We’re looking forward to getting to know Trustly’s employees and to adapting the offices in order to reflect both the company’s brand and its core values. There is a substantial level of interest in the remaining 3,000 sqm in the building, and we hope to be able to welcome more new and exciting tenants to the district in the near future
We’ve long been attracted by the location of the building, its shape, wealth of details and, in particular, the artistic thoughtfulness in the little park. There are unique opportunities here to create an attractive concept, and we’re delighted that Kom Hotel will be refining this gem
Our collaboration as an urban developer with Generation Pep and the City of Solna to help boost opportunities for movement and exercise in our local environment is an important and exciting partnership. Gen Pep’s concept of combining adult gym equipment with play equipment for children is an intelligent way of encouraging a healthy lifestyle, both for our customers and for those who live in the area, so it feels completely natural for us to be on board making sure the parks are created
The new buildings rights will allow us to create a fantastic entrance to Arenastaden. We have high ambitions in relation to both the development of Dalvägen and the creation of the new districts, and we’re delighted that the initial steps towards the new vision for Solna Station have now been taken
The positive development of Arenastaden, and in particular Friends Arena, is generating a growing need for hotels situated in the vicinity. Nordic Choice Hotel’s new hotel initiative will create improved conditions for both Friends Arena and Mall of Scandinavia, as well as companies’ visitors and employees.
We’re delighted about the continued strong demand for our green bonds and our increased green financing opportunities. Half of Fabege's funding is now green and we are positively observing the increasingly responsible financial market.
We are very pleased to be able to continue developing our relationship with ICA. It is very much in line with our strategy of being customer-focused and flexible.
Resedan was a somewhat lonely item in our portfolio and Probitas was an obvious buyer, as it already owns a property in that area
Fabege considers it important to continue operating as a strong, long-term owner and administrator in Arenastaden. The latest transaction aligns with the Fabege business model which aims to boost the potential of the portfolio by selling modern, fully refined properties so as to free up capital for value-generating project investments. In Arenastaden alone, Fabege owns almost 200,000 sqm of commercial development rights, which are set to be developed over the coming years. Through this latest sale, we are creating space to continue completing value-generating investments in our chosen areas. The property is a good match for the investment market’s demand for modern offices in attractive locations, fully leased and with long-term contracts. In the same way as previously, Fabege will be responsible for operation and administration, and I’m delighted with the working relationship built on trust we enjoy with Union Investment.
“Our ambition is to increase the proportion of capital market financing primarily via our green bond programme. The credit rating from Moody’s puts us in a better position for seeking financing on favourable terms.”
“We’ve now taken the next step in our financial profiling. Fabege is keen to make investors aware of our high quality and our long-term approach. We’re delighted to have received this acknowledgement of the company’s financial stability via the rating from Moody’s.”
Green funding is an important part of our sustainability work and by the end of 2017, 47 per cent of our total funding was green. Receiving the highest rating from Moody's is a quality measurement that we are very proud of.
We’re looking forward to welcoming Skolverket to Solna Business Park. Skolverket will gain good, attractive premises that will support their activities, in a sustainable district with excellent communications.
- I am particularly pleased with the two major lettings to Swedbank and Bilia, which pave the way for continued value-adding project development. The occupancy rate in the project portfolio now amounts to 88 per cent. Projects continued to deliver at a high level – the return on invested capital during the period was 66 per cent. Fabege is an organisation that is capable of exploiting opportunities to create value. With our stable cash flow in property management and our well located project portfolio, I look forward to our positive trend continuing into 2018
It feels great and exciting to be working with Skanska, which has shown great enthusiasm and commitment to partnering with us on this project. Skanska is a cutting edge enterprise, working hard to reduce environmental impact, and placing great emphasis on occupational health and safety at its construction sites. Fabege is growing; several projects are under way and we are keen to team up with contractors who prioritise areas that are important to us, and who live up to our demanding standards.
We are very pleased with the solution we have identified together with Bilia, as a result of which they will remain in a location that has become increasingly attractive over the years as a result of the proximity to Arenastaden, Hagaparken and the expanded public transport options at Solna station, as well as now being in a brand new and vibrant city district with both residential and commercial properties.
We are looking forward to working with Swedbank for many years to come and welcoming the bank's employees to Grand Central Sundbyberg.
We’re delighted about the strong demand for our green bonds and our increased green financing opportunities. The extended framework is consistent with our efforts to finance the company using green funding, and sits well with our ambitious sustainability work.
We are well-equipped to take advantage of the current positive market conditions. Our projects continue to deliver at a high level – yield on capital invested during the first six months of the year was 54 percent. As project properties are completed and tenants move in, we are beginning to see the positive effects of the increased cash flow in our income statement. With a committed organisation and considerable potential in our market and our property portfolio, I look forward to continued favourable development in 2017 and 2018.
City district development is all about creating an attractive setting where the people who live, work and spend time in the area can really enjoy their everyday lives. When building a great many residences, offices and commercial premises, it is essential to remember the children. How can we help citizens put together their everyday lives, and where would be good places to establish schools and preschool facilities? In Råsunda, we have worked closely with the city authorities to come up with an excellent holistic solution for a great many people.
If we succeed in reducing the amount of transportation to and from our areas, then we’ve come a long way towards creating a more sustainable district.
In AEG, with its extensive international network and experience, we’ve found a partner with an excellent reputation with whom we can continue to develop the events experience at Friends Arena while positioning the Stockholm region internationally.
We’re seeing a clear increase in interest for the south side of Stockholm, which we as urban developers think is positive in terms of creating a good balance in the city. Thanks to strong brands making their way southwards, the positive trend of increased service, more frequent public transport services and an inner-city feel will continue at a rapid pace.
Christian Hermelin, CEO
2016 was characterized by good market conditions combined with strong operational delivery and thereby large increases in value.Our healthy sales allow scope for continued project investment and new acquisitions, which will help increase future potential
We will continue to increase our green financing. Green financing now represents 21 percent of our total funding. It is also gratifying that the price differentiation we have seen on green bank loans now also can be seen on the green bond market
We’re genuinely looking forward to welcoming a dynamic, fast-growing technology company to the area. Snow Software will make a positive contribution to the business culture we have here.
We’re delighted that Migrationsverket has decided to remain with Fabege. Our long-standing and highly successful relationship meant that it was extremely important to us to identify a great office and location for their operations.
The fact that the financial market has caught on and is now encouraging sustainability is a break in the trend. It’s positive to see the financial market increasingly taking responsibility for the climate issue by offering various green financing alternatives. They have huge opportunities to influence developments and in our dialogue with the banks we are now seeing a clear increase in interest in these issues.
- The issue is in line with our commitment to fund ourselves in a green way and is a good fit with our ambitious sustainability efforts.
The property favourably matches the demand in the investor market, meaning that it is fully developed, fully let and has long-term tenant. The sale creates scope for additional value-generating investments. I am delighted with this transaction, which is completely in line with our long-term strategy and am also gratified to be entrusted to continue managing the property and to take care of the relationship with the customers.
We’re delighted about the creation of residential development rights on the properties, allowing the additional consideration to be realised.
- The issue is in line with our commitment to fund ourselves in a green way and is a good fit with our ambitious sustainability efforts.
Both the property and rental markets remain strong, with accelerating rent levels and rising property values. We achieved high earnings in the first half of the year and the conditions are in place for strong earnings for the full year 2016. More completed projects will increase rental volumes which, combined with continued operational efficiency and low interest expense, is expected to generate better profit from property management.
Christian Hermelin, CEO at Fabege.
This transaction allows us to create the opportunity for further development in an area in close proximity to our other holdings in Solna. The property’s location means that it has the potential to become an important part of our ongoing structural measures.
- 3 will have its very own landmark featuring attractive architecture, and the office will become a symbol of the rapidly emerging Söderstaden. With its decision to relocate its head office here, 3 has again shown that it is at the cutting edge of developments, and the company will definitely become an important stakeholder in the future development of southern Stockholm’s key business hub.
We are of course very pleased with the continued strong interest in Arenastaden and welcome Ambea to the area in summer 2017.
-We are delighted to be able to continue our objective of financing our operations through green programmes, at the same time as taking the lead in developing the market for green funding. This favourably matches our ambitious sustainability work,” comments Åsa Bergström, Deputy CEO and Chief Financial Officer of Fabege.
Fabege had the capacity and driving force to capitalise on the favourable conditions in the market. Successively during the year, we renegotiated rents at increasingly higher levels, we signed leases with new customers and we continued work to make our property management and our value creation projects more efficient. As a result of all of this, we paved the way for the strong value growth that is now visible in our earnings.
Although we have learned a lot about sustainable urban development in our work with Arenastaden, we are looking forward to fine-tuning our processes and learning more from the best practices of others. Urban development projects are faced with many challenges associated with the development of a vibrant, accessible and service-oriented city that supports far-reaching climate and transportation targets. The importance of cooperation to achieve success in the development of tomorrow’s cities cannot be stressed enough.
“We are very happy that our work has attracted this type of attention. As a responsible city district developer, we are naturally passionate about public transport services and commuting by bicycle, and changed travel patterns are often beneficial for both the individual and society.*
“We have focused on sustainability for more than ten years and I am pleased to see how high these issues have risen up the agenda. Our customers are setting tougher requirements, thereby continuously motivating us to take the next step,” says Christian Hermelin, CEO of Fabege.
Klaus Hansen Vikström, Deputy CEO and Director of Business Development at Fabege.
Christian Hermelin, CEO of Fabege
Fabege is already a major property owner in Solna Business Park and, as a result of this acquisition, we will be able to continue the development of new offices in the area.”
“The rate of business activity was high throughout the year, not only on the transaction side but also in property management and project operations. We noted record levels of net lettings, which enabled us to increase the pace of development of our project portfolio, with a number of major ongoing projects that extend a couple of years into the future. While the projects continue to generate value, we also noted strong value growth in our modern and well-located property management portfolio during the year
“We are naturally delighted to welcome one of Sweden’s largest companies to Arenastaden. By the time TeliaSonera moves to the new building, the offering of services in the area will match that of the City, in one of Stockholm’s best locations in terms of transport links. At Arenastaden, we are endeavouring to create a living city district and we are convinced that TeliaSonera’s employees will have a stimulating and comfortable work environment.
“Overall, 2012 was a successful year for all of Fabege’s areas of operation. Profit from property management improved and both the management portfolio and development portfolio contributed to favourable value growth,“ Christian Hermelin Fabege’s CEO says.
“Although uncertainty concerning the economic outlook is considerable, Fabege is financial well equipped with a property portfolio in good locations with favourable development potential,” Christian Hermelin concludes.