Fabege renegotiates and extends lease with Telia in Arenastaden

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Fabege and Telia have agreed on certain changes in their lease agreement, which mean that Telia will reduce its leased area. The rent level is adjusted and the agreement extended for a further 9 months until 31 December 2031. The new agreement enters into force on 1 October 2024.

The initial effect on the net letting amounts to SEK -23 million.  Telia will pay an exit compensation that will be periodized over the term of the agreement.

With the new agreement, Telia will lease just under 25,000 square meters and the building will be opened up to more tenants. Fabege’s investment for future tenant improvements is estimated to approximately SEK 70m. The premises, which are in best location in Arenastaden, can now be rented out at market rent. The expected effect on the net letting (including initial negative effect) after the returned space is rented out is estimated to exceed SEK 20m.

-          The settlement with Telia is commercially motivated and will eventually have a positive impact on net letting as well as the property's NOI and property value. We appreciate our relationship with Telia as an important tenant that contributes to Arenastaden's attractiveness. Together we continue to develop Arenastaden,, says Stefan Dahlbo, CEO Fabege.

Fabege AB (publ)

For further information, please contact:
Johan Zachrisson, Head of business development, tel +46 76 720 34 19, johan.zachrisson@fabege.se 
Stefan Dahlbo, President and CEO, tel. +46 (0)70-353 18 88,
stefan.dahlbo@fabege.se
 

With a focus on mainly commercial properties, Fabege develops attractive locations in the Stockholm area. We are a present partner that puts people front and centre. Our innovative, responsible and flexible ethos enables companies, locations and our city to develop and thrive. We take a long-term approach in our perspective and ownership. We know that when we create sustainably, we also create value. The Fabege share is listed on Nasdaq Stockholm, in the Large Cap segment. For further information, please visit us at fabege.com.

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Quotes

The settlement with Telia is commercially motivated and will eventually have a positive impact on net letting as well as the property's NOI and property value. We appreciate our relationship with Telia as an important tenant that contributes to Arenastaden's attractiveness. Together we continue to develop Arenastaden, says Stefan Dahlbo, CEO Fabege.
Stefan Dahlbo, CEO Fabege.