Nordic deal volume at all-time high by a mile!

The Nordic property markets set a new groundbreaking record with a transaction volume of more than EUR 71 billion in 2021, which is 65% higher than last year and by far the highest volume ever recorded for a single year in the Nordics. Both volumes and number of deals have increased in all Nordic countries, according to new figures from property advisor Pangea Property Partners.

“This is an extraordinary year with high transaction activity all across the Nordics. After a strong first half of the year, activity has just accelerated during the second half, ending up with a record-high transaction volume that will be difficult to beat,” says Mikael Söderlundh, Head of Research & Partner at Pangea Property Partners.

All-time high in Sweden, Norway and Denmark
In Sweden, the transaction volume has increased 93 percent to EUR 35.0bn in 2021, representing half of the Nordic transaction market. In Norway and Denmark, volumes have increased significantly as well with 54 percent and 61 percent respectively, while the volume in Finland increased marginally with 6 percent.

“We have seen increased activity in practically every corner of the market, and there has been high season from January to December this year. Volumes have also been boosted by several company takeovers and an ongoing consolidation in the Nordic listed sector. This has been a year like no other,” says Bård Bjølgerud, CEO & Partner at Pangea Property Partners.

The volumes in Sweden, Norway and Denmark are new all-time highs for each market. The total number of transactions in the Nordics exceeded 1,300 for the first time and the average deal size increased from EUR 41 million to EUR 53 million.

Based on property transactions above EUR 5 million

Continued strong interest for the Nordics
Despite continued travel restrictions, foreign buyers accounted for 33 percent of the Nordic transaction volume in 2021. Foreign sellers accounted for only 15 percent of the volume, which gave a positive capital inflow to the region for the sixth consecutive year. In Finland and Denmark, the share of foreign buyers was more than 50 percent.

The largest property segment in 2021 was residentials accounting for 32 percent of the volume, followed by office with 23 percent, and logistics with 17 percent. The volume of office transactions increased from EUR 8.7bn in 2020 to EUR 16.7bn in 2021, driven by several corporate deals.

The largest property transactions in the Nordic region in 2021 are:

1. Heimstaden’s acquisition of a residential portfolio in Scandinavia and Germany from Akelius (SEK 92.5bn)¹
2. Corem’s acquisition of Klövern with assets in Sweden, Denmark, and the US (SEK 53.1bn)²
3. Castellum’s acquisition of Kungsleden in Sweden (SEK 43.2bn)
4. Entra’s acquisition of Oslo Areal in Norway (NOK 13.6bn)
5. SBB’s and Kåpan’s joint acquisition of a public sector portfolio in Sweden (SEK 10.0bn)
6. Balder’s acquisition of Asset Buyout Partners in Norway from HitecVision (NOK 9.0bn)³

¹Value including German portfolio ²Value in Sweden and Denmark ³Value post deduction of deferred tax

A year for the record books for Pangea
Pangea Property Partners was voted #1 property advisor in the Nordics by Euromoney in 2021 after advising on more than 110 property transactions and advisory mandates with an underlying property value exceeding SEK 165bn this year. Pangea has, for example, advised Akelius on the SEK 92.5bn sale of the residential portfolio in Sweden, Denmark, and Germany in the largest private real estate transaction in the Nordics ever. In addition to this transaction, Pangea has a transaction volume of close to SEK 75bn across the Nordic region.

Among the larger transactions in the Nordic region, Pangea has advised Entra on the NOK 13.6bn acquisition of Oslo Areal, and HitecVision on the NOK 9.0bn sale of Asset Buyout Partners to Balder, both record-breaking transactions in Norway. In addition, Pangea advised Aurora Eiendom on the NOK 4.8bn acquisition of five shopping centres and the NOK 2.0bn equity capital issue, as well as the debt financing and IPO.

“We are very proud to have advised on three of the top six transactions in the Nordics this year, and all the top three in Norway. In addition, we have advised on a broad range of other transactions both cross-border and cross segments. Pangea is expanding, and this year we have added Project Finance and Debt Advisory to our services. We have also hired 14 new and very competent employees in Norway and Sweden, who have contributed to build our very strong order backlog for 2022”, says Bjølgerud.