Peab continues investing in project development: develops mountainside property company with SkiStar
Skiab Invest AB, half-owned by Peab and SkiStar, has today signed contracts for the acquisition of three lodges with a property value of SEK 737 million and development rights worth SEK 305 million from SkiStar.
Peab and SkiStar currently own and manage three lodges in Swedish and Norwegian mountainside locations through various jointly owned companies. These will now come together in the half-owned company Skiab Invest AB. In addition, the company will acquire three new lodges in Hemsedal in Norway, Lindvallen in Sälen and Hundfjället in Sälen (under construction) and development rights for around 60,000 GFA in Sälen, Vemdalen, Åre and Duved.
In conjuncture with the transaction SkiStar is signing new leases on both the newly acquired properties and the previously jointly owned properties. These are triple net leases that run between 12-25 years with an average longevity of 17 years. Revenue from the leases amounts to SEK 93 million.
“In recent years Peab has invested considerable resources in project development and we plan to continue with this strategy. In some cases we run project development business in partnership because we see that this can add to our expertise. SkiStar is a leading destination developer in Scandinavian mountain areas and owning Skiab Invest AB with SkiStar creates a good platform to succeed in new projects on Swedish and Norwegian mountainsides,” says Göran Linder, BA Manager Project Development in Peab.
The contracts are pending approval by a General Meeting in SkiStar of the divestiture and lease signing as well as maintaining existing financing or arranging new financing by September 15th. Given that the above conditions are met, all the transactions are expected to be implemented in the third quarter 2021.
About Skiab Invest AB
Skiab Invest AB will develop, own and manage commercial property and housing in Scandinavian mountain areas. The property portfolio will initially consist of six modern top notch lodges on attractive mountainsides in Sweden and Norway and development rights for around 60,000 GFA. Skiab has a clear growth plan and intends to make use of its development rights as well as acquire other property.
For further information, please contact:
Göran Linder, BA Manager Project Development, +46 733 33 94 22
Juha Hartomaa, Head of Investor Relations Peab, +46 725 33 31 45
Peab is the Nordic Community Builder with 16,000 employees and net sales of SEK 57 billion. With a local presence and focus on our own resources we develop, do the groundwork and build everyday life where it’s lived. Company headquarters are in Förslöv on Bjäre Peninsula in southern Sweden. The Peab share is listed on Nasdaq Stockholm.
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