Fabege is transferring two properties to a new residential partnership with fellow Swedish real state company, Oscar Properties Invest, for a total consideration of SEK 315 mln (about EUR 32 mln).
Fabege is transferring two properties to a new residential partnership with fellow Swedish real state company, Oscar Properties Invest, for a total consideration of SEK 315 mln (about EUR 32 mln).
Stockholm-listed Fabege and Oscar Properties have formed a joint venture for the development of residential properties with tenant-owner flats in Stockholm.
The new company will be owned in equal parts by the two parties and will acquire properties for new construction or conversion of existing buildings into residential units. These will subsequently be transferred to tenant-owner associations, a type of housing cooperative that is common in Sweden.
Concluded at the beginning of the year, the deal was contingent on the jointly-owned company obtaining funding for the acquisition of developable properties, which has now been arranged. The partnership company will take possession of the two properties from Fabege in July and December 2010.
'Stockholm is growing, and there is a long-term need for additional housing. Fabege has several existing buildings in locations that are more suited for residential use than office use. Converting these buildings is good both in terms of sustainability and profitability,' said Fabege CEO Christian Hermelin.