Palmfelt Center was built at the end of the 1980s for Bankgirot. The building is home to approximately 26,000 m2 of offices and 5,000 m2 of data centres and warehouses. Current tenants include Försäkringskassan, Bostadsförmedlingen and Stockholms Stads Parkering. The leasehold has a letting rate of 87 per cent and a rental value of approximately SEK 100 million. Palmfelt Center is located in the northern section of Slakthusområdet, directly connected to the new entrance to the underground, which is currently being built through this area.

In 2018 Atrium Ljungberg signed a letter of intent with the City of Stockholm to acquire existing properties and to sign agreements for land allocations in Slakthusområdet. The acquisition of Palmfelt Center is part of the agreement that was signed in 2018.

The acquisition will take place through a share deal and is based on an underlying property value that will be established through an updated market valuation at the end of the year. This has been set preliminarily at SEK 1,560 million. The acquisition is conditional on a legally binding decision from the city council, which is expected in January 2022. The seller is St Eriks Markutveckling and possession is expected in the second quarter of 2022.

“Palmfelt Center has a strong net operating income and an attractive location next to our existing properties and projects in Slakthusområdet. It perfectly complements our investment in one of the best office locations in Stockholm,” says Annica Ånäs, CEO of Atrium Ljungberg.

Slakthusområdet is one of the most interesting development areas in Stockholm. With its industrial and historical character and identity, the area will undergo extensive urban development up to 2030. Atrium Ljungberg’s vision, which we share with the City of Stockholm, is for the area to be an attractive location with offices and residentials, supplemented with a wide variety of food, culture and experiences – a brand new meeting place and an engine for the entire Söderort. The historical architecture and industrial setting, reflecting decades of food production, will continue to coexist with the new development. The development project will be one of the largest undertaken in Sweden in modern times.