Samhallsbyggnadsbolaget i Norden AB (SBB) and K2A have entered into an agreement to divest the properties part of Angpannan 10, Angpannan 12 and part of Vasteras 1:202 in Vasteras to Intea with an estimated exit during the second quarter of 2025. The sale relates to the new Kriminalvardens hus that is under construction for the Prison and Probation Service.
The lettable area after completion is estimated to amount to 34,600m2. The transaction is based on an underlying property value of c. €55.2m and SBB's share of the transaction is expected to release approximately c. €26.7m in cash and cash equivalents at the time of closing before deduction of transaction costs. The transaction is made in the form of a company and is subject to, among other things, customary regulatory approvals.
Through a JV company, SBB and K2A entered into a lease agreement with the Swedish Prison and Probation Service in 2022 to develop a remand prison in central Vasteras. This lease has now been supplemented with an additional lease and runs for 20 years from completion. The annual rental value is based on the costs incurred in the project and is currently estimated at c. €19.6m. The total preliminary lettable area amounts to 34,600m2 and includes 160 remand prison rooms as well as premises for probation, education, the national transport unit, administration, staff facilities and a garage. This project and the associated properties part of Angpannan 10 and 12 and part of the property Vasteras 1:202 are included in the acquisition. The properties comprise just under 17,500m2 of land area.
"In 2017, SBB acquired a property with a building built in 1949 containing approximately 4,500m2 of premises, and since the acquisition we have worked actively to develop the property together with the City of Vasteras and later also with K2A through a joint venture company, the result of which is the new Prison and Probation Service building with 34,600m2 of premises. Kriminalvårdens Hus is a very good example of how value is created through active property development. The sale is in line with SBB's stated strategy of reducing JV holdings and we are pleased to have Intea as a buyer with extensive experience in owning and managing similar properties," said Krister Karlsson, Deputy CEO of SBB.
Image source - Pexels.
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