The acquisition comprises the Hermes 10 and Hermes 16 properties immediately south of Helsingborg C. The main building was designed by the architect Mogens Mogensen for Helsingborgs Gummifabrik AB, which later became Tretorn. The property has a lettable area of 51,000 sqm, mainly comprising office and educational premises, a popular restaurant and around 1,000 parking spaces. The seller is Alecta Pensionsförsäkring, Ömsesidigt, and the transaction was completed 12 April 2019.

The properties were acquired through a property transaction for a consideration of SEK 1,255 million. The rental value is around SEK 95 million and the properties are currently just over 97 percent let. When fully let, the yield is estimated at around 5.5 percent. The main financing for the investment is through existing credit facilities.

Major tenants include Lund University, the City of Helsingborg, IKEA IT and CapGemini. Another tenant is Mindpark, a coworking operation with around 75 companies and entrepreneurs, conference and meeting rooms of different sizes, event spaces, a café, and business incubators and accelerators.

“The acquisition is an important part of our continued growth in Helsingborg. We see a healthy demand and our existing office properties in Helsingborg are essentially fully let. With this addition, we can help both current and new customers develop their operations,” says Ulrika Hallengren, CEO of Wihlborgs Fastigheter.

“Helsingborg is an active and attractive city that’s at the forefront of areas including business climate, digitisation and the environment. The city is heading toward an exciting future and we’re pleased to be able to contribute to development both through expanding the properties we’ve now acquired and through creating new, attractive office space in Prisma in Oceanhamnen. We’re also confident that the renovations at Helsingborg C will contribute to positive development in the city.”

CBRE was the sellers advisor.