Stockholm-listed real estate company Balder and construction company Peab have acquired properties worth a combined SEK 7.3 bn (€628.5 mln) from Fastighets AB Centur.
Balder has acquired properties worth SEK 5.2 bn (€447.7 mln) from its joint venture, Fastighets AB Centur.
Under the agreement, Balder takes ownership of investment properties, including commercial properties like Lyckholms in Gothenburg and the Steam Hotel in Västerås. Notable tenants include Bilia.
Balder's acquisition expands its portfolio by approximately 30 properties, taking full ownership of Centur's assets. Only a few properties, with a total book value of SEK 600 mln (€51.6 mln), remain with Fastighets AB Centur.
Simultaneously, Fastighets AB Centur has sold development properties, primarily centered around Malmö, valued at SEK 2.1 bn (€180 mln) to construction company Peab.
Peab is acquiring four investment properties in Varvstaden with a net operating income of SEK 43 mln (€3.7 mln) for SEK 783 mln (€67.4 mln). The acquisition also includes approximately 280,000 m2 of planned development rights for SEK 1.2 bn (€103.3 mln). Additionally, Peab is acquiring an ongoing development project, Hall 259, with 11,000 m2 of leasable area and 550 parking spaces, which will be completed in 2027.
Peab is also acquiring an investment property in the Kirseberg-Östervärn area in Malmö for SEK 68 mln (€5.8 mln). A zoning plan process is underway to enable the development of approximately 55,000 m2 of building rights for both residential and office space in the area.
Balder's CEO Erik Selin commented: ‘We are grateful for the good collaboration with Peab, where we together have been able to create great value in Centur and which we now are able to divide between us. Operationally the transaction is undramatic since we already manage the properties, but the deal does strengthen Balder's financial position and earning per share even regarding the directed cash issue we do in connection to the acquisition.’
Göran Linder, manager Project Development at Peab, added: ‘We believe in Malmö and its potential for developing residential and other kinds of properties. We have been working in Varvsstaden for a long time and are very confident about the area. We are freeing up capital by divesting completed properties in the joint venture company Centur which has generated a good return over the years and developed well in value, which has led to the divestments generating a profit.’
Balder's acquisition of Centur's properties brings in an annualized net operating income of approximately SEK 365 mln (€31.4 mln). For Peab, the transactions will have a positive effect of about SEK 400 mln (€34.4 mln) on its operating profit in Q4.
