The Folksam Group’s long-term real estate strategy primarily focuses on investing in attractive properties for residential and commercial use in growth regions across Sweden. The buildings in the portfolio have been constructed within the past 20 years. Approximately 90 percent of rental income is derived from residential units, while the remaining 10 percent comes from parking and commercial premises. Geographically, the portfolio is well diversified: 55 percent of rental income originates from the Stockholm and Mälardalen region, 35 percent from Malmö and Lund, and 10 percent from Karlstad and Östersund. The seller is SEB Asset Management through its three real estate funds Domestica Bostäder I, III, and IV. Closing is scheduled for early June 2026.

The majority of the properties are already environmentally certified or will be certified. They will be integrated into the Folksam Group’s systematic sustainability framework, with a focus on high environmental performance and contributing to established climate targets.

“For us, it is about investing our customers’ pension capital in a way that delivers stable returns over time while also contributing positively to society. Modern rental housing in attractive regions meets both of these objectives,” says Camilla Larsson, CEO of KPA Pension.

“We have, over an extended period, built attractive residential portfolios within these funds. It is positive that these are now being transferred to a financially strong and long-term owner such as the Folksam Group, ensuring high-quality management and security for tenants. The transaction also enables value realization, capital distribution to investors, and frees up resources for new investment opportunities within our fund platform,” says Björn Arvidsson, portfolio manager at SEB Asset Management.

“This is a portfolio of modern residential properties in strong locations, with rent levels that compare well to new production. Altogether, this supports stable occupancy and an attractive long-term return, while also strengthening our presence in growth regions,” says Jonas Bjuggren, Head of Real Estate at the Folksam Group.

The transaction is subject to approval by the Swedish Competition Authority due to its size.

The Folksam Group is one of Sweden’s largest investors and manages approximately SEK 68 billion in directly owned real estate. In total, the group manages more than SEK 990 billion, including unit-linked insurance assets. Customer funds are to generate solid returns while also contributing to the transition toward a more sustainable society.

KPA Pension’s mandate is to provide employees in municipalities and regions with secure pensions through long-term investments that contribute to sustainable societal development. The acquisition is a clear example of how KPA Pension creates value and strengthens the conditions for stable long-term returns for its customers.

The Folksam Group was advised in the transaction by Brick Advokat, Svalner Atlas Advisors, and Anthesis. Colliers, Magnusson, and Causey Westling acted as advisors to the selling funds.