Serneke and Balder to develop additional properties in Karlastaden
Serneke and Fastighets AB Balder are forming a joint venture development company to continue their collaboration in the Karlastaden district. The joint venture company will develop three buildings in the district, comprising a total 45,000 square meters GFA and approximately 450 apartments.
Through the joint company, Serneke and Balder will develop three more of the total of eight buildings in the emerging Karlastaden district in the Lindholmen area of Gothenburg. The three buildings encompass about 45,000 square meters and, according to initial plans, will have between seven and 27 floors, containing mostly housing but also commercial spaces, retail, and offices. The buildings will include an estimated 450 tenant-owned apartments.
The underlying property value in the joint venture, of which Balder will acquire 50 percent, amounts to SEK 558 million. Balder will pay the purchase consideration through installments during the implementation of the project.
The transaction includes future contracts for Serneke, which, depending on the future development of the properties, have an order value of approximately SEK 1.5 billion. Construction of the buildings in question is scheduled to commence in 2022 with estimated start of occupancy in 2024.
“This is a major event in Karlastaden’s history, but also for me personally, as numerous colleagues and I have for a long time been involved in advancing the plans for the district from the concept stage to implementation. That we are now continuing our collaboration with Balder, providing additional homes and a new, living part of the city, feels extremely satisfying,” says Ola Serneke, CEO of Serneke Invest.
“It feels highly gratifying to take the next step towards realizing one of the Nordic region’s most exciting property development projects alongside Serneke. We are continuing our beneficial collaboration with Serneke and look forward to the continued development of Karlastaden with confidence,” says Erik Selin, CEO of Balder.
Since December 2020, Balder has held a 50-percent share in the joint company Karlatornet AB, which owns and is developing Karlatornet, the Nordic region’s tallest building.
For additional information, please contact:
Michael Berglin, CEO Serneke Group AB
Tel: +46 31 712 97 39
michael.berglin@serneke.se
Anders Düring, CFO Serneke Group AB
Tel: +46 70 888 77 33
anders.during@serneke.se
Johan Live, Communications Manager, Serneke Group AB
Tel: +46 76 868 11 37
johan.live@serneke.se
This information is such that Serneke is required to disclose under the EU Market Abuse Regulation. The information was submitted under the auspices of the contact person stated above, for publication on July 14, 2021 at 15.00 p.m. CET.
Serneke is a growing corporate group active in contracting and project development. The Group was founded in 2002 and today has income of nearly SEK 6.9 billion and approximately 1,200 employees, organized into three business areas: Serneke Sweden, Serneke Invest and Serneke International. Through novel thinking, the Company drives development and creates more effective and more innovative solutions for responsible construction. The Company builds and develops housing, commercial buildings, industrial facilities, public buildings, roads and civil engineering projects, and other infrastructure. The company’s customers consist of both public and commercial clients. The Company’s Swedish units operate nationwide and are organized into five regions: South, West, East, Central and North, and are headquartered in Gothenburg. The Company’s Series B shares (SRNKE) have been listed on the Nasdaq Stockholm exchange since November 2016.
Further information about Serneke Group AB is available at www.serneke.se
