The KF-huset property is located right next to the Stadsgården wharf at Slussen. Atrium Ljungberg already owns neighbouring Glashuset and Sjömansinstitutet, which together have approximately 26,000 sqm letting area in total. The company also has a land allocation for a development right consisting of 18,000 sqm GFA at the Stadsgården wharf in front of Glashuset. In spring 2018, an agreement was signed with the City of Stockholm to develop Mälarterrassen at Slussen.

“KF-huset is a fantastic property with strong roots in Stockholm. The acquisition reinforces our position on Södermalm as well as our opportunities to be part of Slussen’s development. We want to create great cohesiveness at the site, where different activities reinforce one another. The aim is for Slussen to become a vibrant meeting place for everyone in Stockholm,” says Monica Fallenius, Business Area Director, Transactions and Leasing, Atrium Ljungberg.

The property will undergo refurbishment and modernisation. Attractive and modern office space with public-access ground floors are being planned. In conjunction with the refurbishment, Atrium Ljungberg is also looking into the possibility of developing a link to the future retail hub and public transport hub at Slussen.

“The deal is strategically right for both parties. With Folksam Fastigheter’s management focus, the fully developed Blästern 6 and Roddaren 7 properties are positive from a long-term perspective. We, on the other hand, are acquiring a property and a building right that we can develop based on our project expertise, thus helping to generate additional added value for Slussen as a whole,” says Annica Ånäs, CEO, Atrium Ljungberg.

The KF-huset property comprises just over 22,000 sqm letting area, and the building right comprises 7,500 sqm GFA. The transaction will be conducted through a company sale, where the underlying property value is SEK 1,530 million. The property is almost fully let, and has a rental value of MSEK 65. Atrium Ljungberg will take possession of the property on 1 November 2018.

At the same time, the Blästern 6 property in Hagastaden and the Roddaren 7 property on Kungsholmen in Stockholm will be divested. The properties comprise 32,250 sqm letting area, and the rental value for the two properties is MSEK 105. The transaction will be conducted through company sale, where the underlying value of the two properties is SEK 2.175 billion. The sale will yield a profit after tax of approximately SEK 245 million for the Atrium Ljungberg Group. SEK 170 million will be attributed to deferred tax and be reported in the accounts for the fourth quarter of 2018.

Catella has initiated the swap and acted as the advisor for Folksam.