Fabege has sold the Bocken 51 property to the tenant-owners' association, Lästmakarpalatset. The association will take possession of the property on January 4, 2011, and will simultaneously take over the ongoing contract for the construction of 45 tenant-owner flats, which are scheduled for completion in November 2011.
The property will comprise a total of 2,438 m² of floor space, comprising 2,366 m² of housing and 72 m² of retail space. The sales consideration amounts to SEK 139 million (approx. 15.6 million), which matches the most recent market valuation (at December 31, 2010). For this reason, the sale, which will be recognized in the first quarter of 2011, will not give rise to a capital gain.
"We are delighted as this project will contribute to creating a vibrant city, with the new construction of housing in an inner-city location. The transaction will release capital that we will be able to invest in our prioritized commercial properties," says Klaus Hansen Vikström, Director of Business Development at Fabege.