Fabege acquires HagaHuset and develops a concept building for our era
HagaHuset was acquired with the aim of developing a Live-Work-Play concept building that will further boost Fabege’s business and meet the varying needs of tenants over time. The location of the building at the entrance of Haga National City Park reinforces the connection between city and park. The purchase price of Fortet 2 (HagaHuset) is SEK 172 million and Fabege will gain access as of 1 February 2017.
Fabege has come to an agreement with Peab to acquire Peab’s 50 per cent stake in Visio. Following the acquisition, Fabege will own 100 per cent of Visio, which owns development rights in Solna. Furthermore, Fabege is acquiring the Distansen 4, 6 and 7 properties in Ulriksdal from Peab.
Migrationsverket (the Swedish Migration Agency) is bringing large sections of the Stockholm region’s operations together under one roof at Grand Central Sundbyberg. The lease covers approximately 17,000 sqm of the building’s total office space of 36,000 sqm, and will continue for a period of at least 6 years. The annual rental value amounts to roughly SEK 45m. Occupancy is scheduled to take place after summer 2018.
To date, Fabege has secured green financing for a total of almost SEK 4bn and created scope for an additional approximately SEK 1.4bn via green bond financing. The latest is a green bank loan from Danske Bank, which is the first of the banks to offer improved terms for green loans, since the risk is deemed to be lower. A welcome break in the trend.
Fabege has signed an agreement to sell the Uarda 7 property, in Arenastaden, to Union Investment. The sale confirms once again the areas attractiveness for institutional investors. Fabege will continue to manage the property, retain the customer relationship and drive the development of Arenastaden.
Profit after tax for the period increased to SEK 4,346m (2,054), corresponding to earnings per share of SEK 26.28 (12.42). Profit before tax for the period rose to SEK 5,166m (2,637). Rental income amounted to SEK 1,573m (1,493) and net operating income to SEK 1,125m (1,080. In an identical portfolio, rental income rose by around 9 per cent and net operating income increased by roughly 10 per cent. The average yield requirement declined during the period to a rounded off figure of 4.70 per cent (4.94 at year-end).
Now that Svenska Spel, Åhléns and other tenants have departed from the Orgeln 7 property in the heart of Sundbyberg, Fabege has embarked on a major redevelopment/extension project. The investment amounts to SEK 944m, and it is estimated that the project will be completed in summer 2018. The new building has been named Grand Central Sundbyberg.