Atrium Ljungberg signs an agreement for a major acquisition in Slakthusområdet
Atrium Ljungberg signed an agreement to acquire the Palmfelt Center Kylhuset 28 leasehold in Slakthusområdet in Stockholm. This leasehold has a letting area of more than 30,500 m2 and will be acquired at an underlying property value that will be based on an updated market valuation at the end of the year. This has been set preliminarily at SEK 1,560 million.
Palmfelt Center was built at the end of the 1980s for Bankgirot. The building is home to approximately 26,000 m2 of offices and 5,000 m2 of data centres and warehouses. Current tenants include Försäkringskassan, Bostadsförmedlingen and Stockholms Stads Parkering. The leasehold has a letting rate of 87 per cent and a rental value of approximately SEK 100 million. Palmfelt Center is located in the northern section of Slakthusområdet, directly connected to the new entrance to the underground, which is currently being built through this area.
In 2018 Atrium Ljungberg signed a letter of intent with the City of Stockholm to acquire existing properties and to sign agreements for land allocations in Slakthusområdet. The acquisition of Palmfelt Center is part of the agreement that was signed in 2018.
The acquisition will take place through a share deal and is based on an underlying property value that will be established through an updated market valuation at the end of the year. This has been set preliminarily at SEK 1,560 million. The acquisition is conditional on a legally binding decision from the city council, which is expected in January 2022. The seller is St Eriks Markutveckling and possession is expected in the second quarter of 2022.
“Palmfelt Center has a strong net operating income and an attractive location next to our existing properties and projects in Slakthusområdet. It perfectly complements our investment in one of the best office locations in Stockholm,” says Annica Ånäs, CEO of Atrium Ljungberg.
Slakthusområdet is one of the most interesting development areas in Stockholm. With its industrial and historical character and identity, the area will undergo extensive urban development up to 2030. Atrium Ljungberg’s vision, which we share with the City of Stockholm, is for the area to be an attractive location with offices and residentials, supplemented with a wide variety of food, culture and experiences – a brand new meeting place and an engine for the entire Söderort. The historical architecture and industrial setting, reflecting decades of food production, will continue to coexist with the new development. The development project will be one of the largest undertaken in Sweden in modern times.
Nacka, 4 November 2021
Atrium Ljungberg AB (publ)
This information is information that Atrium Ljungberg AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 4 November 2021 at 08.00 CET.
For further information, please contact:
Johanna Jonsson, Transaction Manager, Atrium Ljungberg +46(0)70-812 42 13
Atrium Ljungberg is one of Sweden’s biggest listed property companies. We own, develop and manage properties in growth markets in Stockholm, Gothenburg, Malmö and Uppsala. Our focus is on developing attractive urban environments for offices and retail, supplemented with residentials, culture, service and education. The total letting area is approximately 1 million m² valued at SEK 49 billion. Our areas include more than 30,000 workers and students as well as 1,000 residents. Our project portfolio will enable us to invest the equivalent of approximately SEK 37 billion in the future. Atrium Ljungberg is listed as ATRLJ-B.ST on the NASDAQ Stockholm Large Cap list.
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