Sjælsø sells three retail projects in Sweden for EUR 43 mln

Copenhagen-listed real estate development group Sjælsø has entered into an agreement with Alecta Pensionsförsäkring to sell three retail projects in Sweden for SEK 427 million (EUR 43 mln). Alecta is one of the largest pension funds in Sweden with more than 1.7 million customers.

The first of the three asset is in Helsingborg, where Sjælsø, in joint venture with NorCap, developed a new 9,000 m² grocery store for Coop, the largest grocer chain in Sweden. The project includes a petrol station for OK Q. Alecta takes possession of the property on 1 April 2010.

The second asset is In Åkersberga, north of Stockholm where Sjælsø developed a 13,000-m² retail project. Phase one of the project comprising 10,000 m² has been let out to Coop among others. The project is expected to be ready for use in the autumn of 2011. Alecta will acquire the project on a forward-funding basis as soon as detailed planning and construction permits are in place.

The third project is in Borås. Sjælsø has developed a retail project of 20,000 m². Phase one of the project comprising 10,000 m² has been let out to City Groos. City Groos is expanding heavily on the grocery market in Sweden and presently has 22 stores. Construction will begin in the spring of 2010 and the building is expected to be ready for use in the spring of 2011. Alecta is also acquiring the project on a forward-funding basis as soon as detailed planning and construction permission are in place.

Flemming Joseph Jensen, CEO of Sjælsø, said: 'Sjælsø is satisfied to realise that we are again seeing increasing interest from investors in well-located projects let out to good tenants. The agreement with Alecta confirms that nstitutional investors are in the market for new projects. The sale to Alecta is Sjælsø’s first large sale in Sweden to institutional investors.'