Swedish pension provider Alecta has lost an arbitration case against Heimstaden Investment AB, after a tribunal issued a final, non-appealable award in favour of the real estate group.

The proceedings, initiated in December 2024, related to whether the establishment of Heim Global Investor AS, by Fredensborg AS and its founder Ivar Tollefsen, breached the non-compete provisions in the shareholders’ agreement governing Heimstaden Bostad, in which Alecta is the largest investor.

Alecta argued the vehicle competed with Heimstaden Bostad’s business and therefore contravened the agreement. Heimstaden maintained that Heimstaden Bostad is not active in fund management and that the activities in question fall under an exemption to the non-compete clause.

The tribunal confirmed Heimstaden’s interpretation.

Alecta CEO, Peder Hasslev, said the fund had “taken note of the arbitration committee’s decision”, adding that it provides “more clarity on what applies in this matter”.

Heimstaden AB co-CEO, Christian Fladeland, welcomed the outcome.

“We are pleased that the arbitral tribunal has confirmed our interpretation of the Shareholders Agreement. We look forward to leaving this dispute behind us and continue with what we do best – and what we have continued to do throughout these proceedings; to create steadily improved results and value for all Heimstaden Bostad shareholders,” he said.

The ruling comes as the relationship between the two shareholders has been under pressure. In February 2024, Alecta wrote off SEK 12.7bn, around 25 per cent of the value of its holding in Heimstaden Bostad, after rising interest rates contributed to a decline in property valuations.

Alecta had invested approximately SEK 50bn in the company, its single largest holding.

This led Sweden’s Financial Supervisory Authority (FSA) to launch an investigation in September 2023 into Alecta’s investments in Heimstaden Bostad.

The pension provider has since implemented measures set out in its improvement programme and addressed the shortcomings identified in 2024 arguing that it remains a "strong and stable" company despite previous volatility.

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