Listed property corporation Kungsleden AB (publ) is acquiring a retail park north of Skellefteå, northern Sweden, scheduled to open in November 2005 with a total investment cost estimated at SEK 187 m. (approx. € 20,5 m) IBI Sverige AB, the Swedish subsidiary of Denmark’s IBI, is the vendor. IBI primarily pursues the development of retail real estate in the Nordic region.
Upon completion, lettable floor-space will be approximately 16,700 m², with tenants including major Nordic retailers such as ICA Maxi, Willys, Apoteket (the Swedish National Pharmacy Corporation) and Systembolaget, the state wine and spirit retail corporation.
The majority of contract terms are ten years. Construction is scheduled to start in September 2004, with completion in November 2005. The estimated property yield is 8.5%.
Kungsleden’s Chief Executive Jens Engwall commented: “IBI has undertaken several successful projects in Sweden, and we hope that our collaboration on this project will result in more deals.”