Opening is expected to take place during spring 2018. The lease will lower Kungsleden’s total vacancy rate in Kista City with 4.2 per cent to 11.8 per cent.

The property, located on Skalholtsgatan 2 in Kista, is an unmodern office building with large vacancy levels, which will be renovated and modernized into an apartment hotel. Current tenants have mostly been moved to other properties within Kungsleden’s Kista portfolio, increasing the occupancy rate to 88.2 per cent.

The total investment accounts to MSEK 130 (€14M).

“We have for quite some time studied how Holar 1 can be utilized in the best possible way for both tenants and us as owners. Organisations in Kista require flexible accommodation solutions and Holar 1 has a location close to green areas in a calm part of Kista suitable for residential purposes. This is why we look forward to working with Kista Hotel Apartments in the development of Holar 1 into an apartment hotel of the highest quality and with an exciting concept”, says Frida Stannow Lind, Head of Property Development at Kungsleden.

Kista is one of Stockholm’s largest office markets with approximately 900,000 sqm office and retail space.