Pramerica Real Estate Investors has announced the formation of a follow-on second joint venture with local partners Aros Management, for residential conversion and development in Sweden. In total the partnership intends to invest SEK 220 mln (EUR 25 mln), which with leverage has the potential to provide a total investment capability of up to SEK 725 mln.

Pramerica's London-based Merchant Banking Group structured the investment on behalf of institutional investors, providing further exposure to Sweden, a country that is enjoying strong economic growth and has an undersupplied residential real estate market.

Pramerica is the European real estate arm of Pramerica Financial's real estate investment and advisory business, which is headquartered in the US.

This JV follows on from the earlier commitment to Aros made in 2006 that has been fully invested in five buildings of more than 31,000 m2 with a total investment of SEK 1 bn. Aros was formed in 2006 to act as manager on behalf of the first venture with institutional funds managed by Pramerica and is headed by Samir Taha, CEO and Per Rutegård, CFO.

The partnership has launched the commitment to acquire a 9,400-m2 office building in central Stockholm with the intent to convert this into 110 residential units. Further transactions are under review.