Danish real estate company Sjaelso Gruppen plans to convert a 37,000 m[sup]2[/sup] development property it has acquired in the Swedish capital Stockholm for retail purposes. The company has entered into an agreement through its Swedish subsidiary IBI Sverige to acquire the property at Alvsjo, near one of the largest trade fair and conference centres in Scandinavia, for DKK 300 mln (EUR 40 mln) The vendor is AFA Sjuk-forsakring.
Danish real estate company Sjaelso Gruppen plans to convert a 37,000 m2 development property it has acquired in the Swedish capital Stockholm for retail purposes. The company has entered into an agreement through its Swedish subsidiary IBI Sverige to acquire the property at Alvsjo, near one of the largest trade fair and conference centres in Scandinavia, for DKK 300 mln (EUR 40 mln) The vendor is AFA Sjuk-forsakring.
Sjaelso said the Alvsjo area is characterised by new property developments and the company is in talks with potential tenants in relation to converting the property for retail use. The municipality has approved the change of use. Noting the high level of activity in the Nordic retail market is set to continue, Sjaelso said it expects to enter agreements on several new retail projects in 2007 to meet the demand from users and investors.
The company said it anticipates a pre-tax profit in the region of DKK 725 mln (EUR 97 mln) for 2006, but the final results will be published on February 27. Sjaelso is maintaining its forecast of pre-tax profits of DKK 800 mln to DKK 1 bn in 2007.
