Innovative properties in Paris and London
Real estate company CityHold is owned by AP1 along with AP2 and American pension fund TIAA.
The focus is on commercial properties in the most central hubs of Europe.
“It’s a stable strategy that lays the foundation for a constant influx of tenants and low risk, which suits long-term owners,” says Oskar Backman. He works with alternative investments at AP1, which include investments in real estate and infrastructure. The strategy for CityHold has now been expanded to create opportunities for higher returns by taking a limited development risk in some cases.
“We have ourselves invested in the development of a property in central London, founded on a strong faith in offices with a sustainability focus. And our expectations have come to fruition; more than half the building has now been rented, long before the moving-in date.”
Another innovative project can be found in Paris.
“It’s an exciting one from both a commercial and an urban planning perspective. When the city put out attractive land on the banks of the Seine to tender, bidders were asked to suggest how the site could be developed with regard to social and cultural aspects, for example.”
Emerige was the winning bidder, a development company that will work with David Chipperfield Architects to create offices, homes, a youth hostel, gardens, art studios and more, all based on the original building from the 1960s.
“CityHold was chosen in stiff competition with other investors for a proven track record of expertise and a fast investment process. This project will bring us a high rate of return,” Oskar Backman explains.