Sjælsø sells 75% of Stockholm project to HSB

Danish property company Sjælsø has entered into an agreement with Swedish real estate developer HSB Bostad for the sale of 75% of its major development project in the municipality of Solna, Stockholm. The company said that the sale price is 'significantly above the acquisition price and book value', releasing cash in excess of DKK 100 mln (EUR 14 mln) for Sjælsø.

'We are pleased with the agreement and to join forces with HSB in the further development of the Pampas project,' said Flemming Joseph Jensen, CEO of Sjælsø. 'The Pampas project demonstrates that Sjælsø has the potential to also become a major developer in the Swedish residential market and participate in urban development.'

Sjælsø acquired in 2008 the 25,000 m² office property at the Pampas Marina in the municipality of Solna. In addition to the actual office premises, the property comprises a large site which, when fully developed, is expected to create an opportunity for new residential construction of up to 80,000 m². The Pampas project is a prime-location project close to central Stockholm, and with easy access to the subway and general road networks. A new local development plan for the area is expected in 2012.