Fabege AB has signed an agreement with CLS Holdings plc for the acquisition of CLS' property portfolio in Solna Business Park for €390 million. The agreement comprises six properties* with a total lettable area of about 157,000 m² At the same time, Fabege is selling a property in Bochum, Germany, to CLS for €17,37 million. The properties will be taken over by their new owners on 21 August.
Solna Business Park, which is centrally located in the municipality of Solna, has had strong growth in recent years. Fabege already owns two properties in the area consisting of approximately 41,000 m². Through the acquisition, a concentrated management unit is being formed consisting of eight properties where added value is being created through even better possibilities for effective management and refinement. After the acquisition, Faberge will own around 85 percent of the lettable area in Solna Business Park
Major tenants in the properties acquired from CLS include ICA, Coop, EDB Business Partner, Green Cargo and Unilever. The average term of contracts is seven years. The occupancy rate is 93% and the initial direct yield about 6%.
The divested property in Germany formed part of Tornet's portfolio and has a lettable area of about 42,000 m². The realised change in value amounts to €1,09 million and will be reported during the third quarter 2006.
"Through the acquisition we are further strengthening our market position in Solna. Fabege will now have 29 properties in Solna with a total lettable areas of about 490,000 m²" said Erik Paulsson, Fabege's CEO,
"Solna Business Park is today a very attractive area with excellent communications, and we will continue to develop the area and the Solna Business Park brand", Erik Paulsson continues.