The joint property company acquires the city block Urban Escape which includes the Gallerian shopping centre in central Stockholm. The transaction is made at book value. AP7 acquires about 33 percent of the company, which corresponds to approximately SEK 7,4 billion in property value. AMF remains as majority owner and AMF Fastigheter will continue to be responsible for the development and management of the city block.
”We are very pleased to be able to make our first investment in one of Stockholm’s most interesting properties. With this as a starting point, we will gradually expand our investments for many years to come, both in terms of value and number of countries. AMF will be an ideal partner on this journey”, says Richard Gröttheim, CEO of AP7.
"Urban Escape is in many ways the crown jewel in AMF Fastigheter's property portfolio. The block has been a forerunner in the work of developing attractive, living urban spaces and Brunkebergstorg has gone from being an unsafe, forgotten place to today being a place where people want to be. The deal gives us good conditions to develop AMF Fastigheter in the long term and continue to create value in the city. With this unique deal, we can also look forward to a fruitful collaboration with AP7," says Thomas Erséus, CEO of AMF Fastigheter.
"At AMF, we are very proud of Urban Escape, which is one of our largest and most successful property investments ever. The investments we have made in the area have meant a good value development for our pension savers, and at the same time have contributed in a tangible way to an important part of The heart of Stockholm has become a more attractive, appealing and vibrant place. I am very happy that we can continue to work with the area together with a like-minded constructive and long-term oriented Swedish investor, AP7. It gives us good opportunities to continue managing and developing Urban Escape in the best possible way," says Katarina Romberg, Chair of AMF Fastigheter's board and Head of Alternative Investments at AMF.
At the turn of the year, AP7 received increased investment opportunities for its managed capital of over SEK 900 billion. The mandate for investments in illiquid assets, such as real estate, private equity and infrastructure, was increased to 20 percent.
”With our long-term perspective as a pension fund, illiquid investments suit us well and enable better risk spreading. This requires collaborative partners with the same values and long-term approach as AP7’s, which we have found in AMF”, says Per Olofsson, acting Head of Asset Management.
Access will take place on 2 October 2023. The deal is subject to approval from the Swedish Competition Authority. The final purchase price is based on the average between the property valuations at the turn of the year 2022 and 2023.