Real estate investment manager Barings’ €72 million off-market purchase of an office block in the Stockholm CBD demonstrates the firm’s conviction in the continued importance of “the office”, the firm said.
Barings Real Estate acquired the 6,185 sq m Skvalberget 33 from BLDG Holding AB on behalf of institutional investors.
“While a large proportion of the world’s office staff have been working from home successfully over the last few months as a result of government enforced lockdowns, we firmly believe that, for many reasons, offices will continue to play a vital role for all businesses, particularly in relation to fostering culture, improving collaboration and creativity, as well as nurturing and attracting talent,” said Barings’ managing director, head of real estate transactions Europe, Gunther Deutsch.
“We believe that in a post Covid-19 world demand will more than ever be focused on brand new or newly refurbished offices in CBD locations that offer flexibility of workspace, as well as strong technological and sustainability credentials,” Deutsch added.
The eight-storey Skvalberget 33 is fully let to four tenants: Academic Work, Meltwater, Stratsys and Beckmans Design School. There is scope to add a further 3,900 sq m of space and the building is under rented Barings said in a statement.
Strong location essential to retain talent
Skvalberget 33 is situated in the Eastern part of Stockholm’s CBD. The acquisition increases Barings’ Scandinavian portfolio to approximately 170,000 sq m including offices, logistics, retail and residential assets.
Thorsten Slytå, managing director and Barings head of Scandinavia, said that the firm sees, “a clear sign that modern companies today need to have an excellent location for their offices with great commuter possibilities to be able to attract and keep the most talented employees. This ongoing trend has shown to be even more important during the Covid-19 pandemic.”