Fabege acquires the property Kabelverket 2 in Älvsjö from Revelop. It consists of four office buildings with a floor space of approximately 22,000 sqm. These were built for Ericsson in 1996 but are now fully let to other tenants. The property also includes an older building from 1917 and future project opportunities in a currently ongoing land development plan. The purchase price before deduction of deferred tax amounts to SEK 812m and the annual rental income is approximately SEK 50m. The transfer of ownership will occur on 30 April 2022.
The City of Stockholm has launched a drive to correct the imbalance in office space between southern and northern Stockholm and has identified Älvsjö as an important future office hub to the south. The commuter train station, which is already an interchange for several lines, will in the coming years be joined by both the metro and a tram line (Spårväg Syd).
“We strongly believe in future growth in southern Stockholm and with this acquisition we are obtaining a good property with future potential and stable tenants that generate strong cash flow, in a location that fits well with our development strategy in the south of the city, stretching from Hammarby Sjöstad to Flemingsberg,” comments Stefan Dahlbo, President and CEO of Fabege.
In addition to the office space, there is a good-sized underground car park with 350 parking spaces. The purchase is taking place in the form of a corporate acquisition.
“The acquisition gives us additional well-functioning, good offices with competitive rents in a growth area with close proximity to the exhibition centre in Älvsjö and new residential development, and high accessibility to public transport. Revelop has managed and developed the property well. We are now delighted that Kabelverket 2 is joining our portfolio and are very pleased with the deal,” says Johan Zachrisson, Director of Business Development at Fabege.