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 takes on greater responsibility for Friends Arena
Fabege is to acquire the City of Solna, Peab and Jernhusen’s stakes in Arenabolaget i Solna KB, which owns the Nationalarenan 1 property, better known as the Friends Arena.
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.
Fabege reports additional consideration of SEK 200m regarding property sale
In 2010, Fabege sold a property portfolio to Profi Fastigheter. The parties then jointly conducted a detailed work plan to enable the development of housing on two of the properties. Profi Fastigheter has now agreed on the implementation of the housing project with a third party which leads to an additional consideration will be paid to Fabege.
Fabege has sold the Pan 1 property in Gamla Stan to AB Parts & Paomees. The property is located at Stora Nygatan 40/Lilla Nygatan 23 and includes approximately 3,150 sqm of lettable area, most of which is office space.
At Fabege’s Annual General Meeting on 11 April 2016, it was decided that the Nominating Committee, whose tasks include submitting proposals to Members of the Board, would primarily comprise representatives of the four largest shareholders. The names of the Nominating Committee's members and the owners they represent are to be announced no later than six months before the AGM and are based on the known ownership immediately before the announcement.
Fabege continues the ambition to increase the green financing by issuing a new green bond within the green framework of Nya Svensk FastighetsFinansiering AB (Nya SFF).
Profit after tax for the period increased to SEK 2,730m (1,535), corresponding to earnings per share of SEK 16.51 (9.28). Profit before tax for the period increased to SEK 3,115m (1,951). In an identical portfolio, rental income rose by 7 per cent and net operating income increased by just over 5 per cent.
Fabege supports Arne Ljungkvist’s new global anti-doping campaign
Swedish anti-doping campaigner Arne Ljungqvist is urging society, the business community and the world of sport to join forces to combat the spread of doping. Together with Fabege a new symbol is being launched, along with the first two sculptures in a series that will be erected in Monaco and Stockholm. The global campaign will go under the hashtag #pureforsure and will highlight key issues in pure sport and public health.
Fabege is acquiring the property Sadelplatsen 1, Järva Krog. The transaction has a total price of SEK 172.5m. Handover will take place on June 8, 2016. The seller is an Uppsala -based consortium, with among others Olle Olsson Holding AB as partner.
3’s new head office to become a landmark in Söderstaden
Fabege and 3 (HI3G Access) have signed a 10-year green rental agreement for office premises covering approximately 14,700 sqm in the property Pelaren 1, with an annual rental value of around SEK 39m, not including supplements.
Ambea, one of Sweden’s leading companies in the area of care and assistance, has decided to leave Solna Strand and move to Arenastaden in August 2017. Fabege and Ambea have signed a 7-year rental agreement for premises covering approximately 3,600 square metres, with an average rental value of just over SEK 10.5m, not including supplements. The company’s new address will be Evenemangsgatan 21, and it will have Siemens and H&M as neighbours in the same building.