STOCKHOLM, MAY 2, 2006: GE Real Estate Nordic has acquired a portfolio of 48 properties from Fastighets AB Tornet for SEK 3.8 billion (approx. EUR 400 million). The portfolio comprises mainly office and business assets in attractive locations in Stockholm and Gothenburg. The rentable space, 350,000 square meters, is evenly distributed between the two cities.
Fourteen of the properties are located in the Greater Stockholm area, with 80 percent of the underlying property value concentrated in Danderyd and Södermalm. The largest single property, called Svärdet 7, which accounts for 17 percent of the portfolio’s total rentable space, is located in Danderyd. The remaining Stockholm portfolio comprises mainly business premises in Västberga.
The 34 properties in Gothenburg are primarily office premises in prime locations. Approximately 40 percent of the underlying property value is within Vallgraven.
In conjunction with the acquisition approx. 20 employees, mostly asset managers and operating technicians, who currently work on the portfolio, will be offered employment with GE Real Estate Nordic.
“We are extremely pleased to have acquired these properties, which are located in two of our key target regions, namely Stockholm and Gothenburg,” commented Lennart Sten, Managing Director of GE Real Estate Nordic. “As a result of the acquisition, we have re-established a strong market position in Gothenburg whilst gaining a local asset management operation.”
“GE Real Estate is strongly committed to grow its presence in the Nordic region and today's transaction, which is the second largest ever in this market, represents a significant step in achieving our expansion goals. This transaction is the 3rd for GE Real Estate in the Stockholm region over the last six months, reinforcing our desire to take a much more active role in this market. The expansion will probably mean that we will be seeking to employ resources in addition to those we hope will be joining us from the acquisition,” added Lennart Sten.
The property portfolio currently has a well-diversified tenant structure and an occupancy rate of about 85 percent.
Contact: Stephanie Highett/Dido Laurimore, +44 20 7831 31 13,
Stephanie.highett@fd.com,
dido.laurimore@fd.com
Notes to editors:
GE Real Estate(
www.gerealestate.com) is a world leader in real estate capital. Formed in 1972, the business has more than $35 billion in assets with 34 offices located throughout North America, Europe, Asia, and Australia/New Zealand. GE Real Estate, backed by its parent company’s AAA rating, offers a broad range of debt, equity and servicing solutions including: intermediate and long-term mortgages, restructuring and acquisition capital, niche equity investment/joint ventures, capital markets securitization and placements, and asset management. As one of the fastest growing units within GE Commercial Finance, Real Estate has experienced annual growth of more than 10% for the last ten consecutive years.
GE Real Estate has 20 years’ experience in the European property market and has established a solid foundation through long-term dedication to local partnerships and meeting customers' needs. Today, 466 real estate professionals and 35 joint venture partnerships operate from seven regional offices across Europe. The business in Europe has current direct investments of US$9 billion (Euro 7.6 billion), representing a US$11.5 billion (Euro 9.7 billion) portfolio of underlying assets in European real estate.
GE Commercial Finance is the business-to-business finance unit of General Electric. With deep industry expertise and lending, leasing and financing services of every kind, GE Commercial Finance plays a key role in helping its customers grow. Conducting business in 35 countries, GE Commercial Finance has assets of over US$230 billion and is headquartered in Stamford, Connecticut, USA.
General Electric (NYSE: GE) is Imagination at Work - a diversified technology, media and financial services company focused on solving some of the world's toughest problems.
