NCC Property Development has concluded an agreement with Credit Suisse Asset Management Immobilien Kapitalanlagegesellschaft mbH (CSAM) regarding the sale of the Västerport project. CSAM will pay a purchase price of approx. €66 million (SEK 658 million) and take possession of the property during the summer of 2008.
The project comprises approximately 20,000 m² of office space and will be sold in the form of a company. NCC Property Development is responsible for the development, implementation and leasing of Västerport, until the building has been completed. Fulfillment of the agreement is conditional upon approval of an amendment to the detailed development plan for part of the project. The agreement includes incentive components that could have a positive influence on the price as leasing progresses. The sale will initially generate a gain of about €3 million (SEK 30 million), which will be recognized when the terms and conditions for the transaction have been fulfilled. NCC has provided rental guarantees for a period of three years after the property has been completed, and a provision for this has been posted in full.
"The Västerport project has an excellent location in northwest Kungsholmen, close to a subway station and beside the Essingeleden Highway. We are experiencing considerable interest from companies looking for premises and are already engaged in several leasing discussions," says Magnus Widén, Regional Manager at NCC Property Development. "As a result of the major interest from investors, combined with a mutually advantageous contract model, we have decided to sell to Credit Suisse now."
Development of northwest Kungsholmen
Northwest Kungsholmen will be the largest growth area in Stockholm in the next ten years. Up to 4,000 new homes will be built and several thousand employees will have new workplaces in the area. In pace with completion of the homes and offices, more retail activities and various types of service amenities will establish themselves in the area.