Effective 1 July 2010, Fabege has sold the property Vallentuna Rickeby 1:477 and an additional approximately 20,000 m² of land (part of the Vallentuna Rickeby 1:327 property) to Greater Stockholm Public Transport Company.
The property comprises a developed site with a service building for buses. In addition, Fabege has sold part of the Rovan 1 property to Peab. The divested portion pertains to about 18,000 m² of residential development rights located on or by Huvudsta centrum. The total purchase consideration for the two transactions is SEK 146.5 million (15.2 mln.). The after-tax gain will be SEK 28 million, which will be recognized in profit in the third quarter.
"As a result of our planning work, we have generated favorable development gains. We have now chosen to divest land and development rights without this generating a return in order to invest instead in profitable office projects in our high-priority areas," comments Christian Hermelin, President of Fabege.