Atrium Ljungberg expands in a new market – acquires for SEK 900 million in Gothenburg
The acquired properties Lundbyvassen 4:7, Lundbyvassen 4:8 and Lundbyvassen 4:13 (also referred to as Citadellet, Tornen and M2) are located on Lindholmen, a city district undergoing development and with clear future visions.
The acquisition will take place through a corporate deal with an underlying property value of SEK 897 million. The agreement is conditional upon the reallotment of M2 entering into force and Gothenburg’s city council approving the transfer. The seller is Älvstranden Utveckling AB. The preliminary date of possession is 30 September 2015.
The properties amounts approximately 35,000 m2 total letting area and a garage with approximately 400 parking places. The letting rate is 85 per cent and the roughly twenty-five existing tenants include companies like Älvstranden Utvecklingen, Volvo, IBM, Valmet, Sykes and ESAB. The buildings mainly contain modern and flexible office premises with exciting details and unique qualities from the shipbuilding era.
“Gothenburg is an interesting market with large potential. Just like our other locations, here we want to develop long-term sustainable urban environments together with the municipality, tenants and other collaboration partners. The acquisition in Lindholmen is strategically important for us and now we have created a platform for further expansion in Gothenburg,” comments Ingalill Berglund, CEO of Atrium Ljungberg.
Älvstranden’s CEO Lena Andersson also emphasises the importance of Atrium Ljungberg’s overall view and development ambitions:
“It is particularly great that Atrium Ljungberg has chosen to invest in such a vital part of the Gothenburg market like Lindholmen. They are very competent property developers and will contribute to Lindholmen getting the right conditions for developing to an area which attains Vision Älvstaden’s highly set ambitions,” she says.
Lindholmen, a part of Vision Älvstaden, is located on Hisingssidan of Göta Älv river. The previous shipbuilding area has been transformed to a modern office area and knowledge base. Lindholmen Science Park and Chalmers, 350 companies specializing in the vehicle industry, ICT, media and technology and roughly thirty restaurants are located here. The city district is a work and study place for approximately 20,000 persons and has a well-developed infrastructure. During the year expansion of Lindholmshamnen will start, a development project which aims to make Lindholmen more urbanised by supplementing buildings in the area with approximately 450 apartments, a preschool and further business premises. Detailed development plan work will also start during the year for Karlavagnsplatsen which, among other things, will contain Gothenburg’s first real skyscraper.
“We want to contribute to the development of Lindholmen with a mix of different businesses which will support the vision of Lindholmen and Älvstranden. We will establish an office with a local organisation which can work closely with the tenants and find future development opportunities. In our work to get to know and understand the Gothenburg market, we have received professional support from the municipality and Business Region Göteborg. We have worked towards mutual trust which I hope will continue growing,” says Micael Averborg, Business Area Director at Atrium Ljungberg.
Annelie Hulthén, Mayor and Chairperson of the City Executive Board in Gothenburg welcomes that a new long-term property player is establishing itself in the city.
"It is good for Gothenburg and shows that we are very attractive to investors. As the city's development intensifies with Älvstaden and by us connecting the city over the river and increasing housing construction, opportunities to invest in Gothenburg will improve further," says Anneli Hulthén.
Nacka, 12/06/2015
Atrium Ljungberg AB (publ)
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