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.
The Friends Arena is a central part of Arenastaden, which is one of Fabege’s most significant urban development areas. Following the acquisition, Fabege and the Swedish Football Association (Svenska Fotbollförbundet, SvFF) will together pursue the continued development of the arena.
One condition for the transaction has been the completion of a previously planned capital contribution. As a result of the capital contribution, Arenabolaget is gaining the Nationalarenan 9 property, ‘Arenagate’, which comprises the entrance to the arena. This restructuring will substantially improve the future liquidity of Arenabolaget, both through the redemption of expensive financing solutions and through the repayment of loans. One condition for the implementation of the transaction is that approval is obtained from theCity Councilin Solna.
The new ownership set-up and capital contribution to ABS mean that Fabege’s net exposure in the balance sheet remains unchanged. The estimated impact on earnings in 2017 is expected to improve in comparison with the outcome for 2016, despite a larger holding.
Fabege’s holding after the restructuring amounts to 66.7 per cent, which means that Fabege is taking greater responsibility for future earnings. Through the equal division of ownership in the limited partnership ABS AB (50/50), Fabege and SvFF, as equal parties with an equal interest, will have joint responsibility for the future development of ABS. ABS will not be consolidated into the Fabege Group, but will instead continue to report its earnings as an associated company.
- “Arenabolaget is being strengthened as a result, and Fabege will now, together with SvFF, be given improved conditions for pursuing the arena’s long-term future development,” commented Christian Hermelin, CEO of Fabege AB.