The acquired properties are Degeln 1 and Brandsprutan 2 in Täby, Gustavsberg 1:316 in Värmdö and Trädgårdsmästaren 14 in Botkyrka. The total lettable area is approximately 42,300 sqm. The properties are situated in strategic locations with good public transport services and close to expansive areas. The total rental income on an annual basis is approximately SEK 59m, with estimated net operating income of about SEK 46m. The tenants are mainly schools and municipal operations, including Internationella Engelska Skolan, Botkyrka Municipality, Värmdö Tekniska Gymnasium and Värmdö Municipality (the authority responsible for Gustavsbergs Gymnasium). The average remaining rental period is approximately five years.
The accession date is 31 March 2021. The properties were acquired through companies and the consideration is based on an agreed property value of SEK 970m before deductions for deferred tax, corresponding to about SEK 23,000/sqm. The seller is Profi Fastigheter.
“This is a strategic acquisition that is well-matched with Genova in terms of both geography and profile. With this transaction, we are taking a significant growth step forward in our core market of Greater Stockholm, and our rental income from community service properties and residential units is getting close to 60%. The portfolio will add considerably improved earnings capacity and income from property management from stable tenants, while the properties offer value potential through active management,” says Michael Moschewitz, CEO of Genova Property Group.