Sjælsø Gruppen has concluded agreement with Property Group about the sale of a mixed-use project in Älvsjö, Stockholm, at DKK 475 million (approx. €59m). The project will be taken over by Property Group during the first half of 2008.
The agreement is a separate agreement in relation to the agreement entered into in June 2007 about Property Group's acquisition of a portfolio of retail projects from Sjælsø.
The project in Älvsjö is a combined office, storage and retail project, and Sjælsø's so far largest project in Sweden. The project comprises 37,000 m² and is primarily created by refurbishment and development of existing properties acquired by Sjælsø earlier this year.
Älvsjö is close to Stockholmmässan, which is one of the largest fair and conference centres in the Nordic region. The area is very well located in terms of traffic, and is presently in an exciting development phase with increased focus on retail. The property is fully let out to i.a. the IT company, TietoEnator, which occupies approx. 2/3 of the property. Apart from this, rental agreement has been concluded with one of Sweden's largest groceries.
With the acquisition of IBI, Sjælsø established a good foundation for project development in Sweden at the same time as Sjælsø Sweden (formerly IBI Sweden) was ensured access to financial resources which enable further growth in future.
The development of the project in Älvsjö has shown that Sjælsø, also in Sweden, has the professional competences and the financial strength to acquire and develop large projects within all types of properties, i.a. by acquiring and developing existing properties.
The agreement with Property Group supports Sjælsø Gruppen's formerly announced expectations of profit. Accordingly, profit before tax of DKK 800 to 900 million is still expected for 2007 as well as a high level of activities for 2008.