Property firm Svenska Handelsfastigheter has entered into an agreement with CBRE IM to acquire Bromma Blocks in a share deal worth SEK 1.173 bn (€101 mln), below the latest book value of the property of SEK 1.725 bn as of December 31, 2023.
The acquisition includes five properties with a total lettable area of just under 57,500 m2 and a well-located building right of 50,000 m2. Known as Bromma Blocks, the complex is in one of the Stockholm area's leading retail locations. Food and other daily goods account for around 50% of the trading venue's total turnover, which in 2023 amounted to approximately SEK 2.1 bn. The assets generate a total rental income of SEK 210.3 mln.
The assets are currently 91% let. Coop, City Gross, Elgiganten, XXL, Jula and Rusta are among the larger tenants.
'We are really looking forward to taking over Bromma Blocks, which has an excellent location in an expanding district. We strongly believe in Bromma Blocks as a well-established trading location for almost 20 years in combination with Svenska Handelsfastigheter as a long-term player with strong owners. We sees good opportunities to further develop the area based on our extensive experience in foreign trade and low prices,' said Thomas Holm, CEO of Svenska Handelsfastigheter.
The deal is financed with external loans from Nordea and equity.
Svenska Handelsfastigheter's portfolio encompasses 882,000 m2 of retail space in 145 municipalities across Sweden. In May, the firm bought a 85,200 m2 portfolio of commercial properties. Following the deal, Svenska Handelsfastigheter's total retail space will surpass one million square meters.
