Wihlborgs Acquires in Lund
Sweden Wihlborgs has signed an agreement for the acquisition of the Nya Vattentornet 3 property in Lund with a lettable area of 21,700 sqm, comprising primarily office space. The transaction price is MSEK 570 (EUR 55M).
The property is located in the Ideon area in Lund and, in addition to offices, also encompasses a multistorey car park with 600 spaces and development rights for around 11,000 sqm GFA of additional office space. The property was sold using a corporate wrapper with an underlying property value of MSEK 570 (EUR 55M). When fully let, the yield is estimated at 6 percent. Occupancy will be taken on 1 October 2018.
The property is currently slightly more than 90 percent let, and the largest tenant is Ericsson, which rents around 13,000 sqm. Other tenants includes CellaVision and the City of Lund as well as Smarta kök, which operates a popular restaurant in the building.
“We are pleased to acquire a modern property with an attractive location in the eastern part of Ideon, just south of the new Brunnshög city district. This is an area that will continue to be developed for many years to come with more companies, housing and research. The opening of the tram line in 2020 will further boost the attractiveness of the property’s location, since one of the stops is right outside,” says Ulrika Hallengren, CEO of Wihlborgs Fastigheter.
“The acquisition will allow us to further strengthen our position as the largest commercial property owner in Lund. Wihlborgs has an extensive, long-term commitment to Lund, and not least to Ideon. We have identified considerable potential in northeast Lund, and in the city centre, and this acquisition is a key element of Wihlborgs’ continued development in Lund.
Following the acquisition, Wihlborgs will own and manage 242,000 sqm in Lund, of which 134,000 sqm are located at Ideon. Wihlborgs and Peab jointly own Fastighets AB ML4, the company that built the Max IV facility in Lund, which has been let to Lund University under a 25-year lease.