GE Real Estate Nordic invests SEK 200 m in housing and retail premises in Borås

STOCKHOLM, APRIL 3, 2006: GE Real Estate Nordic has acquired a portfolio of residential, retail and office properties in Borås, Sweden from the Kanico Group for circa SEK 200 m. The transaction represents GE Real Estate Nordic’s first major acquisition of residential property for a number of years. The portfolio comprises 28 properties amounting to slightly more than 23,000 sq m. Approximately 12,000 square meters (52 per cent) of this comprises 190 apartment buildings and the remaining 11,000 sq m (48 per cent) is retail and office premises. The residential properties are located centrally in Borås and the commercial properties are in an area called Knalleland, about 70 kilometers from Gothenburg. The residential properties are fully let, while the retail and office property has an occupancy rate of 95 per cent. Tenants include Clas Ohlson and Gina Tricot. Commenting on the acquisition, Lennart Sten, GE Real Estate Nordic’s Managing Director, said: “This is our first investment in Borås, but we already own properties in the area around Gothenburg, such as in Partille, Härryda and Kungälv and we strongly believe that Borås, as a strong regional city, with its focus on low-price retailing and its proximity to Gothenburg will offer good opportunities for growth.” “After a long period without the acquisition of residential property we are pleased to again be investing in this area of the market which will also diversify our property portfolio,” says Lennart Sten. “Through the acquisition, which combines residential and commercial assets, we have been able to acquire a portfolio with an attractive yield despite the price pressure in the housing segment in Sweden.”