Bonava has formed a partnership with OBOS Nya Hem to jointly develop the Explora block in Sodra Anggarden, Gothenburg. The partnership will involve the transfer by Bonava of 200 building rights to a joint venture, for which it will receive a payment of c. €5.8m during the third quarter.
“We are delighted to have established a structure for a long-term collaboration with OBOS Nya Hem. Together we can leverage our combined expertise and be a leading player in the development of this exciting city district. We also hope this will lead to new, similar partnerships in the future. This also means that Bonava can free up capital to enable more project starts,” said Carmith Martensson, Regional Manager Riks, Bonava Sweden.
Sodra Anggarden is a sustainable and urban city district undergoing rapid development just outside Gothenburg city centre. The former industrial site in Hogsbo is being transformed into an urban environment featuring housing, retail, cafés, restaurants and a new school and preschool. Approximately 1,900 housing units are planned in total and several leading players are involved in the development.
The partnership will involve the transfer by Bonava of 200 building rights to a joint venture in which OBOS will acquire 50% of the shares. The market value of the assets is c. €11.6m, and the purchase consideration amounts to c. €5.8m. The effect on earnings including impairment amounts to c. €5.3m, which will be recognised in the third quarter of 2024. Following the transaction, Bonava will still possess a further 400 building rights in Sodra Anggarden.
Bonava recently received a building permit for the Explora neighbourhood, enabling the construction of approximately 200 apartments of varying sizes. The plans for the neighbourhood include a green inner courtyard, roof terrace, shared premises with overnight accommodation, bicycle storage and garage spaces. The start of production is scheduled for 2025.
Image source - Cision.
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