Atrium Ljungberg has signed a pivotal ten-year unsecured financing agreement of €79.5 m with the Nordic Investment Bank (NIB) to fund the renovation and redevelopment of the iconic Söderhallarna food hall and workspace at Medborgarplatsen, Södermalm, Stockholm.
The transformation of the 26,000 m² landmark, originally opened in 1992 and celebrated for its architectural and cultural heritage, will see the food market remain on the ground floor, with office and coworking spaces above. One of the first tenants will be Ramboll, occupying approximately 5,000 m² as its new Swedish headquarters for around 600 employees.
Work began in spring 2024 and is due to complete in early 2027. The renovation aims to halve the building's energy consumption and carbon intensity, while preserving its historic fabric through careful reuse of original materials, creating a compelling blend of heritage and sustainability that aligns with rising investor demand for green, retrofit-driven urban redevelopment.
“The new unsecured bank loan of SEK 860m from the Nordic Investment Bank is unique for Atrium Ljungberg in two respects: it represents the loan with the longest tenor that Atrium Ljungberg has ever entered into with NIB and it is also the first loan specifically intended to finance a renovation project,” said Heiko Bechtel, Head of Treasury at Atrium Ljungberg.
“NIB has a strong climate focus and places high sustainability requirements on the projects it finances. We are therefore proud … that our renovation projects also meet very high sustainability standards,” added Anna Jepson, CFO at Atrium Ljungberg.
Investor insights: With limited new-build stock in Stockholm’s central districts and growing focus on ESG and retrofit financing, this project exemplifies current investor appetite. Developers and capital partners should note the appeal and funding potential of sustainable renovation projects in urban heritage environments.
People mentioned:
Heiko Bechtel – Head of Treasury, Atrium Ljungberg
Anna Jepson – CFO, Atrium Ljungberg
Companies mentioned:
Atrium Ljungberg – Stockholm-based owner, developer and manager of retail and office assets
Nordic Investment Bank (NIB) – Multilateral bank financing sustainable projects in the Nordic–Baltic region
Ramboll – One of the first tenants, an architecture and engineering consultancy
Image Source: https://www.soderhallarna.se/
Get the latest real estate news and investment insights from Europe Real Estate - your trusted source since 1999. To receive daily or weekly updates. Sign up here!
