Atrium Ljungberg has concluded an agreement today to sell the Torgvågen 7 property on Hötorget in central Stockholm, better known as the PUB department store. The purchaser is AxFast AB. PUB comprises a total of 16,800m² of letting area, half of which comprises retail and restaurant space and half, hotel facilities.
The sale has been effected by means of the disposal of shares, and the purchase price is based on a property value of SEK 980 million before deductions for deferred tax. The transaction will yield a profit after tax of ca. SEK 75 million within the Group and will be reported in the accounts for the third quarter of 2013.
Possession will be taken upon formation of a company – a process that is scheduled for completion during the first quarter of 2014.
“PUB has a long history within the company, a well-known brand, and a strong location adjacent to Stockholm’s biggest shopping strip. Operating and development PUB’s department store concept differs, however, from the way in which we work with our other retail hubs and offers few economies of scale for the rest of our operations. The sale of PUB will free up capital and resources for the ongoing development of our project portfolio and full-service environments,” comments Atrium Ljungberg’s Managing Director, Ingalill Berglund.
“The acquisition of PUB enables us to take another step towards the realisation of our long-term investment plan. We completed two major property acquisitions in central Stockholm last year and the acquisition of PUB is a continuation of our policy of acquiring individual, strategically important, commercial properties in carefully selected locations,” says Erik Lindvall, President & CEO of AxFast.
Nacka, 2nd July 2013
Atrium Ljungberg AB (publ.)