Lehman Brothers Markets $2.74B Swedish Property Portfolio

Lehman Brothers Real Estate Partners has placed a $2.74 billion portfolio of Swedish real estate on the market. The massive portfolio is owned by Lehman Brothers on behalf of its Swedish-listed real estate company, Fastighets AB Tornet (known as "Tornet"). The portfolio consists of a combined 142 retail, office, industrial and residential properties concentrated in Sweden’s six largest cities.

"I believe that Swedish funds will probably be most interested in the portfolio," says Magnus Lange, partner at Cushman & Wakefield Healey & Baker’s Stockholm office. Some international investors may be interested in Tornet’s retail properties, however, he adds. Lehman Brothers bought its 82% stake last year, according to Lange, who doubts that the portfolio will be sold as one unit.

In 2003, Swedish commercial real estate attracted the third-highest capital flows in Europe, according to Lange. England and France hold the first and second positions, respectively.

Earlier this month, Tornet placed a 90,000 sq. ft. shopping center outside Malmo on the market. A Tornet source reports that bidding is under way on the property, which is expected to sell for approximately $72 million.

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