Detailed development plan for Södra Änggården becomes legally binding – urban development of the area can now begin
The Land and Environment Court of Appeal rejected the appeal against the detailed development plan for the transformation of Högsbo industrial area to Södra Änggården. Consequently, the detailed development plan gained legal force. Construction of 2,000 homes as well as schools and parks can now begin. Total revenue for Platzer is estimated at SEK 1.8 billion.
Yesterday, 6 April 2022, the Land and Environment Court of Appeal announced that it had rejected the appeal against the detailed development plan for Södra Änggården. The detailed development plan for the transformation of Högsbo industrial area to Södra Änggården has thus become legally binding. The decision by the Land and Environment Court of Appeal gives the green light to construction of a mixed-use development comprising 2,000 homes, businesses, pre-schools, parks and a school.
“Finally! We are extremely pleased that the Land and Environment Court of Appeal decided in favour of us and the City. We have always been convinced that it is important that the area is developed as a mixed-use development and that Södra Änggården will become a fantastic district. The Court’s decision confirms that the businesses currently operating in the area will be able to co-exist with new ones being created. We are now commencing development of the area together with all the other participants in the Södra Änggården collaboration organisation,” said Lisa Häggdahl, Business Developer and head of the detailed development plan project at Platzer.
Work on the plan has been managed by the City of Gothenburg’s City Planning Office in close collaboration with Platzer since 2016. The City Council adopted the detailed development plan in April 2020. This decision was subsequently appealed to the Land and Environment Court, which rejected the appeal. This decision was then appealed to the higher instance court. Now the Land and Environment Court of Appeal has rejected the appeal and said that this decision cannot be appealed. This means that the detailed development plan for Södra Änggården has now become legally binding.
“This is a big day for us, for the City and for all our collaboration partners in Södra Änggården. The decision by the Land and Environment Court of Appeal shows that the detailed development plan drawn up by the City Planning Office is a solid, well-prepared plan. I am proud that we are continuing to create and deliver value for both the company and for Gothenburg,” said P-G Persson, CEO of Platzer.
Platzer’s role in the area
Platzer is currently the largest property owner in the area and will continue to participate in the project during construction and coordinate development of Södra Änggården. This will be implemented in partnership with the players that the company signed agreements with in 2017 and 2018 for the majority of the newly created residential building rights. The residential players are Bonava, Peab Bostad, Månsson Fastigheter, Hökerum Bygg and Skanska Nya Hem. The area will continue to include commercial property also in future, which Platzer will be able to develop to create a multi-storey car park, school and preschool.
Platzer and the residential property developers have signed a cooperation agreement that ensures not only long-term commitment in the area, but also that the area will be developed in accordance with the vision and handbook drawn up for the area.
Value of deal to Platzer
Total revenue is estimated at SEK 1.8 billion, SEK 1.6 billion of which comprises agreements signed so far, which is in line with previous communications. The properties are being sold as ready for construction, which means that Platzer is responsible for costs arising from demolition, decontamination and development of roads and parks.
Platzer has not so far recognised the disposals through profit or loss, and instead measurement of building rights will take place now that the detailed development plan has become legally binding. The disposals will be recognised as changes in the value of properties in the second quarter of 2022, and are expected to boost equity by SEK 6-7 per share.
For more information, please contact:
Lisa Häggdahl, Business Developer, Platzer, Tel.: +46 (0)31 62 53 29
P-G Persson, CEO, Platzer, Tel.: +46 (0)734 11 12 22
Platzer Fastigheter Holding AB (publ) owns and develops commercial property in the Gothenburg area. The property portfolio was worth SEK 26 billion as at 31 December 2021. The Platzer share is listed on Nasdaq Stockholm, Large Cap.
Södra Änggården
The area in question is located in Högsbo industrial area, close to Slottsskogen and adjacent to Änggårdsbergen, and it offers huge potential for development. A total of 2,000 apartments are planned for the area. Read more at www.södraänggården.se
