K-Fastigheter has acquired the 7cq Vallensbæk property, for which a building permit has been approved for 7,779 square metres of lettable space. The site is located in Vallensbæk Strand, just south of Copenhagen. The acquisition is being conducted as a corporate transaction, with a purchase consideration amounting to DKK 49 million. The sellers are PLC Holding Aps and Danas Holding ApS.
“The venture is in line with K-Fastigheter’s operational target of managing at least 5,000 apartments in the Nordic region at the end of 2023 while scaling up the number of annual production starts to 1,000 apartments annually before the end of 2023,” says Jacob Karlsson, CEO of K-Fast Holding AB. “K-Fastigheter differs from many of the current Swedish players active in the Danish market by implementing, just as in Sweden, our strong business model in which we own the entire chain, from project development and construction to future property management. This makes us confident in now taking our first step into the Danish market.”
Jacob Karlsson continues: “The property is located only 140 kilometres from our head office in Hässleholm. It is geographically closer than some other of our projects, so we are managing the project through our existing Swedish organization for project development and construction and will, in the longer term, set up our own property management organization in Denmark.”
“Our venture in Denmark, focusing on the Copenhagen area, represents one of the more significant decisions we have made so far in K-Fastigheter’s history. On the otherhand, under current conditions, we can achieve better margins, in terms of both cash flow and value, than in corresponding projects in Sweden. I see this as a first step in a long-term investment in Denmark, focusing on Greater Copenhagen.”
A building permit for 95 apartments and 92 parking spaces in the garage has already gained legal force. The existing building permits are well in-line with K-Fastigheter’s Apartment Block concept. VICI Advokater has been the adviser to the buyer.