Rutley European Property has bought a Swedish property portfolio for SEK1bn (£74.9m), reflecting a gross initial yield of 5.85%

The 781,617 sq ft (72,614 sq m) office portfolio consists of five properties in Karlstad, central Sweden.

The portfolio is 96.5% let and generates a yearly income of SEK58.1m (£4.3m). Around 68% of the tenants are public bodies and the portfolio’s average unexpired lease term is 4.65 years.

The deal will complete in June.

Nick Burnell, partner at Rutley Capital Partners, said: ‘This is a significant acquisition for the fund, and brings attractive geographical diversity to the portfolio.’