Fabege sells Trängkåren 7, Marieberg, to Areim
The property is a Stockholm landmark, often referred to as the Newspaper Building or Dagens Nyheter Tower. The property transaction is being completed as a corporate sale with an underlying property value of SEK 3,545 million after deductions for deferred tax. Transfer of ownership will occur on 23 January 2020.
The transaction will result in an unrealised change in value of SEK 36 million, which will be recognised in the fourth quarter. The transaction will also result in the resolution of SEK 359 million in deferred tax. Overall, this represents a profit of SEK 395 million after tax. In addition, work is currently underway at the property on the preparation of a new local development plan. Fabege will be entitled to an additional consideration when the local development plan gains legal force. The additional consideration could amount to an estimated SEK 100 million, and it will be recognised when it falls due.
The total lettable area is just over 77,000 sqm, of which 56,500 sqm comprises office space and the remainder parking. The building is almost fully leased and is home to companies such as Bonnier News, including the publications Dagens Nyheter, Dagens Industri and Expressen’s editorial staff and offices. There are also numerous other office tenants, a public canteen, storage facilities, gym/swimming pool and parking. The property is certified in accordance with Breeam In-Use, Very Good.
The property has been owned by Fabege since 2007, when it was acquired from Niam. The Bonnier Group was the main tenant at that time. Since then, the building has been the subject of long-term, value creating development, and its value has more than doubled.
The property constitutes an outlier in Fabege’s portfolio, as it is located outside our prioritised submarkets. In the future development, there are synergies in the utilization of future building rights for the property owner who owns both Trängkärden 7 and the neighboring property (Swecohuset). Areim, which owns the neighbouring property, is therefore the obvious buyer.
- Trängkåren has added considerable value to Fabege during the period of ownership, but the potential forward is limited for us. In the short term, the transaction will boost our balance sheet and KPIs. In the longer term, it allows scope for future planned and value creating project development in our prioritised areas,” commented Stefan Dahlbo, Fabege’s CEO.
Fabege AB (publ)
More information is available from:
Stefan Dahlbo, President and CEO, ph +46-8-555 148 10, +46-70-353 18 88
Klaus Hansen Vikström, Vice President, Director of Business Development, ph. +46-70-239 34 81
Åsa Bergström,Vice Preident & CFO, ph. +46-8-555 148 29, +46-706-66 13 80
This information is information that Fabege AB 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, at 14.30 CET on november 29, 2019.
Fabege is the property company focusing on city district development and commercial properties. We develop attractive and sustainable districts with modern offices, housing and a broad range of services - together with strategic partners. Both our perspective and approach to ownership are long term and our passion is creating the right conditions for all those living, working and visiting our areas. We have a presence in a limited number of high-growth submarkets in the Stockholm region. Fabege’s shares are listed on Nasdaq Stockholm, in the Large Cap segment. For more information, www.fabege.com