NCC Property Development has concluded an agreement with Vital Forsikring ASA regarding the sale of the Kungsbron office project in central Stockholm. The project is being sold for approximately €96 million (SEK 971 million) and will have a positive impact of about €5 million (SEK 50 million).
The transaction will have a positive effect of approximately SEK 50 million on NCC's third-quarter earnings, after full provision for rental guarantees. The agreement also includes incentive aspects, which could affect the price and earnings positively, as leasing of the premises progresses. To date, no leases have been signed with tenants.
Kungsbron will be a completely new office block in which workplaces, stores and an abundance of parking spaces will be concentrated under the same roof. The project has a strategic location in the heart of central Stockholm, just north of Kungsbron, and is connected directly to Arlanda Express and Stockholm Central Station.
Kungsbron will activate and give life to a new part of Stockholm's commercial center and be part of a larger development in the form of office, hotel and retail space at Norra Bantorget in Stockholm.
Work on the project commenced on June 9, when construction of a parking garage under Östra Järnvägsgatan started. The parking garage has been sold to Stockholm Parkering. The second phase, with offices built above the garage and track area, will start in about a year's time.
"As a result of the project's location and the layout of the premises, considerable interest has been shown by property investors," says Peter Wågström, Head of NCC Property Development Sweden. "We have had several years of excellent cooperation with Vital in the Nordic region and have found an agreement model that is mutually beneficial."
Vital will pay the consideration and gain access to the property on completion in 2009.
Source: NCC
