The sale will take place as a corporate transaction and concerns the property Hovås 451: 67. The project is part of the framework agreement with Heimstaden, which was signed in June 2018, has a zoning plan in force and a turnkey contract has been signed with Consto AB.

The Nya Hovås district, with a forest and the sea nearby, is a vibrant district with a variety of buildings filled with pleasant shops and meeting places, where a mixture of people live, work and socialize. In that context, this new neighbourhood will fit in well. The buildings are designed by the architects Arkitema. Building is expected to start during Q1 2021 and occupancy is expected in Q1 2023. Following the sale and handover of the project, Magnolia Bostad has a project management agreement with the buyer that runs until occupancy. The project management agreement is invoiced and revenue recognized on an ongoing basis.

“The property has a pleasant location in Nya Hovås, close to environmental amenities and also good public transport. This will be the second major project we have developed in the Göteborg area and we are happy to be part of the successful Nya Hovås urban development project,” says Niklas Ohldin, Western Regional Director.

Wistrand Advokatbyrå has acted as legal adviser to Magnolia Bostad.