CBRE Global Investors and Estea acquire 189 residential units in Stockholm

CBRE Global Investors, on behalf of European Value Partners 2 (EVP2) with its joint venture partner Estea, has agreed the forward funding and acquisition of a residential apartment building in Stockholm, Sweden from Magnolia Bostad.

The 8,900 sq m residential block will comprise 189 units and the build-to-rent project is expected to be completed in 2023. The building will be certified Miljöbyggnad Silver which is the Swedish system for environmental certification. It has been developed by the Sweden Green Building Council, the largest organisation in Sweden for sustainable community buildings.

The asset is located in the Enköping municipality and is located 40 minutes away from Stockholm Central Station by train. It is part of a new development area which is located a short walk away from central Enköping. The new area will feature 900 residential units, retail shops, a preschool and a retirement home. Since 2010, Enköping has had the highest population growth in Uppsala County, at 16.5 per cent which is also above the national population growth rate.

Christina Forrest, Fund Manager, EVP2, CBRE Global Investors, says: “With the continued housing supply shortage in Sweden and working with our trusted partner, Estea and a highly regarded developer, Magnolia Bostad, we believe this asset has solid investment and sustainable fundamentals. It is a welcome addition to EVP2’s growing residential portfolio and one that we believe will perform well for our investors.”

“It is very rewarding to be able to continue building on the collaboration with CBRE Global Investors. We have been able to show that Estea is a strong partner to global players who want to gain exposure to the Swedish real estate market. We are actively looking for new sustainable housing projects and continue to believe in entering the development phase early. This is a concept we will continue to develop,” says Johan Eriksson Rydermark, CEO of Estea AB.

The transaction is on behalf of Mästerbo which was founded in 2020 between CBRE Global Investors and Estea AB as joint venture partners with a focus on sustainable residential properties in growth regions and university cities. Two housing projects have already been acquired, in Sigtuna and Lund and this is the company's third project.

Linklaters acted as legal advisor to Mästerbo.

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