STOCKHOLM-In Sweden’s largest single transaction for more thanthree years, Frankfurt-based Deka Immobilien has sold the CityCronan office building in Stockholm’s central business district.The property has been acquired by Swedish pension fund AMF.

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Both parties have agreed not to disclose the price of the sale.Deka Immobilien said it made a profit, which means it should exceed$357 million for which it bought the complex in 2003 for itsopen-ended mutual property fund Deka-ImmobilienEuropa.

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Thomas Schmengler, Deka Immobilien managing director, says thefirm received a good offer and seized this opportunity. “Despitethe sale, Sweden remains an attractive investment market for us. Inthe past 14 months, we have acquired properties in Gothenburg andStockholm. We will continue to actively seek investmentopportunities,” he says. Across all recent transactions, DekaImmobilien achieved a profit of approximately 13% on the lastmarket value of the properties, says the firm.

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The City Cronan property is mainly used as an office buildingand has total leasable floor space of more than 450,000 squarefeet. The transaction is scheduled for the start of 2011.

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AllanSaunderson is a managing editorof PropertyInvestor Europe and a contributor toGlobeSt.com.

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