Victoria Park and Trianon acquire housing units in Malmö for SEK 795 M
Victoria Park AB and Fastighets AB Trianon have signed an agreement to acquire a property portfolio of 722 flats and a small number of commercial premises, with a total lettable area of approximately 47,700 square metres. The properties are located in Lindängen, Malmö, and the acquisition will take place for an underlying property value of SEK 795 M. The seller is Willhem and possession is due to be transferred on 1 March 2018.
“It is gratifying to carry out this transaction together with Trianon. We already have a significant share of our total portfolio in Malmö, which provides us with efficient and scalable property management,” says Victoria Park’s CEO Peter Strand.
The portfolio, which has been partly renovated in recent years, is fully leased. The acquisition will take place in company form and is based on an underlying property value of SEK 795 M, where the preliminary purchase consideration for shares totals approximately SEK 551 M, of which Victoria Park will pay about SEK 231 M and Trianon about SEK 320 M. Both Victoria Park and Trianon will finance the acquisition with existing cash and by raising new loans, in accordance with company policies. Possession is scheduled for 1 March 2018 when the purchase consideration is to be paid.
The acquired company will, after possession, be divided and Victoria Park and Trianon will consolidate their respective parts. Victoria Park will be a long-term owner of almost 300 flats and Trianon of just over 400 flats. The property value is broken down into SEK 462 M for Trianon’s share, corresponding to approximately SEK 16,900 per square metre, with an average residential rent of about SEK 1,350 per square metre. Victoria Park’s share has a property value of SEK 333 M, corresponding to approximately SEK 16,400 per square metre, with an average residential rent of about SEK 1,200 per square metre. The division is expected to be complete by 31 March 2018.
“The properties are located close to our existing property portfolio at Lindängen in Malmö, and we view this as a strategic opportunity to increase our presence in the area and will offer further efficiencies in our property management. We are delighted to conduct this acquisition together with Victoria Park. It will strengthen the continued development process in the area,” says Trianon’s CEO Olof Andersson.
For further information, please contact
Peter Strand, CEO, +46 (0)70 588 16 61, firstname.lastname@example.org
Tommy Åstrand, CFO, +46 (0)70 545 59 97, email@example.com
Olof Andersson, CEO, +46 (0)40 611 34 97, firstname.lastname@example.org
Mari-Louise Hedbys, Deputy CEO, CFO, +46 (0)733 70 75 39, email@example.com
This constitutes information that Victoria Park AB and Fastighets AB Trianon are legally obliged to publish according to the EU Market Abuse Regulation. The information was issued for publication by Peter Strand and Olof Andersson on 11 December 2017 at 1:15 p.m.
Victoria Park AB (publ) is a listed property company, which, through long-term management and social responsibility for more secure housing, creates value in an expanding property portfolio in growth districts in Sweden. Victoria Park's property portfolio amounts to 1,062,000 square metres, comprising more than 13,425 flats, with a market value of SEK 14.6 billion. The shares in Victoria Park are listed for trading on Nasdaq Stockholm Mid Cap. For more information, visit www.victoriapark.se
Trianon is an entrepreneurial property company in Malmö. The company was founded in 1973 and has witnessed strong growth in property value, particularly since 2006, through its own management, development and acquisitions. Trianon’s property portfolio comprises 44 properties with 223,000 square metres of leasable area, divided into about 50 percent housing and 50 percent commercial and community service properties. The property portfolio had a market value on 30 September 2017 of approximately SEK 4.6 Bn. The head office is located in Malmö. Trianon’s share is listed on Nasdaq First North Premier, with the ticker symbol TRIAN B. The certified adviser is Avanza, +46 (0)8 4094 21 20. For more information, visit www.trianon.se
Victoria Park AB (publ), Box 2, SE-201 20 Malmö, Tel +46 (0)40 16 74 40, Corp. Reg. No 556695-0738, Head Office Malmö, www.victoriapark.se
Fastighets AB Trianon (publ), Stenhuggaregatan 2, SE-211 41 Malmö, Tel +46 (0)40 611 34 00, Corp. Reg. No 556183-0281, Head Office Malmö, www.trianon.se