NCC offloads €170m Stockholm development project

Swedish construction group NCC is selling the Torsplan 2 office property in the Hagastaden district of Stockholm to Castellum's Brostaden unit for SEK 1.6 bn (€170 mln).

Brostaden will pay the asset partly through the transfer of a site in the Solna business park, including 35,000-40,000 m2 of office development rights as well as an existing 11,000 m2 office building from the 1980s, valued at SEK 280 mln.

The 23,000 m2 Torsplan property has an occupancy rate of 71% and NCC will provide rental guarantees to the buyer for the vacant premises for 24 months, corresponding to a value of about SEK 40 mln, from the date of occupancy.

Tenants include the Stockholm Health Care Services, gym chain Sats and supermarket chain Willys Hemma.

Completion of the deal is scheduled for the first quarter of 2017.

'Hagastaden in Stockholm is a prime example of how NCC, in cooperation with the City of Stockholm, has transformed the area into an attractive and accessible city district. In parallel with selling our second successful project in the area, we are also very pleased to be able to enter a swap arrangement with Brostaden, thereby giving us the opportunity to expand our project portfolio,' said Carola Lavén, business area manager at NCC Property Development.

'During 2015, we’ve sold properties totaling SEK 1 bn, in addition to sold residential projects. And we’ve invested SEK 750 mln in properties such as Kungsholmen, and Marievik. The intention is to continue the reconstruction of the portfolio,' added Castellum's CEO, Henrik Saxborn.