Hufvudstaden acquires Citypalatset property at Norrmalmstorg in Stockholm

Hufvudstaden acquires Citypalatset property at Norrmalmstorg in Stockholm Hufvudstaden has reached an agreement covering the acquisition of all shares in Beheer-en Beleggingsmaatschappij Gradoma B.V., which owns the Citypalatset property located at the Norrmalmstorg square in Stockholm. Transfer of share ownership is on October 2, 2000. The consideration paid for the shares plus assumed debt amounts to SEK 1,100 M and is based on a property value of SEK 1,100 M. The acquisition of Citypalatset is in line with Hufvudstaden's strategy to concentrate its property portfolio to central Stockholm and central Gothenburg. Citypalatset, which is a unique commercial property in the best location on the Norrmalmstorg square, includes the entire Packarhuset 4 block and has not been sold on the real estate market since it was built in 1932. Considering the central location of the property, Hufvudstaden projects that there are considerable coordination gains with Hufvudstaden's other properties in the so-called Golden Triangle of central Stockholm and the NK property on Hamngatan. The property offers many possibilities for future development, through such measures as increasing the retail space. The property is built on land with clear and free title and is one of Stockholm's most well-known buildings with a strong identity. The property is fully leased. The rentable floor space is about 15,000 square meters and is distributed as follows: Type of Floor space, % premises sq.m. Office 7,900 53 Hotel 2,800 18 Stores, 3,700 25 restaurants Other 600 4 15,000 100 The rental value of Citypalatset annually, based on current contracts, amounts to about SEK 36 M, excluding property tax surcharge. Today's market rents exceed this rental value substantially. Hufvudstaden assesses that the current market rent for the property on an annual basis amounts to SEK 65-75 M, excluding property tax surcharge. Stockholm, August 2, 2000 HUFVUDSTADEN AB (publ) Ivo Stopner President Questions will be answered by Ivo Stopner or Clas Hjorth, telephone +46 8 762 90 00. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/08/02/20000904BIT00230/bit0001.doc http://www.bit.se/bitonline/2000/08/02/20000904BIT00230/bit0002.pdf

About Us

Hufvudstaden provides office and retailing premises in prime locations in Stockholm and Gothenburg. The Company was founded in 1915 and is today one of Sweden's largest listed property companies and one of the strongest brands in the country in the property sector.

Subscribe