Acquires Bromma Blocks from CBRE – surpasses 1 million sqm of retail space
Press release
Stockholm June 19, 2024
Svenska Handelsfastigheter, a leading retail property company in Sweden, has entered into an agreement with CBREGI Swedish Retail Ventures AB to acquire Bromma Blocks for SEK 1.173 billion. The acquisition comprises five building properties with a total leasable area of just under 57,500 sqm and well-located building rights of approximately 50,000 sqm GTA. Coop, City Gross, Elgiganten, XXL, Jula and Rusta are among the larger tenants. The acquisition means that Svenska Handelsfastigheter's total retail area will exceed 1 million square meters.
Bromma Blocks is one of the Stockholm area's leading retail venues with almost 70 tenants covering a wide range of retail offers. Food and other daily consumer goods account for about 50 percent of the shopping venue's total sales, which in 2023 amounted to approximately SEK 2.1 billion. Total rental income amounts to SEK 210.3 million with a net operating income of SEK 131.6 million.
Further expansion is possible as there is potential to create building rights for an additional approximately 50,000 sqm. The occupancy rate is approximately 91 percent, which opens up for more rental opportunities.
Bromma Blocks is centrally located with a growing population base as several thousand new homes are planned in the immediate area in connection with the Bromma and Sundbyberg neighborhoods being linked closer together. More than 2,000 parking spaces, several bus lines and the tramway, which is under continued expansion, guarantee good communications.
"We are really looking forward to taking over Bromma Blocks, which has an excellent location in an expanding neighborhood. We strongly believe in Bromma Blocks as a well-established shopping venue for almost 20 years, in combination with Svenska Handelsfastigheter as a long-term player with strong owners. We see good opportunities to further develop the area based on our extensive experience in retail venues and discount stores," says Thomas Holm, CEO of Svenska Handelsfastigheter.
"We are also very pleased to be able to develop this expansive area and the building rights together with leading retailers and the City of Stockholm. This investment is an important step in our long-term strategy to contribute to the city's sustainable growth and create attractive, vibrant environments for both residents and visitors," adds Thomas Holm.
The transaction is based on an underlying net property value of SEK 1,170 million and is financed with external loans from Nordea and equity. The book value of the property amounted to SEK 1,725 million as of December 31, 2023. The deal includes the acquisition of seven companies and indirectly the leaseholds to the properties Trafikflyget 1, Trafikflyget 3, Trafikflyget 5, Trafikflyget 7 and Trafikflyget 9. Closing is expected to take place on June 25, 2024.
As of March 31, 2024, Svenska Handelsfastigheter's portfolio contained 882,000 sqm of retail space in 145 municipalities across Sweden. In May, a portfolio of retail properties of approximately 85,200 sq.m. was acquired. Through the acquisition of Bromma Blocks, Svenska Handelsfastigheter's total leasable area exceeds 1 million sq.m.
The buyer's legal advisor has been Wigge & Partners while CBRE IM has had CBRE and Gernandt & Danielsson as advisors.
For further information, please contact:
Thomas Holm, CEO, Svenska Handelsfastigheter
thomas.holm@handelsfastigheter.se
+46-70 – 943 68 00
Joran Rydberg, Head of Transaction, Svenska Handelsfastigheter
joran.rydberg@handelsfastigheter.se
+46-70 - 797 14 75
Knud Lauridsen, Head of Property Management, Svenska Handelsfastigheter
knud.lauridsen@handelsfastigheter.se
+46-73 – 639 33 76
This information is information that Svenska Handelsfastigheter is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 00:10 CEST on June 19, 2024.
About Svenska Handelsfastigheter
Svenska Handelsfastigheter is a property owner that, in collaboration with the retail sector, develops attractive retail venues. The company's owners have a long-term perspective, and its financing is long-term, which paves the way for managing the business with a long-term perspective. The company's largest shareholders include Kapan Pensions, the Fourth Swedish National Pension Fund (AP4) and Lansforsakringar Liv. Read more on www.handelsfastigheter.se
