Swedish funds, AP1 and AP2, will set up a joint company to invest a combined $704 million in direct commercial real estate, Pensions & Investments reports. Funding will come equally from the $34.3 billion AP1 and the $35 billion AP2.

The new company, which will not invest in Swedish real estate, will be chaired by Rickard Backlund, who retired as CEO of Aberdeen Property Investors in September 2010. Stockholm-based financier and asset management group, Catella, is helping the funds set up the company and identify office properties in major European cities.

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