KlaraBo has today signed an agreement to acquire the properties Halsinggarden 12:1 and 1:341 in Falun. These properties are purely residential, fitting well into KlaraBo’s business model of value-creating management. The acquisition includes 80 apartments, with an area of 5,800m2, and an underlying value of c. €7.1m, with 80% of the apartments estimated to have renovation potential. The rental value amounts to c. €620,000, and the acquisition is made through a newly established company.
Simultaneously, KlaraBo is divesting the properties Skraddaren 2 and Sigge 5 in Borlange. Both properties are commercial buildings, with the Police Authority and Borlange Municipality as the largest tenants. The properties are divested at an underlying property value of c. €10m, which is in line with the book value as of June 30, 2024. The annual rental value amounts to c. €1.2m, and the leasable area is approximately 7,000m2. Dios is acquiring the existing companies.
"These transactions are perfectly in line with KlaraBo's overarching goal of creating value by long-term ownership, development, and active management of popular residential properties in growth regions. With significant renovation potential, we can sustainably increase the standard of the properties while simultaneously creating increased cash flow and improved net operating income. It is also positive that the transaction market has gradually begun to open up again after a period of lower activity," said Andreas Morfiadakis, CEO of KlaraBo.
The transactions are conditional upon each other, with the provision that the Police Authority needs to approve the ownership change for the property Skraddaren 2. Closing and transfer are planned for September 2.
Image source - Pexels.
Europe Real Estate — an overview of real estate developments in European countries.
