Stockholm (NordSIP) – The latest investment announcements from Sweden’s public pension fund AP7 suggests the asset owner has decided to use sustainable assets to support stability and law and order infrastructure. The investments include the direct purchase of a portfolio of properties from Castellum as well as investing in a social bonds aimed at funding public real estate in vulnerable areas.
Secura Fastigheter
On February 20th, AP7 announced the establishment of Secura Fastigheter AB, a new Nordic real estate company, focusing on a portfolio of nine Swedish rule of law infrastructure properties worth SEK 5.6 billion. These properties are to be acquired from Castellum in the second and third quarters of 2026 and total approximately 110,000 square metres of lettable area, in the Gothenburg region, Örebro, Malmö and Jönköping. REIN Capital Partners, Setterwalls and Bloc Tax acted as advisers to AP7 on this investment.
Secura Fastigheter’s properties are fully let to public sector tenants, including the Swedish National Courts Administration, the Swedish Police Authority and the Swedish Prison and Probation Service. These tenants operate functions that are critical to the rule of law and core public services in Sweden and are typically associated with long-term lease contracts, supporting strong income visibility and stable cash flows. The portfolio has a weighted average unexpired lease term (WAULT) of approximately 11 years.
“The portfolio provides a strong foundation for the establishment of our new real estate company, Secura. The assets are of high quality, demonstrate a clear sustainability profile and generate stable cash flows. As a responsible and committed owner, we see good potential to build a leading company focused on quality, security and long-term value creation,” says Maria Björklund, Head of Alternative Investments at AP7.
AP7’s objective is to gradually build a diversified and sustainable real estate portfolio, with an initial focus on properties for the justice system and complementary segments within social infrastructure. The ambition is to reach a portfolio value of approximately SEK 25 billion within five years.
Vulnerable Real Estate Social Bonds
More recently, AP7’s Fixed Income Fund announced the investment SEK 1 billion in a social bond from real estate company Balder financing rental housing in areas classified by the Swedish Police Authority as vulnerable or particularly vulnerable. The bond is earmarked to promote housing with high social significance and is the first purely social bond in Swedish kronor to be issued by a Swedish property company. Balder’s bond is issued under the company’s framework for green and social financing, which is in accordance with ICMA’s Social Bond Principles. AP7 is the sole investor.
“AP7’s goal is to continuously increase the capital invested in sustainable bonds. The investment in this social bond is part of our long-term strategy to direct capital towards solutions that have real impacts,” says Charlotte Sillén, Head of Fixed Income Management at AP7.
In 2025, AP7’s investment opportunities were expanded to more formats of bonds in addition to green ones, such as social and sustainability-linked bonds.
“The investment fits well into our in-depth theme Sustainable Construction, where we focus on developing and disseminating best practice for how capital can contribute to both social and environmental impacts. We welcome the establishment of more social bonds on the Swedish market,” says Marika Hilldoff from AP7’s asset management and responsible for AP7’s theme Sustainable Construction.
