Bank of Ireland Private Banking has invested €125 million in an office and retail development in Stockholm, its first property deal in Sweden.
The development called Stuten 12 is in the heart of Stockholm's business district and comprises 15,000 square metres of office and retail space across three interconnected blocks.
Bank of Ireland has earmarked Scandinavia as an investment opportunity in the rapidly inflating global property market. The property was purchased at an estimated initial yield of 4.8 per cent from Swedish Fabege plc.
"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 of Bank of Ireland Private Banking.
The bank said 81 per cent of the rent comes from 12 office tenants, with the international law firm Linklaters as the anchor tenant. The retail space is let to seven tenants, with lease lengths varying from five to nine years.