Real estate

A substantial part of the AP3 portfolio

Investing in real estate offers potential for relatively stable returns and a degree of protection towards inflation. As an illiquid asset tailored to specific operating activities, property offers a risk premium to investors a higher potential return. AP3´s strategy is to focus on Sweden through majority-owned real estate companies that enable the Fund to capitalise on its status as a long-term, responsible owner.

The real estate portfolio

The real estate portfolio includes the companies Vasakronan, Hemsö, Trophi, Regio and Trenum that contribute to building Sweden. Of the companies in the portfolio AP3 has been a part of the foundation of Hemsö, Trophi, Regio and Trenum. A sizeable equity interest gives AP3 the ability to exert active stewardship and take a proactive part in developing the company’s strategy. Board membership is an effective way to exercise influence and drive sustainability efforts forward.

16.3%

Real estate, exposure, %. Return -7.1%. Contribution -1.3%. As of December 31, 2023.

Sergels Torg med vasakronans byggnad i bakgrunden

Major real estate holdings

Vasakronan – Sweden’s largest real estate company

Vasakronan is Sweden’s largest real estate company. The company owns, manages and develops commercial real estate in Stockholm, Uppsala, Gothenburg and Malmö and is owned in equal shares by AP1, AP2, AP3 and AP4. Vasakronan is a climate-neutral property manager that has more than halved energy consumption across its portfolio since 2008. Green finance accounts for 47% of the company’s borrowings and all new leases are green. Find out more at vasakronan.se.

Sandbyhov i Norrköping, skola och äldreboende
Sandbyhov, school and retirement home in Norrköping Sweden.

Hemsö – Social infrastructure

Hemsö is the leading owner of properties for public use in Sweden and Sweden’s largest private owner of residential care homes, schools and penal institutions. Their vision is to strengthen the backbone of our society. It owns properties in Sweden, Finland and Germany. The company actively seeks to integrate social, environmental and financial sustainability in its operations. Find out more at hemso.se.

Fastighet för dagligvaruhandel/ Food retail property

Trophi – Retail properties

Trophi is th eleading Nordic real estate company for grocery and retail properties, located in Sweden and Finland. The largest tenants are ICA, Coop, S-gruppen and Kesko. Trophi is wholly owned by AP3. The company works with tenants to promote sustainability through green lease contract clauses, sustainable materials and greater use of renewable energy through the installation of solar panels and geothermal energy in locations such as Uppsala. Find out more at trophi.se.

Regio – Regional properties

Regio is a long-term owner of commercial property focused on expansive regional cities. AP3 owns 96% of the company, which is operated by co-owner Brunswick Real Estate. Property management and development is in collaboration with local partners. All Regio properties are sustainability classified and have a clear focus on energy, resource and materials use. The company also engages in property development projects to increase social utility. Find out more at regiofastigheter.se

{:sv}Trenums lägenhetshus av trä i Västerås{:}{:en}Wooden apartment building by Trenum in Västerås {:} — Trenums lägenhetshus av trä i Västerås

Trenum – Building residential rental properties

Trenum focuses on new leasehold residential properties in Sweden’s three largest cities and other growth centres. The company is equally owned by AP3 and Fastighets AB Balder. All Regio-built properties are environmentally certified. Find out more at trenum.se.