Fabege and Catena signed an agreement whereby Fabege is to acquire the project properties Stora Frösunda 2 and Hagalund 2:2 located beside the Frösundaleden highway in Solna, “Haga Norra”.

The properties have a site area of about 51,000 sqm and, according to the new zoning plan, comprise approximately 225,000 sqm of development rights for residential and commercial use. The property is currently developed as a car showroom for Bilia.

The acquisition will be effected at a property value of €157M (SEK 1,450m), with possession scheduled to be taken in June 2015.

The transaction is subject to approval by an extraordinary general meeting of Catena shareholders, since it is considered a related-party transaction due to Fabege’s controlling interest in Catena.

The zoning plan for the Haga Norra area has been established and development planning can commence. Of the total volume of development rights, housing accounts for approximately 90,000 sqm. The remainder pertains to commercial development rights, thus favourably complementing Fabege’s existing portfolio in Solna/Arenastaden.

“As a result of the acquisition, we ensure access to attractive office development rights in an area with very good transport links. We continue to see great potential from Fabege’s future development of Arenastaden,” comments Christian Hermelin, President and CEO of Fabege.