Genova Property Group has agreed to partially sell their Journalisten 1 and Handelsmannen 1 properties in Norrtälje, Sweden, to a JV with Nrep in which Genova owns 50%.
The sale price is roughly SEK 1.3 bn (€115.2 mln), matching the book value.
This deal will see Genova gain around SEK 185 mln (€16.4 mln) in liquid assets and reduce their interest-bearing debt by roughly SEK 1 bn (€88.6 mln).
Acquired in 2016 for SEK 40 mln (€3.5 mln), the properties, with a strong focus on sustainability, generate a total rental value of around SEK 61 mln (€5.4 mln) annually. Genova expects healthy rental growth in the coming years, especially for the investment-supported apartments. The Swedish property company will retain management responsibility for the properties through a separate agreement.
Michael Moschewitz, CEO of Genova Property Group, said: ‘We have developed these former industry properties into new vibrant residential quarters in central Norrtälje. Now we are taking the next step by partially divesting the project and at the same time starting a strategic collaboration with Nrep for the further development of the properties. This transaction strengthens Genova's balance sheet and liquidity and also enables future investments.’
Carl Adam von Schéele, head of Sweden, Nrep, added: ‘We are happy to start this collaboration with Genova, which has developed attractive and sustainable properties with apartments at reasonable rents as well as a modern retirement home and residential care facility combined with a preschool. It is entirely in accordance with our strategy to work together with long-term partners in residential and community properties in a fine growth municipality.’
Journalisten 1 was completed in 2023 and is fully occupied. It boasts a lettable area of 16,000 m2 and offers 162 rental apartments, a retirement home and residential care facility with 80 apartments, a preschool with space for 125 children, and a garage. The closing for Journalisten 1 is planned to take place in June 2024.
Handelsmannen 1 will be completed at the end of 2024 and will consist of 246 rental apartments and a lettable area of around 12,800 m2, and a garage. The closing for the property should take place during Q1 2025.
