Stockholm. The State paid major Krona for 72 retail assets.

LONDON-AXA Real Estate has been busy of late and the latest transaction is a bell-ringer. The investment manager has just sold a little under (US) $156 million in retail assets to Tredje AP-fonden, a Swedish state-owned pension fund.

The sale amounts to nearly 1.4 million square feet of retail, leased in large part to two undisclosed Swedish food retailers. In gfact those two mystery retailers account for 80% of the assets’ income.

According to Henrik Bastman, who heads the Nordic region asset management for AXA, The assets “are located across Sweden, providing the acquirer with geographic diversification benefits as well as direct exposure to the well-performing food retail sector in one of Europe’s strongest economies.

“The sale of this portfolio to AP3 demonstrates the clear demand from investors for well-located food retail assets, backed by strong tenant covenants, in one of Europe’s strongest economies,” says Bastman.

“This comes at a time where state and private pension funds in Sweden, and across Europe as a whole, are looking toward the secure and stable cash flows provided by defensive real estate assets in order to meet their liability-matching needs.”