Fabege has vast expertise and extensive experience from running development projects. One objective is to attract longterm tenants to not yet fully developed properties that can be customised to meet specific customer requirements.
Land and properties are acquired, developed and then transferred to the Fabege’s investment portfolio or sold. Long-term planning is frequently undertaken in cooperation with the particular municipality, creating joint visions for optimal district planning. New builds and more extensive project development are undertaken in line with the principles of, for example, the Sweden Green Building Council (SGBC).
Responsibility for new builds and conversion projects, procurement and follow-up rests with the Projects Department, which comprises 13 employees and is divided into two groups: the Projects unit and Tenant Adaptations unit. The Projects Department is self-sufficient in terms of project expertise, while construction services are procured externally. The Tenant Adaptations unit takes care of minor adjustments.
This operation is extremely significant for customer satisfaction, since the premises can be customised to match tenant requirements with a limited investment. The development of properties is expected to provide a substantial contribution to group earnings.
During 2012
Total project investments in 2012 amounted to SEK 2,034m. Over the course of 2012, a number of major conversion projects were completed, including the properties Klamparen 10 at Kungsholmen (Stockholm), Uarda 1 and Uarda 5 in Arenastaden and Apotekaren 22 and Bocken 39 in Stockholm city.
The occupancy rate for these projects was generally high when they were transferred to Property Management. All of these projects were completed within the planned time schedule and cost framework.
The projects designated Nöten 4, Solna Strand and Skeppshandeln 1, Hammarby Sjöstad were initiated during the year and are planned for completion during 2014.
During 2012, a more distinct process for the handover of customer responsibility among the various Fabege units was introduced via various phases such as lease signing, premises customisation, occupancy and management.
Focus 2013
The aim is to maintain project volumes at a high level. The focus is on Arenastaden, but major projects will also be conducted at Hammarby Sjöstad and Solna Business Park. New builds will account for a larger share of projects compared with recent years. Future new production will be designed to meet the requirements of the BRE Environmental Assessment Method (BREEAM).
Projects in progress bigger than SEK 50m, per 31 December 2012
Property
designation |
Type of property |
Location |
Completion |
Rental
area, kvm |
Occupancy rate, %* |
Estimated rental value** |
Carrying amount |
Estimated investment, SEKm |
Of which occured, SEKm |
| Nöten 4 |
Office |
Solna Strand |
Q1-2014 |
51,026 |
92 |
96 |
880 |
690 |
328 |
| Skeppshandeln 1 |
Hotel |
Hammarby Sjöstad |
Q2-2014 |
13,710 |
83 |
41 |
154 |
549 |
103 |
| Uarda 1*** |
Office |
Arenastaden |
Q4-2012 |
41,079 |
64 |
83 |
920 |
542 |
459 |
| Total |
|
|
|
105,815 |
87 |
220 |
1,954 |
1,781 |
926 |
| Other Land and Project Properties |
538 |
|
|
| Other Development Properties |
302 |
|
|
| Total Project, Land and Development Properties |
2,794 |
|
|
* Operational occupancy rate as of 31 December 2012.
** For the largest on-going projects, annual rent can increase to SEK 220m (fully let) from SEK 55m in current annual rent as of 31 December 2012.
*** Information regarding area, rental value and carrying value pertain to the entire property. The investment pertains only to part of the property. |
* 31 december 2012