Swedish property company AMF Real Estate said on Monday that it has sold the Stettin 6 asset in Stockholm's Tegeluddsvägen area to an affiliate of Estancia Fastigheter for some SEK 420 mln (EUR 46 mln). Ownership will be transferred in the fall of 2011.

The scheme was originally developed in 1981 to house the headquarters of construction company JM and currently offers around 22,000 m2 of lettable office space. The largest tenant is the customs authority, Tullverket.

'We decided to sell the property because it is not one of AMF Real Estate's strategic office locations,' said Mats Hederos, chief executive of AMF Real Estate, noting that 'the area is currently undergoing a renovation process and is part of a larger development area where the City is planning new housing and business activities'.

'Estancia is already established in the area and is strengthening its position,' added Åke Glommen of Estancia. 'In the future we may contribute to the area's positive development.'

Newsec advised AMF Real Estate.

AMF Real Estate is a subsidiary of the AMF pension fund. The company develops and manages a property portfolio with a market value of SEK 25 bn and focuses on office and commercial assets in the cities of Stockholm and Gothenburg.