The acquisition strengthens Fabege’s position as an urban developer in the Greater Stockholm area. Thanks to SHH’s expertise in residential and local authority properties, we can be involved in the value creation for longer and run several different types of projects under our own management, which is a natural next step in our urban development strategy.
We want to make a difference in the neighbourhoods where we operate, for example by helping children and young people get a good education, enjoy meaningful leisure time and, in the longer term, find a route into the labour market.
We’re delighted at the confidence Alfa Laval has shown in us by choosing Flemingsberg as the site of their future development and operations. One more piece of the puzzle is now in place for our shared vision with Huddinge Municipality.
We are very pleased to add these three people and their experience to the letting team. We will now be in an even better position to be an active partner for both existing and potential customers when they want to change and develop their offices, and to market many of the exciting projects in our portfolio.
I am pleased with the quarter in several respects, particularly the increased activity in the rental market, which is reflected in our strong net lettings of SEK 56m and in the renegotiations which increased 12 percent. I am optimistic about Q3 and I believe we’ll have a quarter with continued positive net lettings, although Q3 is traditionally a weaker quarter.
Fabege has a strong balance sheet, stable customer base and a modern property portfolio in prime locations with plenty of opportunities for development projects that we’re ready to harness.
The financial world has a great opportunity to steer developments in a more climate-friendly direction, and as borrowers we have significant potential to contribute to this. Since Fabege achieved 100 per cent green financing last year, we are now taking the next step and extending our sustainability responsibility in financing via a taxonomy-linked loan. We’re delighted to be able to do this together with Handelsbanken, with its responsible approach to sustainability work
We are very pleased with the great interest in Franzéngatan 6 in Västra Kungsholmen and the fact that we have now signed two key contracts in the Glädjen district. Discussions continue about letting a floor higher up in the building.
We want to give both children and adults of all ages an experience with focus on playing and learning as well as an opportunity to get acquainted with the sustainability goals in a concrete and fun way. We are very pleased that a private operator shows the way both when it comes to developing a district with a high level of ambition and when it comes to setting a sustainable agenda.
We are thus well aware that we need to work hard and remain focused regarding those areas in which we have the greatest opportunities to contribute towards sustainable development, and achieving the global goals forms a major part of our daily work. But everyone has to contribute to achieving these goals, and with the new park we hope to raise awareness and knowledge about the important work that needs to be done.
The Agenda 2030 for sustainable development, and its 17 goals, are to be implemented primarily by countries and so far the focus has been on actions taken by governments, but what can individuals do to help? This was the question when we developed The Good Life Goals. Visitors can get inspiration in the park and find out in a creative way what they can do.
Fabege has a strong balance sheet, a stable customer base, a good property portfolio in great locations and many development opportunities. During the quarter, we utilised our strength to repurchase almost 3 million shares. All with the ambition of creating additional shareholder value.
We are very pleased to have Johan Zachrisson joining our team. His extensive experience with development projects, rentals and transactions will contribute to our future development and we look forward to welcoming him.
Fabege is a company that has always impressed with its thoughtful strategy, high business tempo and stable delivery. Furthermore, a nice crew with sound values. Both the mission and becoming a part of Fabege feels very good, and I look forward to getting started.
Along with our current development of Arenastaden, Haga Norra and Solna Business Park, the land acquisition is a natural addition that contributes to new value-creating opportunities in Solna in a long-term perspective. The geographical location and Solna’s many advantages mean that we are keen to increase our portfolio in the area.
We have just completed Scandinavia’s first zero-energy hotel – and now we are raising the bar further with one of Sweden’s most interesting new construction projects. We are aware that we and the industry as a whole have a huge task ahead of us, but at the same time we regard the transition towards a sustainable and profitable business sector with a long-term perspective as being a major opportunity.
We have defined high sustainability targets for Fabege by stating that by 2030 we will have reduced our carbon footprint by 50%. Rehouse gives us the opportunity to test achieving a halved climate impact in a new construction project already now, so we see no reason to wait with this approach. We want to challenge not only ourselves but the entire industry, and we hope that with Parkhuset we can also inspire others to think outside the box.
The land allocation agreement with Huddinge Municipality is the next important step in Fabege’s development of Flemingsbergsdalen. The agreement reinforces Fabege’s presence and control over future developments. We’re pleased to continue our planned development of Flemingsberg in partnership with Huddinge Municipality.
We see good opportunities both to optimise the value of the portfolio and to take even greater responsibility for the development in our areas through a deeper engagement in the development of apartments, without taking the focus away from our commercial premises.
We thank Anders Borggren for developing our working methods and promoting digitalisation issues on a large scale. With Fred, we have found the right person to take over from Anders and to take us to new levels.
Our projects are progressing and we completed a couple of acquisitions. I am confident that our focus on Stockholm, and primarily office properties, is a recipe for success for the future as well. Fabege enjoys a strong financial position, which means we are able to cope well even in difficult times, and hopefully harness any opportunities that may arise. Several of our key performance indicators are stronger at the start of 2021 than they were in 2020.
There’s a lot happening in the industry right now in terms of sustainable construction and the carbon footprint of the building process. Sustainability should be the hallmark of everything we do, and we are constantly working to advance our positions and lead the way. We are continuously striving to satisfy customer requirements for comfort, quality of life and low running costs, without increasing emissions.
The project demonstrates that even large buildings in densely populated areas can achieve ‘Plushus’ status, which is why we’re delighted that there are pioneers willing to raise the bar when it comes to energy-efficient construction.
Klaus’ business acumen and ability to build relationships has been responsible for an important part of our success in the construction and development of our districts, in particular Arenastaden. Our business development and leasing team is well equipped for the future, and I thank Klaus for his great commitment and drive over the years and the value he has helped to create. Stefan Dahlbo, President and CEO of Fabege.
It is not often that this type of object and opportunity comes out on the market, which has also been reflected in the strong interest for Kungsgatan 9l. We are really happy that it will be together with Convendum that we will continue to refine both Kungsgatan and this jewel.
We’re getting an increasing number of enquiries from investors on the equity market about our strategy and our objectives in the area of sustainability. CICERO’s opinion is a testament to the fact that we’re on the right track and strengthens our resolve to contribute towards achieving the goals set out in the Paris Agreement
The results reveal that pursuing sustainable operations is clearly profitable. We want to make a positive contribution to the long-term sustainable development of the Stockholm region, and Fabege has ambitious targets both for properties and customer offerings. We have come a long way, but we also understand that the construction and property sector’s essential transition to a more sustainable approach will remain a key feature of our work for some time to come.
We are happy and proud to have the privilege of participating as an active party in the great transformation towards an increasingly sustainable and responsible financial market. To reach the climate goals in the Paris Agreement, the entire financial world needs to take a major responsibility for the climate.
Real estate is the business that has the biggest environmental footprint and for this reason it is important that we as a sector are the forefront in terms of sustainability work. Our entire property holdings are certified as sustainable and green financing is another important part of our sustainability efforts. The property sector has shown that it takes this issue seriously but now Fabege is setting the bar for green financing and challenges the other players in the industry to follow our lead.
The property is not located in one of our priority areas so it feels sensible to sell it.
It has been a fantastic journey to be able to create Hotel Giò together with Kom Hotel. We have had a common vision about trying to preserve the Hagahuset building’s feel and charm by considering its great qualities and meticulously designed details, which I really think we have succeeded with.
High ambitions, commitment and a lot of hard work all through the organisation lie behind the award of this recognition. In our role, we can influence developments and it is a responsibility that we shoulder with pleasure. In these areas, there should only be winners.
I am happy that Fabege stands strong in the crisis we are all going through. The performance shows a strong company with stable operations.
“The ambitious plans in Flemingsberg are now starting to take shape. The planning programme has been out for consultation and our first major lease is now in place. Naturally we are delighted to share the news that Operan and Dramaten are choosing to locate some of their activities here in particular."
I am extremely proud of the position we have obtained and the commitment our employees are making to ensure that we continually take some steps in the right direction. We know that our work creates value and favourable conditions both for our customers and other stakeholders
We are pleased that we had the opportunity to acquire the land from Skanska. Through the acquisition, we have the opportunity to get started with the development of Flemingsberg faster, which is very pleasing. We are also looking forward to continues good cooperation with the municipality of Huddinge and with our neighbours in the area. Christian Hermelin, CEO Fabege
We have ambitious aims for our sustainability work, much of which is an integral part of our operating activities. It’s very pleasing to now be establishing a new framework that contributes to expanding our green financing platform, enabling us and finance providers to contribute to more sustainable development.
The sale is evidence that the transaction market remains strong in Stockholm. “Demand for modern offices in prime locations is healthy, and we are not seeing any slowdown in the number of enquiries from institutional investors
This is the first time we’re doing this survey in an entire area, but that’s also when we’ll have a real opportunity to exert an influence and make a real difference. We’re planning to work with SL (the local public transport operator in Stockholm) and other actors to ensure that more car commuters gain access to better public transport opportunities. One hypothesis we wish to explore, for example, is what a new bus service from Ropsten to Arenastaden would entail in terms of reduced emissions
The investment has meant that we no longer need to purchase any cooling, and that the amount of district heating purchased has been reduced by 75 percent thanks to the energy stored in the bedrock
It is of course extremely exciting that we are up and running with this important project, together with Huddinge Municipality. Attractive workplaces located close to where people live are needed, also on the southern side of Stockholm, and utilizing vacant capacity in existing infrastructure is very wise. We hope that this new city district will create a better balance and more competitiveness in the entire Stockholm region.
As a proactive urban developer, it is quite natural for Fabege to also get involved in creating new homes. The project in Solna and partnership with the TB Group is another example of such an initiative, with Fabege actively contributing to more homes being built.
It is fantastic that a creative, young and expansive company has chosen to be based in Hammarby Sjöstad. Hyper Island runs a business that involves the general public, which attracts people to it and thereby contributes to achieving a dynamic urban district.
Together with Huddinge Municipality and other stakeholders, we want to transform the Flemingsberg area from being a strong regional centre into a dynamic international star.
Due to our focus on offices, it is a natural step to divest this school property now that it has been completed and is about to open. The property is fully leased and provides no further development potential for Fabege. We are convinced that Pareto previously acquired and today manages this type of community properties will be a good landlord.
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.