BauMont Real Estate Capital and SBF Fonder Complete First Three Stockholm Acquisitions Under €500 Million Partnership

LONDON/STOCKHOLM, Sept. 17, 2026 — BauMont Real Estate Capital and Swedish residential specialist SBF Fonder have completed the acquisition of three residential properties in central Stockholm, the partners announced Wednesday, marking the first deployments under their €500 million residential investment programme and BauMont's entry into the Nordic market.

The three assets — Smältan 2, Terrakottan 4, and Kilen 4 — comprise 85 apartments and commercial premises across two established central Stockholm districts. Two of the properties are located in Vasastan, and one sits in Norrmalm. The partnership plans to continue evaluating opportunities across the broader Stockholm region as it deploys capital.

Deal Structure and Assets

The Vasastan portfolio, consisting of Smältan 2 and Terrakottan 4, was acquired from F. Holmström Fastigheter AB. Together, the two properties total 63 apartments and commercial premises across approximately 4,000 square meters. Smältan 2, located at Karlbergsvägen 65 in the Birkastan micro-neighborhood of Vasastan, is a pre-war rental building dating to 1905 with 38 apartments and three commercial units spanning 2,401 square meters.

The third asset, Kilen 4, is located at Wallingatan 44 and Kammakargatan 51 in Norrmalm and comprises 22 apartments and five commercial premises across approximately 2,734 square meters. Its tenants include Industrifacket Metall, also known as IF Metall.

BauMont and SBF intend to actively manage all three properties, with targeted upgrades to selected apartments and common areas aimed at improving the resident experience and the long-term quality of the assets.

Partnership Scale and Strategy

The investment programme carries capacity of up to SEK 6 billion — roughly equivalent to €500 million to €550 million depending on exchange rates — with an initial deployment phase of up to SEK 2 billion and the ability to scale approximately three-fold. The strategy targets rental properties and unsold residential units, particularly in new developments, with value creation pursued through active asset management, selective repositioning, and execution across the investment lifecycle.

BauMont Real Estate Capital, formed in 2017 and led by Robert Balick and Frédéric Laurent, is a value-add real estate investment manager operating as part of M&G Real Estate's €39 billion platform. The firm maintains offices in London, Paris, and Frankfurt and focuses on well-located European assets where value can be created through intensive asset management and redevelopment, with an emphasis on office, residential, and mixed-use opportunities in supply-constrained markets.

SBF Fonder, regulated as an alternative investment fund manager and supervised by the Swedish Financial Supervisory Authority, has managed 15 residential funds with a total historic value exceeding SEK 10 billion since its founding in 2003. As of June 30, 2026, SBF Fonder manages approximately SEK 4.2 billion across 106 properties and roughly 3,200 apartments in 19 locations throughout Sweden.

Olivier Vellay, a partner at BauMont Real Estate Capital, said the transaction reflects conditions in the Nordic market. "This first investment reflects the strength of opportunities in the Nordics region, and Sweden in particular," Vellay said. "The residential market offers an attractive value proposition in a recovering market, coupled with strong market fundamentals. Together with SBF's local expertise and operational capabilities, we look forward to enhancing these assets and selectively growing BauMont's presence in the region."

Terje Björsell, CEO of SBF Fonder, said the acquisitions mark a meaningful step for the partnership. "With more than 20 years of experience in the Swedish residential market, we combine deep local market knowledge with a scalable, integrated platform," Björsell said. "Together with BauMont, we are now putting that experience into practice through these first acquisitions, which mark an important step in building our presence in Stockholm."

Stockholm Residential Market Context

The acquisitions come as Stockholm's rental housing market is characterized by structurally low vacancy and constrained new supply. Residential vacancy rates in Stockholm sit below 1%, and average rents across greater Stockholm reached approximately SEK 1,693 per square meter per year in 2025, a gain of roughly 6.5% year-over-year. Prime yields for newly produced residential assets in Stockholm compressed to around 3.80% to 3.85% by late 2025 and early 2026, with regulated new-production rents in top Stockholm submarkets running approximately SEK 2,900 to SEK 2,950 per square meter per year.

New supply has been constrained, a factor that supports rental fundamentals and investor appetite for stabilized multifamily stock in the city. Sweden's residential market is also underpinned by long-term population growth, which the partners cited as a driver of their entry into the region.

Nordic Expansion Outlook

The Stockholm acquisitions represent BauMont's first investments in the Nordic market. The firm's broader European strategy centers on acquiring assets in supply-constrained markets and managing them through multiple market cycles, including periods of volatility and capital dislocation. With SBF Fonder providing origination capabilities, local market knowledge, and an integrated operational platform, the partnership said it will continue to evaluate additional opportunities across the Stockholm region as the programme scales.

Sources: M&G Group Press Release, Sept. 17, 2026