Swedish real estate company Wallenstam has announced the acquisition of a portfolio of seven properties in central Göteborg, Sweden's second-largest city, for SEK 1.2 bn (EUR 135 mln). The seller is northern European private equity firm Niam.

The properties, valued at SEK 1.18 bn, offer 55,000 m2 of commercial space in the Kaserntorget, Ekelundsgatan, Första Långgatan, Kungsgatan and Rosenlundsgatan districts of the city. Major tenants include public organizations and authorities such as the city's Provincial Office and the Enforcement Services association.

Ownership of the assets will be transferred on 1 July 2011.

'We have seen increasing demand for large, contiguous properties which we will be now be able to offer our tenants,' said Hans Wallenstam, president of Wallenstam. 'The properties are about 10%-vacant and we see great potential in reducing the vacancy rate.'

Last week Niam had announced the acquisition of the Linderud Senter mall in Norway through its subsidiary Sektor Eiendomsutvikling from Braathen Eiendom Holding. The centre has a lettable area comprising 28,000 m2 with approximately 80 tenants and generated just under NOK 600 mln (EUR 76 mln) in turnover in 2010.

'Linderud Senter is a modern and well maintained shopping centre that fits perfectly with our current portfolio of 27 shopping malls and we are excited about the opportunity to develop the center further,' said Eirik Thrygg, CEO of Sektor Eiendomsutvikling. The acquisition of Linderud Senter is the first made by Sektor Eiendomsutvikling since it was acquired by Niam Nordic Fund IV in April last year.