Co-op apartment projects converted into rental apartments and property transactions completed in fourth quarter 2017
Wallenstam has decided to convert three ongoing co-op apartment projects into rental apartments, involving about 290 apartments in total. During the quarter, a number of property transactions were completed where Wallenstam took possession of properties, co-op premises and land with a property value of SEK 500 million and vacated properties with a property value of SEK 322 million.
As previously communicated, the first phase in the co-op apartment project Orangeriet in Solberga, Stockholm, was converted into rental apartments in October, due to lower than expected interest at the start of sales.
“Against the backdrop of a continued weak development in the co-op apartment market, we have taken the decision to convert additional co-op apartment projects into rental apartments. Thanks to our flexible business model, we can convert projects relatively easily. We will naturally follow developments going forward, and we will take decisions on forms of tenure based on the special conditions of each future project,” says CEO Hans Wallenstam.
Apart from Orangeriet phase 1, the following projects, involving a total of about 290 apartments, were converted into rental apartments during the quarter:
- Orangeriet, phase 2, Stockholm, 80 apartments
- Umami Park, phase 1B, Stockholm, 75 apartments
- Stallbacka Allé, Mölndal, 133 apartments
During the quarter, a number of properties were taken into possession and vacated. On October 10, Mölndal Rödklövern 1 was taken into possession, which consists of land where Wallenstam is now constructing about 90 temporary apartments, in accordance with the previously communicated letter of intent between Mölndal Municipality and Wallenstam.
On November 30, four co-op premises were taken into possession in Brf Larmtrumman 2, located at Södra Larmgatan 18/Vallgatan 23 in Gothenburg. The floor space amounts to just over 400 sq m.
The property Göteborg Bö 72:20 with floor space of about 900 sq m, located at Danska vägen 20 in Gothenburg, was taken into possession on December 1.
The previously communicated structural transaction with Castellum includes the acquisition of two properties, which were taken into possession on December 15: Göteborg Kallebäck 3:4, adjacent to our urban development project Kallebäcks Terrasser, and Härryda Hönekulla 1:571 at Mölnlycke Centrum. The total lettable area amounts to about 35,100 sq m. In the same transaction, Göteborg Krokslätt 20:6 and Göteborg Krokslätt 154:8 located on Mölndalsvägen, were vacated with a total lettable area of just over 9,300 sq m, and related commercial building rights.
The property Göteborg Kålltorp 37:1 with the address Björcksgatan 29/Munkebäcksgatan 6 was vacated on November 8. The floor space amounts to almost 800 sq m.
For further information:
Susann Linde, CFO and Head of Investor Relations Wallenstam AB (publ) tel. 46 31 20 00 00 or 46 705 17 11 34
Wallenstam is a property company that manages, builds and develops properties for sustainable living and enterprise in Stockholm, Gothenburg and Uppsala. The property holding is valued at around SEK 40 billion and the customer base consists of around 7,700 households and 1,000 enterprises. The total lettable area is around 1 million sq m. Wallenstam is self-sufficient in renewable energy through the company Svensk NaturEnergi. The company’s B shares have been listed on Nasdaq Stockholm since 1984.