Europa completes sales of Stockholm office building

Europa, on behalf of Mitsubishi Estate London, has finalised the sale of 32-36 Sveavägen, a 7,000 m2 prime office building located in the centre of Stockholm.

32-36 Sveavägen, Stockholm

This 10-story property, originally designed by Victor Fagerström and built in 1926, has been modernised by Europa and local partner NCAP. The renovation focused on preserving its historical character while creating contemporary, flexible office spaces equipped with high-quality amenities such as a gym, café, and restaurant. The building also boasts strong sustainability and digital infrastructure credentials, evidenced by its BREEAM 'Excellent' and WiredScore 'Platinum' certifications.

Sweden's leading co-working operator, IOffice, occupies 88% of the building, having pre-leased the office and ancillary areas for its flagship Stockholm location on a 10-year lease in 2023, during the renovation period.

Strategically positioned in Stockholm's central business district, the building offers excellent transportation links, including the nearby Hötorget Metro Station, and easy access to major commercial and cultural attractions.

Sabine Jones, director at Europa, commented: “The sale marks the successful conclusion of our business plan for 32–36 Sveavägen, breathing new life into this historic building which is now firmly established as a bellwether for Stockholm’s office market. Through our active asset management expertise, we have refurbished this property to create a high-quality workspace, which meets the increasing demands of modern occupiers, secured a long-term lease with IOffice and crystallised value for our client. Well-located, prime offices continue to perform well in major European cities and remain significantly attractive to both investors and occupiers.”

Shinichi Kagitomi, chief executive of Mitsubishi Estate London, added: “We are pleased to have delivered yet another flagship office building in a major European capital. The transformation of 32-36 Sveavägen into a high-quality asset reflects our strategy across our European platform, and we remain confident in the long-term fundamentals of the prime office markets in Europe’s key cities, which are characterised by strong occupier demand and limited new supply.”

John Routledge, partner at NCAP, said: “This is a sensitive CBD site and building, which meant that from day one, we had to be mindful of planning sensibilities. This marks our second successful Stockholm office redevelopment, working together with Europa and Mitsubishi Estate London, who have proved to be highly engaged and motivated capital partners.”