Swedish real estate exit for AP 6, 3i

Scandinavian banking group Nordea has paid E118m to acquire the 60 per cent stake that it didn’t already own in Nordisk Renting.

UK-listed private equity firm 3i and AP Fond 6, the Sixth Swedish National Pension Fund, have completed an exit from Nordisk Renting, a Scandinavian real estate company which acquires, owns and develops properties for long-term leasing.

 

The two groups have sold their interest in the business to fellow shareholder, Nordea which already held a 40 per cent stake in the business. Swedish-based Nordea, acting through its Finnish subsidiary Nordea Bank Finland, has agreed to pay a total of SKr1.075bn (E118m) for the remaining 60 per cent stake, of which 3i held 35 per cent and AP Fond 6 25 per cent.

 

Nordea exercised an option to acquire the remaining shares from 3i and AP 6 which came into effect on January 1 2003. Nordea said the acquisition would give it greater flexibility over its future involvement in Nordisk Renting and that it was currently re-evaluating the business.

 

The Nordisk Renting group owns properties to the value of approximately SKr14bn (E1.53bn) in Sweden, Finland, Norway, Germany, Holland, Switzerland and England. Its portfolio comprises almost 200 properties with a floor area of approximately 1.8m square metres.

 

The investment was 3i’s largest involvement in Scandinavia and nets the UK firm SKr627m, an average return on equity for 3i of 27 per cent since it acquired the business alongside Nordea and AP Fond 6 in 1998. It is the second exit to be announced by the firm in 2003, following the E100m sale of French-based logistics group Transalliance to management.