The JV company owns via the Genova Viby Fastigheter AB the property Viby 19:3 in Brunna, Upplands Bro municipality. The transaction is based on an underlying property value of SEK 325 million. The purchase price amounts to SEK 81 million for 30 per cent of the shares with a date of access on August 28, 2019. The purchase price is financed with a reversal that falls due for repayment by 50 per cent when the first building permit for the project has been received and 50 per cent of the reverse matures for repayment five years after the aforementioned building permits were obtained.
In 2014, Genova acquired the Viby 19: 3 property of approximately 15,000 sq.m. and 110,000 sq.m. of land containing a Coop Forum. In 2017, Coop left the property and today the property is basically fully let to Riddermarks Bil, Pop-Up Padel and Tolga Food, among others. The rental value from current tenants amounts to approximately SEK 7 million. K2A and Genova will jointly carry out a detailed planning work for the property with the aim of obtaining a detailed plan of approximately 110,000 sq.m. BTA for primarily housing, care, school and retail and then exploit the property for development and construction of a new district. The project is expected to run for a period of about 10 years. Construction of the first phase is expected to take place in 2021.
"We believe this is a high-quality project in the Stockholm region and look forward to developing the area in collaboration with Genova who share our philosophy of sustainable development," comments Johan Knaust, CEO of K2A.
"Our ambition is to develop a new living and sustainable district in a good location in Upplands-Bro, while at the same time creating value by refining our existing property. We are very happy to realize this project together with K2A," comments Michael Moschewitz, CEO of Genova Property Group