Barings divests Stockholm office building for €133m

Global real estate investment manager Barings has divested the Härolden 44 (Fleming 7) office property in central Stockholm to KLP Eiendom for SEK 1.48 bn (€133 mln).

Fleming 7

The property, which boasts roughly 10,000 m2 of flexible lettable office space, includes features like a restaurant, fitness centre, and conference facilities.
The building dates originally from 1964, with extensions carried out in 1989 and 2017.
During Barings' ownership, the property achieved BREEAM Excellent In-Use certification and secured new leases or renewals from all tenants. 
The sale is expected to be completed in early September 2025.
The property is located on the east side of Kungsholmen, central Stockholm, and is close to public transport links. 
Andreas Norberg, managing director and country head Nordics at Barings Real Estate, said: “The Stockholm office market has seen a lack of supply of high-quality assets with excellent facilities in desirable central locations, making Fleming 7 a highly attractive proposition to investors. Our tenure saw the previously under-rented property surpass our expectations in terms of rental uplift, and we are now looking to redeploy the proceeds to assets in the future.” 
Gunther Deutsch, managing director, head of European transaction, and country head Germany at Barings Real Estate, said: “We believe that prime offices in excellent locations in Europe’s strongest cities continue to provide excellent investment opportunities, whether for core capital, value-add investments or, indeed, in joint venture development projects with a local and experienced partner. As well as offices, our preferred sectors across our European markets are in the logistics and living sector and, at this point in the cycle, we remain actively eager to explore opportunities on behalf of a range of core, core-plus and value-add strategies in our target countries of the Nordics, Benelux, Germany, UK, Italy, France and Spain.”
Barings was advised by Cushman & Wakefield.