Sweden’s AP7 and AMF have strengthened the joint ownership they have in the property company, Urban Escape, with AP7 exercising its option to acquire a further SEK 3.57bn in shares.

In May 2023, AMF and AP7 agreed on a joint ownership of the Urban Escape city neighbourhood in central Stockholm. The deal, which at the time was classed as the largest property deal of the year, was the start of a strategic partnership aimed at creating even more value for Sweden's pension savers.

Now the collaboration is further strengthened as AP7’s ownership has increased to 49.9 per cent, up from 33.3 per cent. AMF remains the majority owner and AMF Fastigheter will continue to develop and manage the neighbourhood.

The Urban Escape neighbourhood in central Stockholm contains offices, hotels and retail including Gallerian. The neighbourhood has been developed by AMF Fastigheter and comprises a total area of 135,000 sqm.

AP7 entered into the strategic partnership with AMF based on the pension companies' shared values, savings focus and long-term approach.

"Increasing our ownership in Urban Escape is in line with our original intentions and part of our strategic partnership with AMF. We look forward to further strengthening our partnership in the coming years based on our shared values and focus on our savers. We see that real estate is a natural asset class in our long-term management of the pre-selected premium pension," AP7 head of asset management, Lena Fahlén, said.

In addition, AMF Fastigheter CEO, Thomas Erséus, said: “After almost two years of fruitful partnership, it feels right to take the next step and further strengthen AMF's and AP7's collaboration and co-ownership. Together we want to meet the Stockholm of the future and continue to create an attractive, safe urban environment where people's well-being and innovative capacity are in focus.”

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