O'Donnell property portfolio nears €1bn

The publicly declared value of the international property portfolio being amassed by Dublin solicitor Brian O'Donnell and his wife Dr Mary Patricia O'Donnell has come close to €1 billion after a €285 million deal in Sweden, their first in Scandinavia.

The couple's investment vehicle Vico Capital has acquired the Fatburen building in Stockholm, a landmark 520,000sq ft building which houses the headquarters of the Swedish revenue authorities.

Danish group Keops realised SEK 2.66 billion (€285 million) from the sale, which has been described as the largest commercial property transaction in Sweden so far this year.

The deal marks a departure for the O'Donnells from the London market, where they have significant investments in the city centre and in Canary Wharf.

The Swedish deal, combined with three British transactions in the past two years, brings the declared value of their international assets to €929 million.

Such investments are highly leveraged, but do not include properties held by Vico in Ireland, the US and elsewhere in Europe. The firm is highly acquisitive - it bought a number of Irish properties last year - so the total value of its assets under management is likely to exceed €1 billion.

Completed in 2005, the Fatburen building was designed by Swedish architect Gert Wingardh. Comprising 14 office wings on nine floors, the interior of the building was inspired by the Bauhaus architecture of the 1920s. Vico said the building was fully let with 93 per cent of the office space occupied by Swedish state tenants.

"Vico Capital was attracted to the Stockholm market as it is the third largest market in Europe after London and Paris. Sweden's economy turned in a much better than expected performance in 2006 and the upturn has impacted very positively on the property market," the firm said.

"Stockholm's risk-adjusted total return ratings continue to rise from seventh place in 2005 to third in 2007. Prospects for rental growth, development and supply-demand balance are all strong."

Vico did not disclose the rent yields on the investment but said the building was located in central Stockholm, an area in which "yields have dropped to 4.5 per cent and are expected to compress further".

A former managing partner of William Fry solicitors, Mr O'Donnell heads corporate law firm Brian O'Donnell & Partners. Vico's strategy is to acquire investment grade office building for itself and for investors.

Last August, Vico bought out the Sanctuary Buildings at Great Smith Street in London, near Westminster, for £170 million (€252 million).