Fabege is, together with Peab and Brinova, forming a new residential property company, Tornet AB, which will own and develop rental apartments. The company will develop and manage existing properties and will also build new rental properties in municipalities where there is currently a shortage of housing, primarily in the Stockholm, Mälaren Valley, Gothenburg and Öresund regions. Peab and Fabege will hold 45% each in Tornet and Brinova 10%.
Under the terms of the deal, Fabege will exchange residential properties in Tensta/Rinkeby outside Stockholm for a 45 per cent stake in Tornet AB in January 2010. The properties have a total residential floor space of about 93,000 m2 in the form of rental apartments worth an estimated SEK 600m.
"We see the deal as one more step in our ambition to focus our commercial portfolio. It will enable us to devote even more attention to our core business and to do what we are really good at," Christian Hermelin, Fabege's CEO, says. "The new residential property company will have a volume and a focus that put it in an even stronger position to successfully develop its residential portfolio. It is an excellent solution for all parties," Christian Hermelin adds.