DTZ Sweden investment team works with KPL Eiendom on 120 million Euro hotel acquisition

Diligentia AB one of Sweden’s largest property owners, was in the planning phase for converting an office building into a flagship hotel with 400 rooms. Scandic, the leading hotel chain in the Nordic region, signed a 20-year lease for 15,000 sq m of the 18,000 sq m property. The DTZ Investment team quickly recognised that the property was an odd asset in Diligentia’s portfolio. It did not fit the company’s strategy of focusing on office, residential and retail property.

Based on this insight, the DTZ investment team took action to identify a potential investor for the property. They put together a persuasive proposal and presentation. Diligentia was impressed by DTZ’s understanding of their business strategy, the creative approach and the fact that they acted on their idea.

The result was a successful acquisition of the property for 1.1 billion SEK (120 million Euros) to KLP Eiendom AS, which DTZ acted as advisors for. In addition to the 120 million Euro purchase price there is an additional purchase price linked to the future performance of the hotel.
For further information, contact Fredrik Lidjan on +46 (0)8 671 34 76