JM to develop housing and offices in Stockholm (SE)

JM and KF Fastigheter have agreed to jointly develop Kvarnholmen into a brand new neighborhood. The goal is to create building rights equivalent to about 2,100 residential units, as well as 90,000 m² for commercial premises and schools.

JM holds 50 percent of the building rights with the option to acquire an additional portion of KF Fastigheter's future building rights. The purchase price of approx. €35 million (SEK 350 million) will be paid when the deal closes in December 2006. If the results of the development project increase, JM will pay KF Fastigheter an additional purchase sum, which is estimated to be between approx. €5 million (SEK 50 million) and €15 million (SEK 150 million) at this time. The purchase price for what may be acquired under the options will be determined based on valuation with respect to each acquisition. Construction start is planned for 2009 with first occupancy expected in 2010. The entire area is expected to be ready in 2017.

The deal is subject to approval of the agreement by Nacka municipality with respect to the transfer of the detailed planning and development process to a jointly owned firm.

"Kvarnholmen is located along the bay Saltsjön, which offers a fabulous environment, right at the entry to the City of Stockholm opposite Djurgården. In other words, this deal is completely in line with JM's goal of developing modern housing in extremely attractive locations," says Johan Skoglund, President of JM.

Good communications are also planned for Kvarnholmen. The existing highway system will be developed; paths along the beach as well as walking and bike trails will be built. A new elevated bridge over Svindersviken is also being built to open up new routes for cars and public transportation and to facilitate communication between Kvarnholmen and Nacka.

Source: JM

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