Corem Property Group has signed agreements to sell 19 properties across Sweden for a total of SEK 768 mln (€66 mln), matching their book value.
The disposal includes the Ellipsen 5 property in Huddinge and leaseholds for Magneten 2 and Megafonen 4 properties in Linköping.
These properties primarily consist of warehouses and light industrial spaces, totalling 9,050 m2 in lettable area.
Additionally, Corem is exiting the Jönköping market entirely with the sale of 16 properties encompassing 60,000 m2. These properties are mainly warehouses with some office space included.
Emilshus, a Swedish commercial real estate manager, is acquiring the 16 properties in Jönköping and the two properties in Linköping for SEK 713 mln (€62 mln). The properties have an average remaining lease term of 5.1 years and an annual rental value of SEK 65 mln (€5 mln).
The properties have a 96% lease rate with well-known tenants such as Bubs (Orkla), Postnord, Ramudden, ÖoB and DHL.
Peeter Kinnunen, head of transactions at Corem, said: ‘The sales free up capital for new business opportunities and continued reduced debt. Corem is doing a geographic streamlining and at the same time the buyer in Jönköping gets a very nice and integrated portfolio for further development.’
Jakob Fyrberg, CEO of Emilshus, added: ‘This is a strategically important deal for Emilshus, which through the acquisition will become a major player in the Jönköping region. The properties are profitable, located in good micro-locations and have a long remaining lease term.’
The transfer of ownership is scheduled for 29 April for Ellipsen 5 and 15 May for the remaining properties.
Walthon Advokater served as Corem's legal counsel for both transactions.
