In summarising the third quarter, we can state that demand in our markets remained high, with favourable activity levels and confidence among our customers. This is reflected in the period’s strong net lettings totalling SEK 75 million and an income from property management that increased a full 25 percent.
With our current expansion of Medeon, in the form of a completely new building, it is naturally gratifying to see a company that was founded here becoming one of the first to move into the new building.
We appreciate that Veho Bil is a long-term player and are naturally pleased to be able to assist the company with creating a new state-of-the-art service centre.
When constructing new buildings, we prioritise creating a vibrant urban environment and a first-class work environment for those working in the building.
We have grown substantially in Denmark over the last few years and our rising occupancy rate confirms the wisdom of this strategic decision.
We made a strong start to the year and the trend has continued. We have noted a healthy increase in rental income, a rising operating surplus and an increase in income from property management during the second quarter of a full 32 percent.
“A large share of Wihlborgs’ property portfolio is located in Herlev and Ballerup. This is an excellent opportunity for us to supplement our portfolio with an additional two properties in the area.
This means that we no longer have any vacancies in Hyllie, and we can continue plans for our next potential project, Pulpeten 5, which can accommodate around 20,000 m² of offices.
Our vision is for Prisma to become a tech centre, where Hetch comprises a hub that also adds value for other companies in the building. Moreover, as a major property owner in Helsingborg, we are well-placed to help Hetch companies continue their development as their needs change.
Region Skåne is one of our most important tenants, and we are of course pleased to be able to meet their need for a modern, functional transportation facility.
Our strong trend continues and income from property management increased a full 25 percent. Demand remains robust. In the first quarter, we signed new leases amounting to SEK 96 million, which sets a new high for a single quarter.
The acquisition is an important part of our continued growth in Helsingborg. We see a healthy demand and our existing office properties in Helsingborg are essentially fully let. With this addition, we can help both current and new customers develop their operations.
Today, Medeon is fully let, while several of our current tenants are growing and have signalled that they need larger premises. There’s also demand for premises from companies that aren’t currently at Medeon. That’s why this is the right time to expand the research park with new, attractive spaces. In addition to the new build, we’ll also develop the existing buildings, including services and offerings.
We’re quite pleased to have the opportunity to continue our relationship with MilDef and help them with new, state-of-the-art premises close to where they’re already located. Helsingborg has an exciting business climate with companies encompassing a wide variety of sectors, and MilDef is an excellent example of how to take advantage of the entrepreneurial spirit and the cutting-edge skills in the city and in the region.
The City of Malmö is one of our most important tenants in Malmö and we maintain a continuous dialogue with them about changes in their property needs. In this case, we’ve been able to meet their request for large, collected areas in Malmö’s most central location, with proximity to both City Hall and the HVO’s premises on Drottninggatan.
We are immensely pleased to have the opportunity to renovate this beautiful old building for a new tenant, the same way we did with Magasinet over five years ago.
We are pleased to welcome voestalpine Böhler weldCare AB as a tenant and to help them create a modern production facility with in-built flexibility for future needs. This is an investment that will positively impact the continued development and attraction of Fosie.
We close the books on another record year. Each year since we first listed on the stock exchange in 2005 has been a record year — irrespective of whether one looks at rental income, operating surplus or income from property management.
This acquisition is a natural part of our continued investment in growth and increased density in Lund. Over the course of a few months, we’ve been able to complement our Ideon portfolio with 70,000 m² of attractive office space that’s easily accessible via the new tram line.
Now we’re entering another intensive stage that will mean substantial improvements for travellers, visitors and those who live and work in the city. This is the beginning of something new, which is why — after consulting with the city of Helsingborg — we have chosen to give the place a new name: Helsingborg C.
We have noted continued healthy demand for office space in Malmö, particularly in central areas and locations close to transport links. Our vacancies are at historically low levels for office space in Malmö and we have a confident view of 2019.
Helsingborg has certainly established itself as a hub for logistics and e-commerce, and we have noted continuing strong demand for warehouse and logistics premises in this area. It is gratifying that we were able to help Blomsterboda at short notice to find premises with attractive transport links and the timing is, of course, completely right when we can offer a solution that ensures the property is not empty for a single day.
Volvo Cars’ considerable expansion of its operations at Ideon is a positive example of Ideon and Lund offering unique development opportunities in several areas of technology. We are also pleased to enable Volvo’s growth in our portfolio.
We can now deepen our commitment in Brunnshög, which began with the construction of the Max IV laboratory. Max IV and ESS will attract researchers from across the globe and the area must now be developed to provide services to these visitors. Both Space and the adjacent block have an important role to play in this.
Malmö is our largest market and the regional director role is critical for Wihlborgs. With his solid track record in property management and leadership, Magnus Procheus will be able to drive our continued development in Malmö and in the company overall. This combination of experience and commitment to development fits well with Wihlborgs.
Our earnings continue to improve and we can now sum up another excellent quarter. Income growth was driven by a combination of acquisitions, new production, rent increases and reduced vacancies.
I am proud that, along with Prisma, we are part of contributing to the development of Helsingborg. We are creating first-rate offices alongside the glittering Öresund strait, just a stone’s throw from central Helsingborg. The Oceanhamnen district offers fantastic possibilities and could inject some real energy into the Helsingborg business community.”
We are delighted that ABB has chosen to continue as a tenant of Wihlborgs and to invest for the long term and that they will continue to leverage the advantages provided by Boplatsen’s strategic transportation links.
Over recent years, Wihlborgs has geared up its digital ambitions. Dag will play a key role in efforts to set a clear digital agenda and to drive the continued development of services and solutions that benefit our customers and our business, and which facilitate our daily work.”
The acquisition will allow us to further strengthen our position as the largest commercial property owner in Lund. Wihlborgs has an extensive, long-term commitment to Lund, and not least to Ideon. We have identified considerable potential in northeast Lund, and in the city centre, and this acquisition is a key element of Wihlborgs’ continued development in Lund.
“As Wihlborgs’ new CEO, I am delighted to summarise a very strong quarter for the company, one in which our excellent growth has continued.
RISE is already one of our tenants and we look forward to continuing our long-standing collaboration as RISE is now expanding and needs more space. Having such an important player in research and development among Ideon’s growth and innovation companies strengthens both the area and the region as a whole.
It is positive for development across the entire region that Malmö University will now offer a new training programme that also makes a very tangible contribution to societal development.
Malmö is growing in several directions, and co-locating Exakta’s operations into one efficient unit at a geographically interesting location also gives the area as a whole additional strength to grow.
We ourselves are working actively on sustainability, and naturally it is extremely gratifying to welcome a company that develops products that can promote a better environment.
This region has so much to give. We’re going to be part of making the fantastic even better.
It is only natural that Corem strengthens its position in the area and that we focus our resources in markets where we are stronger and have an opportunity to continue to develop together with our tenants.
The southern parts of Helsingborg are developing very positively, with growing interest in retail from both customers and stores. We are pleased that DollarStore has chosen Wihlborgs now that they are establishing themselves in Helsingborg.
Seeing Gängtappen fill up with even more growing companies is gratifying. Together with Media Evolution City’s expansion at this location, this means the building will be a lively environment that will enable even more encounters between those working in the building and people from other parts of town who want to utilise the historic building’s new platform. Moreover, we’re moving Wihlborgs itself into two floors this summer.”
Wihlborgs’ continued record-strong performance is extremely gratifying. Continued increases in rental income, strong income from property management, reduced vacancies and favourable net lettings all clearly indicate that Wihlborgs is well-placed for the future. Growth is very positive in both the Swedish and the Danish operations
We are delighted to welcome Swedol as one of Wihlborgs’ tenants. Fosie is an excellent investment for a store oriented towards trade professionals.
“The fact that we are included on the list of Sweden’s best workplaces is a fine acknowledgement of the commitment and friendship we have at Wihlborgs. These factors also contribute to the success of our business.
Media Evolution has meant a great deal for Dockan’s development. It has created a unique place for innovation and meetings between start-up companies and established businesses. We are therefore very pleased to develop our partnership.
Wihlborgs has recorded healthy growth throughout 2017, and we finished with a strong fourth quarter. As planned, the acquisitions we made in Denmark in the third quarter have delivered well and, naturally, contributed to the healthy earnings but we also generated good growth in our existing operations.
Lund is an attractive market with exciting development plans. As Regional Director, Maria will have an important role as regards ensuring that Wihlborgs utilises future business opportunities in the best way. Her sound leadership experience and strong focus on business will be a valuable asset for us.
We are pleased with our acquisition that occupies a strategic location in central Helsingborg. The property is a good fit for our portfolio and, at the same time, strengthens Wihlborgs’ position as the leading property owner in Helsingborg.
Gängtappen is a fantastic building with timeless architecture that feels as relevant today as when the building was constructed. The tenants who have already moved into Gängtappen have an amazing work environment, so I am convinced that the move will also provide us with new energy, efficiency and creativity.
The acquisition complements our portfolio and strengthens Wihlborgs’ position as the dominant property owner in Fosie.
To sum up, we have completed an eventful and successful third quarter, in which we once again posted record figures for both income and earnings. At SEK 333 million, for the first time, income from property management for a single quarter exceeded SEK 300 million.
Prisma will be a unique building that reminds one of diamonds, icebergs and jewels. This is where we are creating flexible office premises for modern companies that want to work out of a unique property in Helsingborg’s new city district.