Areim picks up Stockholm landmark for €336m

Nordic real estate owner and fund manager Areim has acquired Stockholm landmark the Newspaper Building from Fabege for SEK 3,545 mln (€336 mln).

Located at Trängkåren 7, Marieberg, the tower has a total lettable area of just over 77,000 m2, of which 56,500 m2 comprises office space and the remainder parking. The building, also known as the Dagens Nyheter Tower, is almost fully leased and is home to companies such as Bonnier News, including the publications Dagens Nyheter, Dagens Industri and Expressen’s editorial staff and offices.

There are also numerous other office tenants, a public canteen, storage facilities, gym/swimming pool and parking. The property is certified in accordance with Breeam In-Use, Very Good.

'Trängkåren has added considerable value to Fabege during the period of ownership, but the potential forward is limited for us. In the short term, the transaction will boost our balance sheet and KPIs. In the longer term, it allows scope for future planned and value creating project development in our prioritised areas,' said Stefan Dahlbo, Fabege’s CEO.

The property has been owned by Fabege since 2007, when it was acquired from Niam. The Bonnier Group was the main tenant at that time. Since then, the building has been the subject of long-term, value creating development, and its value has more than doubled, according to Fabege.

Fabege said that the property constitutes an 'outlier' in its portfolio, as it is located outside the firm's prioritised submarkets. Areim, which owns the neighbouring property Swecohuset, was the 'obvious' buyer, Fabege noted, as the two adjacent properties would benefit from 'synergies' for further development.

Fabege said that the deal was being completed as a corporate sale with an underlying property value of SEK 3,545 mln after deductions for deferred tax. Transfer of ownership will occur on 23 January 2020. Overall, the deal represents a profit of SEK 395 mln after tax.

In addition, work is currently underway at the property on the preparation of a new local development plan. Fabege will be entitled to an additional consideration when the local development plan gains legal force, which could be worth as much as SEK 100 mln.

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