NCC divests office project in Gothenburg for €43 million (SE)

NCC Property Development is selling the Nordstaden (formerly Hasselblad) office project in Gothenburg to Credit Suisse Asset Management Immobilien Kapitalanlagegesellschaft mbH (CSAM) for approximately €43 million (SEK 433 million). The transaction will have a favorable impact of approximately €40 million (SEK 40 million) on the NCC Group's fourth-quarter earnings.

NCC Property Development has concluded an agreement with CSAM regarding the sale of the Nordstaden project. The purchase price is SEK 433 million and CSAM will pay for the property and take possession in May 2008.

The NCC Group's fourth-quarter earnings will be positively affected by approximately SEK 40 million following complete provision for rental guarantees, corresponding to three years rent. Included in the contract is an incentive that could have a positive influence on the price and earnings as leasing progresses.

The project comprises one building of approximately 13,000 m². NCC Property Development is responsible for development, implementation and leasing of Nordstaden, until the building has been completed.

"Nordstaden is attractively located on Södra Älvstranden at Lilla Bommen and interest from companies looking for premises has been considerable. We have several ongoing discussions and the first leases have been signed with Settervalls Advokatbyrå and Carnegie Investment Bank," says Joachim Hallengren, Regional Manager for NCC Property Development, West.

NCC has chosen to sell the office-building project Nordstaden at an early stage since interest from property investors was considerable and, jointly with CSAM, NCC was able to find a mutually advantageous contract model.

Development of Lilla Bommen
Changes in the area around Lilla Bommen will result in Gothenburg's city center being shifted down towards the water. The Nordstaden property will then be located in the center of the city and will have one of Gothenburg's best locations, adjacent to Gothenburg Opera.

The open area in front of the property, Sankt Eriks Torg, is planned as the extended starting point of Avenyn, with Götaplatsen as the end.

Source: NCC

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