Swedish listed property company Hufvudstaden has acquired an office property in Stockholm for SEK 477 mln (EUR 51.5 mln) from listed Swedish peer Fabege. The transaction is expected to complete in mid-December.

Located at Kåkenhusen 38 at Norrlandsgatan 31, the asset offers 6,700 m2 of space including 5,600 m2 of offices and 1,100 m2 of restaurant space. It is fully let to the Swedish Financial Supervisory Authority (Finansinspektionen) and a restaurant operator, generating an annual net operating income of SEK 23.5 mln.

The acquisition of Kåkenhusen 38 is in line with Hufvudstaden's strategy of concentrating its holdings in central Stockholm and central Gothenburg, the company said. 'Kåkenhusen 38 fits very well into Hufvudstaden's property holdings, particularly in light of the fact that we already own the surrounding properties on the block,' added Ivo Stopner, Hufvudstaden president. 'The acquisition will result in positive synergies in terms of both revenue and costs and we have identified the potential the block presents for future development.'