Sweden’s AMF is selling its 33.3 per cent stake in Finnish real estate company Mercada to the retail group Kesko.

AMF has co-owned Mercada with Kesko and the insurance company Ilmarinen since 2015. The sale is part of AMF's ongoing further development of the existing property portfolio, which includes both divestments and new investments.

AMF portfolio manager real estate, Pernilla Arnrud Melin, said: "Mercada has been a good investment for AMF and contributed to a high and stable return for our pension savers. The sale is part of AMF's ongoing further development of the existing property portfolio, in the form of both divestments and new investments. We see this as active portfolio management, and as a way to generate a stable and competitive return for our savers going forward.”

Mercada owns 35 properties with approximately 290,000 sqm of leasable area, which mainly consists of groceries with Kesko as tenant, as well as two major shopping centres.

“AMF was an early investor in unlisted properties and is one of Sweden's largest owners of properties, with a good mix of commercial, residential and community service properties. The property portfolio contributes nicely to the return and diversification of our overall portfolio, which in turn is important for managing different market conditions and economic fluctuations. This is something that will lead to our savers getting the best pensions possible," AMF head of alternative investments and real estate, Henrik Lundh, said.

After the sale, AMF's unlisted property portfolio consists of the wholly-owned subsidiary AMF Fastigheter, the partly owned Swedish real estate companies Rikshem, Urban Escape and Delcore Fastigheter, and the Finnish real estate company Antilooppi.

The transaction was completed on 31 January 2025. Advium Corporate Finance and Hannes Snellman Attorneys advised AMF in the transaction.

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