Northern European real estate investor and developer Nrep has acquired two properties in Sweden from its Nordic peer Fabege for SEK 3.4 bn (鈧�288 mln).
The deal comprises the properties Orgeln 7 in Sundbyberg and Gl盲djen 12 in Stadshagen. The assets will be taken over by the buyer in early October.
Fabege said that the underlying property value was consistent with the most recent valuation. After deducting sales costs, the transaction results in a recognised gain of SEK -13 mln before tax and SEK 414 mln after reversal of deferred tax for Fabege.
Stefan Dahlbo, CEO of Fabege, commemted: 'The sale is a natural part of our business model. The properties are located outside our strategic urban development areas and the transaction also further strengthens our balance sheet.
'We are currently investing for the future in several ongoing projects, including Flemingsberg and Haga Norra.'
The two properties are completed, largely fully let and both are located outside Fabege鈥檚 priority districts. The sale is part of Fabege鈥檚 continued concentration on selected expansive market areas such as Solna and Flemingsberg, where the firm currently has several significant office projects under construction.
Fabege said that the transaction also further strengthened its balance sheet and provided scope for continued investment in its urban development projects.
Orgeln 7, which is a freehold property, has a lettable area of 39,200 m2. The property was completely renovated and extended in 2016鈥�2018 and is let to Swedbank and the Swedish Migration Agency. It is certified to BREEAM-SE standard, Excellent.
Gl盲djen 12 is a leasehold with a lettable area of 10,800 m2. The property has recently undergone a complete refurbishment and tenants include CGI, Electrolux and Elgiganten. It is certified to BREEAM-SE standard, Excellent.
Savills and the law firm Born acted as advisors to Fabege.
