"It feels very gratifying to be able to participate in the realisation of such a unique urban development project. The fact that Karlatornet is included as part of a long-term transaction, which comprises almost 1,400 rental apartments and just over 12,000 sqm of commercial premises, feels extra satisfying," says Erik Selin CEO of Balder.

Fastighets AB Balder has today on 17 December entered into an agreement to acquire preference shares in Karlatornet AB (“Karlatornet”) for SEK 25,000 equivalent to 50 per cent of the capital and votes. Karlatornet is the owner of the properties where the Nordic countries’ tallest skyscraper, which will consist of 73 floors and will be 245 metres high, will be built. The properties include about 600 apartments, 300 hotel rooms as well as 8,000 sqm of office premises. Today approximately 80 per cent of the apartments are sold and 100 per cent of the hotel and office premises are let. According to the agreement, Serneke will guarantee the remaining unsold apartments. Meanwhile, Balder obtains an option to acquire the commercial premises.

"To secure Balder as a partner in Karlatornet is an optimal solution for us, for the project and for the city. In Balder, we have a stable and long-term partner with a strong local base that has the same strong belief in the project and in the development of the city as we have. Together, we will now continue the implementation of this unique urban development project, which will strengthen Gothenburg and hopefully instill pride in Gothenburgers," says Ola Serneke, CEO of Serneke Group.

Serneke guarantees the total costs for constructing Karlatornet and has already invested SEK 1,500m in foundation work and has started the construction of the first floors. Balder is providing SEK 500m in the form of a shareholder’s loan and the remaining financing needs have been secured through a building credit from Nordea of SEK 3,000m.

The preference shares only carry a right to a priority dividend of SEK 600m. Meanwhile, Balder has undertaken to subscribe for 2,300,000 B shares in Serneke at a subscription price of SEK 53, equivalent to SEK 122,000,000.

Balder also agrees to acquire 1,400 rental apartments and 12,000 sqm of commercial premises from Serneke. 75 per cent of the apartments will be built in Stockholm, Gothenburg and Malmö. The majority of the apartments will be completed between 2023–2025 and the remainder during 2028. The commercial premises, with the exception of the commercial ground floors in the residential buildings, are community service properties such as schools and public authority buildings. The transaction is estimated to have an underlying property value, including investment support of approximately SEK 3,200m.