Bank of Ireland Private Banking is investing €125 million to acquire a multi-let office and retail complex in Stockholm's central business district in one of the biggest forays by Irish investors into the Scandinavian property market.

The property, Stuten 12, comprises 15,000sq m of office and retail space in three connected buildings. As much as 81 per cent of the rent comes from 12 office tenants, with the international law firm Linklaters accounting for more than half of the office income. The current leases vary in length from three to seven years.

The retail space, which accounts for the remaining 19 per cent of the income, is let to seven tenants with lease lengths varying from five to nine years.

"This property gives investors an opportunity to access an investment in one of the better global economies, in a city where the balance of supply and demand for Grade A buildings indicates potential for strong rental growth over the next few years," said Peter Collins, director of Bank of Ireland Private Banking.

"With a number of tenants on a variety of lease lengths, it offers not only a good level of security of income, but also the opportunity to manage up the rent level in the building as tenants look to renew leases in the expected upward cycle."

The acquisition, which comes less than two months after the company agreed to pay about €285 million for a 21,000sq m office complex in Paris, shows Mr Collins is taking his own advice. Earlier this year he told investors they would have to look beyond the shores of Ireland and the UK if they wanted better yields and borrowing rates.

The transaction is expected to be complete by March.