The portfolio comprises three compulsory schools, ten preschools, two housing facilities and an ice-skating rink. The seller is Nacka Municipality which will also be the main tenant. The estimated average remaining lease term is approximately 20 years including planned projects. Excluding transaction costs, the property value amounts to MSEK 612 (EUR 64M). In cooperation with Nacka Municipality, the properties will be renovated, refurbished and extended in order to fulfil the Municipality’s vision. The project volume is estimated at about MSEK 775-900 (EUR 80-94M).

“We have strong partnership with Nacka Municipality and are proud to have been entrusted with the task of owning, managing and developing additional properties in the Municipality,” says Per Berggren, CEO of Hemsö.

After completion, the lettable area is expected to total approximately 34,000 sqm, with an estimated annual rental value of just over MSEK 70 (EUR 7M). The portfolio will be transferred on 1 December 2016 and the projects in the portfolio are expected to be completed by 2021. The transaction is conditional on the approval of the Municipal Council.

The acquisition is being financed within the framework of Hemsö’s ongoing financing activities.