge of the Northern Lennart Sten was lined up for the post of Managing Director of Europe Region, which is practice means the Nordic area, Britain Niam at the end of 2004. and Central Europe.

DRIVES A CORVETTE Name: Lennart Sten. Age: 49. Family: Wife Viveca, daughter Camilla, 16, sons Alexander, 13, and Leo, 10. Homes: Villa in Danderyd (Stockholm), summer house in Sandhamn. Describe yourself in three words: “Analytical, impatient and result-driven”. Favourite food and drink: Sautéed lamb or pig kidneys and red wine. “But I don’t get to cook it when the others are home because it smells so awful.” Drives: A Corvette (2003 jubilee model) and a Ford Mave- rick, which is a company car. Favourite books: ‘Confessions of a Philosopher’ by Bryan Magee and ‘Gryning över Kalahari’ (‘Dawn over the Kala- hari’ ) by Lasse Berg. Lennart Sten the hunter enjoys the natural Favourite fi lms: “It used to be ‘Star Wars’, now it’s the ‘Lord world. “To sit in the forest at half past fi ve of the Rings’ saga.” on a Saturday morning in September 52 when the dawn is breaking, the mist is FASTIGHETSSVERIGE #6/2008 rising and the birds are singing ... that’s my high,” he says. [ Xxxxxx av Eddie Ekberg ] for the Nordic area and Britain

– GE has reorganised and divided the world into fi ve regions Sten, who has written several legal textbooks and recently made outside the USA, so I am the Regional Director for Northern her detective-story debut with ‘I de lugnaste vatten’ (‘In the Stil- Europe. It’s enjoyable – an exciting challenge. In Britain we are lest Water’) nearly four times as big as here. Our stock there is worth 55 billion – It’s been wonderful for her. Th e book has sold 30,000 copies kronor, compared with 14 billion kronor here. and she’s now working on the next one. – So I spend at least half my time in Britain now. But I am not moving there permanently. I’ll continue to live in Sweden. What do you read yourself? – I read almost anything, but a lot of history. At the moment I How much do you work? am reading ‘Revealing the Hidden Bloodline of Jesus’. Th ere is a – 60 hours a week, sometimes more, seldom less. But it depends huge amount you can read about the origins of the Christian faith on how you look at it, of course. If I’m sitting in an aircraft, am and I would recommend everyone to read Lena Einhorn’s ‘What I working? I’m working if I sit and read a report, but if I’m wat- Happened on the Road to Damascus?’. In parallel I am reading ching a fi lm ...? Ian Rankin’s ‘Tooth & Nail’. Lennart Sten’s main leisure interests are hunting, tennis and literature. How do you see the future? What will you be doing in ten – I enjoy typical Swedish hunting – duck, pheasant, wild boar, years’ time? elk, deer ... – I’ll be on the point of leaving my last executive job and going in more for directorships and consultancy. But it won’t be long then What’s the fascination in hunting? before I take my pension completely. – For me the tranquillity, I suppose. One thing people don’t rea- lise about hunting is how rarely you actually shoot. Much more When you fi nally do that, how will you occupy yourself? of it is waiting. You see an enormous number of animals but for – I don’t know – grow roses perhaps. I have eight diff erent va- most of them the encounter ends undramatically. Th ey are facing rieties at our summer house and around 40 in the city. Roses are the wrong way or they move a long way off , but you get to see fascinating, because you are not automatically successful with all them in their natural habitat and that is marvellous. of them, but they are not extremely diffi cult like orchids. And Lennart shares his interest in literature with his wife Viveca they are fantastically beautiful, of course.

Lennart Sten has recently moved up the GE ladder. He now has the main responsibility for GE in Literature enthusiast Lennart Sten is not as deeply into fi lms as he is into both the Nordic area and Britain books. ‘Star Wars’ is one of his absolute favourites – although he is not sure in his role as Regional Director whether he should see the forthcoming animated ‘Star Wars’ fi lm. for Northern Europe. #6/2008 FASTIGHETSSVERIGE 53 Did you see anything you liked?

MIPIMSee you next time at MIPIM

Number 2 2009 is distributed the end of February. The magazine will also be available at the MIPIM fair.