As a feature of a strategic exchange transaction with the property company Hemsö, Hemfosa Fastigheter is to acquire 60 public properties in 11 towns in Sweden with an underlying property value of nearly SEK 3.3 billion. At the same time, Hemfosa is selling a site leasehold in Huddinge, with an underlying property value of slightly more than SEK 1.1 billion, to Hemsö. As a result of this transaction, Hemfosa strengthens its position in its prioritized public properties segment.
The acquired properties are located mainly in the Stockholm region, Härnösand, Sundsvall, Umeå, Karlskrona, Finspång, Malmö and Eksjö, with an underlying property value of SEK 3,266 million. The total leasable area amounts to approximately 275,000 sqm. The tenants are predominantly municipal operations such as retirement homes, schools and care centers, but also include the Police Authority and the National Courts Administration. The leasing rate is 98 percent and the average term of the leases was 9.0 years as of year-end 2014.
As a feature of the agreement, Hemfosa is selling the leasehold to the Medicinaren 19 property in Huddinge, with an underlying property value of SEK 1,130 million, to Hemsö.
“We are delighted to have been able to implement this strategic transaction and thus sharply expand our portfolio with public properties in such segments as healthcare and schools. Accordingly, the acquisition is an important step in achieving Hemfosa’s strategy for growth and focusing on the public properties segment,” says Jens Engwall, CEO of Hemfosa Fastigheter.
The acquisition from Hemsö is contingent upon approval from the Swedish Competition Authority. Possession is scheduled to be taken before year-end 2014.
For further information, please contact:
Jens Engwall, CEO, [email protected], mobile phone +46 70-690 6550, switchboard +46 8-448 04 80