Swedish real estate investment company Diös Fastigether is doubling the size of its portfolio with the acquisition of peer Norrvidden for SEK 5.6 bn (EUR 600 mln).

Diös is financing the transaction with a SEK 1.1 bn rights issue andSEK 4.5 bn of debt. Closing is expected by year-end 2011.

The deal will increase the size of Diös' portfolio to SEK 11 bn. 'The two companies complement each other,' Diös CEO, Christer Sundin. On completion of the deal, Dios' portfolio will generate SEK 1.3 bn of rental income, from SEK 580 mln at present.

Norrvidden, founded in 2002 and headquartered in Sundsvall, has offices in Sundsvall, Östersund, Gävle, Umeå and Luleå. It owns 222 properties totalling 840,000 m2 in Sweden.

The company has been owned by Swedish private equity firms Altor Equity Partners and Bure Equity since 2009. In March this year the private equity duo announced plams to sell the business.

Leimdörfer acted as financial advisor in the sale. Diös' financial advisor in the acquisition process was Catella Corporate Finance and Handelsbanken Capital Markets.