Swedish property company K-Fast Holding AB (K-Fastigheter) has signed a letter of intent with an institutional investor for the divestment of a property portfolio in Denmark.
This follows an announcement in September 2023, where K-Fastigheter expressed their interest in exploring the sale. The portfolio consists of four properties totaling 311 apartments that no longer align with the company's standard development concept.
The current process involves technical and economic due diligence by the potential buyer. If both parties reach a final agreement, the transfer of properties is expected to occur in Q2 2024.
K-Fastigheter entered the Danish market in 2020 through acquisitions in the Copenhagen metro area (Høje-Taastrup, Vallensbæk Strand, Solrød Strand, and Greve).
The total value of the property portfolio is estimated at SEK 1.07 bn (€95 mln), slightly lower than the book value of SEK 1.14 bn (€102 mln) at the end of 2023. This sale aims to strengthen K-Fastigheter's financial position and enable them to focus on acquiring building rights and starting new construction projects.
Even after the potential sale, K-Fastigheter will maintain a presence in Copenhagen. They have a separate project underway in Ballerup which will add 153 apartments upon completion. The company remains committed to acquiring more building rights in the Copenhagen area.
K-Fastigheter offers around 4,900 homes across Sweden and Denmark and the total property portfolio is valued at SEK 14.9 bn (€1.3 bn).
