The company continuously analyses its portfolio to take advantage of opportunities to increase capital growth. Fabege aims to acquire properties with good growth potential, located within the company’s sub-markets. We plan to sell the properties at the right time to realise accrued value.
Location, condition and vacancies are key factors determining the growth potential of a property. A fully let property with modern and efficient premises but deemed to have limited potential for rent increases and capital growth could thus become a candidate for divestment, unless it forms a strategic part of a property cluster, for instance.
As a major player in a significant market, Fabege has built good relationships with local authorities and policy-makers. We also have extensive experience and knowledge about local markets, properties, development plans and other players.
This department has ten employees. Valuations of the properties are made by internal valuation experts as well as independent external valuation agencies. A model whereby all properties, 25 per cent per quarter, are subject to external appraisal every quarter ensures a realistic market valuation of the property portfolio.
Activities in 2011
In 2011, work on concentrating the portfolio was essentially completed. Some 11 properties were divested at a total value of SEK 936m and five properties were acquired at a value of SEK 518m. All acquisitions were made in Arenastaden, which is a prioritised development area. The properties that remain outside the prioritised submarkets are primarily land properties.
Focus 2012
In 2012, Fabege primarily focused on monitoring and reinforcing its market position. The company will also continue to focus intently on optimising value and highlighting the opportunities in the portfolio. During the year, we will also be open to acquisition opportunities in our strategic markets, which is entirely in line with Fabege’s business concept.