AP7 and the occupational pensions company AMF form a joint venture company that will become owner of the Urban Escape city block in central Stockholm. AP7 will own one third of the new joint company.
The joint property company acquires the city block Urban Escape which includes the Gallerian shopping centre in central Stockholm. The transaction is made at book value. AP7 acquires about 33 percent of the company, which corresponds to approximately SEK 7,4 billion in property value. AMF remains as majority owner and AMF Fastigheter will continue to be responsible for the development and management of the city block.
”We are very pleased to be able to make our first investment in one of Stockholm’s most interesting blocks. With this as a starting point, we will gradually expand our investments for many years to come, both in terms of value and number of countries. AMF will be an ideal partner on this journey”, says Richard Gröttheim, CEO of AP7.
At the turn of the year, AP7 received increased investment opportunities for its managed capital of over SEK 900 billion. The mandate for investments in illiquid assets, such as real estate, private equity and infrastructure, was increased to 20 percent.
”With our long-term perspective as a pension fund, illiquid investments suit us well and enable better risk spreading. This requires collaborative partners with the same values and long-term approach as AP7’s, which we have found in AMF”, says Per Olofsson, acting head of asset management.
Read more in the press release from AMF Fastigheter