Wihlborgs Makes Major Acquisition in Lund
Sweden Following its acquisition of Nya Vattentornet 3 at Ideon in Lund in the autumn, Wihlborgs is purchasing the two adjacent office properties, Nya Vattentornet 2 and Nya Vattentornet 4, which comprise a total lettable area of 49,000 sqm. The transaction price is MSEK 1,260 (EUR 120M).
Nya Vattentornet 4 encompasses 25,000 smq of lettable area, with Sony Mobile as the largest tenant, and a multistorey car park of around 370 parking spaces. The property also has a restaurant. The buildings are environmentally certified in line with LEED Gold.
The properties were acquired using a corporate wrapper to a purchase price of MSEK 1,260. The rental value is MSEK 105 and the properties are currently just over 20 percent vacant. When fully let, the yield is estimated at just under 6 percent.
The seller is Vasakronan and the transaction was completed today, 8 February 2019. The investment is primarily being financed through existing credit facilities.
“This acquisition is a natural part of our continued investment in growth and increased density in Lund. Over the course of a few months, we’ve been able to complement our Ideon portfolio with 70,000 smq of attractive office space that’s easily accessible via the new tram line,” says Ulrika Hallengren, CEO of Wihlborgs Fastigheter.
“There is great potential in Lund, where proximity to the university and access to a workforce with specialist expertise attracts new companies and provides growth opportunities for existing companies. One of the most recent examples is our tenant Volvo Cars, which started a small development centre at Ideon in autumn 2016, then gradually grew until, by year-end 2018, they took over the entire 7,000 smq building.”
Following the acquisition, Wihlborgs will own and manage 291,000 smq in Lund, of which 183,000 smq are located at Ideon. Wihlborgs owns 50 percent of Fastighets AB ML4, the company that built and owns the Max IV facility in Lund, which has been let to Lund University under a 25-year lease.