Fabege sells office property in central Stockholm for EUR 24m

Stockholm-listed real estate firm Fabege has divested the leasehold for the office and retail property located at Orgelpipan 4 in central Stockholm for SEK 230 mln (EUR 24 mln). This brings the number of sales transactions by Fabege so far in 2010 to six, with a total volume of EUR 155 mln.

The largest transaction took place earlier in June when Hamburg-based fund manager Union Investment acquired an office property on Solna Strand in the municipality of Stockholm from Fabege for SEK 555 mln (almost EUR 58 mln).

The Orgelpipan 4 property comprises about 4,550 m² and consists of an office building with retail premises on the ground floor. Transfer to the buyer will take place at end-June.
The sale will result in a capital gain of SEK 29m after tax, which will be recognised in the second quarter of 2010.

'The property is in a development phase, and we choose to focus on investments in leaseholds in our larger development projects,' said Christian Hermelin, president of Fabege.