Magnolia Bostad sells around 900 residential units in Karlstad to Trenum
Magnolia Bostad has signed an agreement to sell about 900 homes to Trenum AB. The estimated property value at completion amounts to SEK 1.7 billion. The sale is contingent on the zoning plan coming into force, which is expected to be obtained in June 2020, revenue recognition will take place when the zoning plan comes into force.
The sale concerns part of the Tullholmssågen 4 property in Karlstad and consists of 53,500 sq.m. GFA. The property is very attractively located on Tullholmsviken, only a short walk from the city centre and close to both Stadsträdgården (botanical gardens) and water. The area is changing from an industrial area to a new attractive, vibrant neighbourhood.
"Trenum focuses on growth areas with a positive increase in population, which corresponds very well in Karlstad. The residential units we are buying meet our requirements for area-effective, attractive housing with a high sustainability factor and we are really looking forward to our collaboration with Magnolia Bostad," says Marcus Hansson, CEO of Trenum.
Around 900 residential units are planned for the area with different forms of tenure. The industrial history of the area, including its connection to saw mills and wood, as well as traditional industrial buildings in brick and metal, has inspired the design of the housing and will contribute to preserving the area's historical character. The buildings will be certified in accordance with the Swedish Building Council’s Silver certificate. The project is planned to consist of three residential blocks with area-effective, high-standard apartments and an underground garage. The project was designed by Lindberg Stenberg Arkitekter.
A turnkey contract has been signed with Consto AB and building is expected to start in the autumn 2020. Magnolia Bostad will develop and run the project until the housing is ready for occupancy, which is expected to start from January 2023.
"This is our first deal with Trenum and it feels really exciting. We are very much looking forward to our collaboration. The project is Magnolia Bostad's second in Karlstad, a region we are very interested in further expanding in. We also look forward to continued work with Consto in another project," says Magnus Ericsson, Central Regional Director at Magnolia Bostad.
Trenum AB is a property company that focuses on housing. The company concentrates on Sweden's three largest metropolitan regions and growth places with a positive population trend. Balder and the Third Swedish National Pension Fund each own 50% of the company.
Wigge & Partners and Wistrand Advokabyrå have acted as legal advisers to Magnolia Bostad.
For more information, please contact:
Magnus Ericsson, Central Regional Director
+46 76 019 39 31, magnus.ericsson@magnoliabostad.se
Marita Björk, IR and Financial Media Manager
+46 72 720 00 06, marita.bjork@magnoliabostad.se
The information contained in this press release is information that Magnolia Bostad is required to publish pursuant to EU Market Abuse Regulation (EU) No 596/2014. The above mentioned contact persons were responsible for the submission of the information on 3 April 2020 at 12.30 CET.
Magnolia Bostad AB, CIN 556797-7078 develops new residential properties, including rental apartments and tenant-owned apartments, community service properties and hotels, in attractive locations in Sweden's growth areas and major cities. Our work is based on a holistic approach where the operations are conducted in a way that promotes long-term, sustainable urban development. Magnolia Bostad's shares (MAG) are listed on Nasdaq Stockholm. More information is available at www.magnoliabostad.se
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