Focus on prime suburban office assets
Silverdal I had a strategic location alongside the E4 motorway in Silverdal, in the municipality of Sollentuna, which is strategically located between central Stockholm and Arlanda Airport. CapMan Real Estate had an opportunity to acquire the building in 2012 in a sale/lease back transaction with a new 10 year lease to Pfizer and a seven year lease to BMW on 76% of the leasable area. Silverdal I was a highly institutional asset, except for 24% vacancy and non-core location.
The value-add strategy was successfully implemented ahead of original schedule
The case team negotiated new leases for the vacant 24 % area making the property fully let. Expenses were reduced and rentable areas – restaurant, conference area and auditorium – were created out of previously non-income generating space. In addition, property tax ratings were reduced and energy savings made, generating significant operating cost savings.
The property is now fully let to nine tenants and numerous operational improvements have been made
In July 2015, Silverdal I office building was sold to the Swedish real estate company Klövern AB (publ) for SEK 300 million less than three years after their joint venture acquired it.
“We are very satisfied with this investment, where our value-add strategy was successfully implemented ahead of our original schedule. The property is now fully let to nine tenants and numerous operational improvements have been made,“ commented Ed Williams, Managing Partner at CapMan Real Estate Sweden at exit in 2015.
Location: Stockholm, Sweden
Investment period: 2012-2015
Leasable area: 16,282m2