K-Fastigheter has signed an agreement with Västprojekt AB and partners relating to the acquisition of the property Borås Getängen 22 in the municipality of Borås. K-Fastigheter intends to produce a detailed development plan that enables the construction of some 350 apartments in the Group’s proprietary Lateral Low-rise concept buildings.
K-Fastigheter has signed an agreement regarding the acquisition of the property Borås Getängen in northwestern Borås. The property currently houses several tenants, including local college Praktiska Gymnasiet, the largest tenant, which has signed a rental agreement until 30 June 2025. K-Fastigheter intends to continue to pursue the detailed development plan initiated by the former owners. The underlying total property value amounts to SEK 47 M and is based on a direct return requirement of 6.5 percent at current rental values. The expected gross floor area (GTA) of the building rights totals approximately 32,000 square meters.
“Borås is expanding quickly and the municipality assesses that demand for housing is acute, with forecast growth of some 1,500 new inhabitants per year. We want to build in growth regions and Borås meets our requirements,” Jacob Karlsson, CEO of K-Fast Holding AB commented. “The sellers have received planning notification for the construction of apartment blocks on the property and we will continue to pursue the detailed development plan with the aim of starting construction in fall 2025 at the earliest. Until that date, our tenant Praktiska Gymnasiet runs college operations at Risängsgatan 6.”
“We would like to thank K-Fastigheter for a quick and smooth transaction and that the company is now completing the project. The sale is in line with Västprojekt’s business model where we develop attractive properties alongside partners,” commented Martin Magnusson at Västprojekt AB. “The sale frees up resources so that we can continue to develop our existing project portfolio and carry out promising new acquisitions. We would like to take the opportunity to thank Swedbank Commercial Property who acted as our advisor on the project.”
The acquisition takes the form of a company acquisition and the underlying property value amounts to approximately SEK 47 million. An additional purchase consideration is payable when the new zoning plan gains legal force, totaling SEK 2,700 per square meter GTA above ground, less the preliminary purchase price paid. The transaction is financed with existing cash, in combination with K-Fastigheter taking over existing bank loans.
As of today’s date, K-Fastigheter paid a preliminary purchase price of some SEK 15.7 million and took possession of all the shares in Fastighetsaktiebolaget Getängen 22 AB, the owner of Borås Getängen 22. Christian Karlsson, Advokatfirman VICI, acted as the buyer’s legal representative and Anders Wennergren at law firm Glimstedt acted as the seller’s legal representative.
K-Fastigheter has also has entered into an agreement with Palisander Gruppen Skandinavien for the acquisition of the property Gävle Sätra 108:20 in Gävle municipality. K-Fastigheter plans to build approximately 700 apartments in the Group’s proprietary Lateral Low-Rise concept building.
K-Fastigheter has entered into an agreement to acquire the property Gävle Sätra 108:20 at Gävletravet in northwestern Gävle. The underlying property value amounts to approximately SEK 122 million and the expected gross total area (GTA) amounts to approximately 51,000 square meters based on a legally binding zoning plan.
“Today’s agreement is a good addition to our plan for Gävle. We plan to start construction of around 700 rental units in three different blocks in stages over a number of years. The apartments will maintain high quality at rental levels that fit regular wallets. K-Fastigheter is already established in this area in Gävle, right now we are building in collaboration with BoKlok 60 apartments that will be ready for occupancy by the turn of the year 2021/2022. In addition, we today started construction on our own project of 92 apartments in our proprietary Apartment Block concept building in Fredrikskans in the Strömsbro district,” says Jacob Karlsson, CEO of K-Fast Holding AB.
Thomas Henriksen, chairman of Palisander Gruppen Scandinavia: “As the seller, we are very proud and happy to be able to transfer this property to a serious, financially strong and stable player such as K-Fastigheter, after 6-7 years of challenging development of a detailed plan for a total of over 130,000 square meters of GTA building rights in the district. With its attractive sustainable construction concept and affordable housing, Gävle municipality’s residents will provide something that is really in demand.”
The acquisition takes place through a company transaction and the underlying property value amounts to approximately SEK 122 million, based on SEK 2,350 per square meter of GTA above ground. The transaction is financed through existing cash balances. The anticipated takeover date of all shares in Palisander Förvaltning AB, civil law owner of Gävle Sätra 108:20, is 30 October 2021. Christian Karlsson, Advokatfirman VICI, acted as the buyer’s legal representative and Next Advokater, whose team was led by Joacim Öhlund, partner, acted as the seller’s legal representative.