Retail property company Svenska Handelsfastigheter has agreed to buy the Bromma Blocks shopping centre in Stockholm, Sweden for SEK 1.173 billion (around €104 million).
The purchase consists of five properties, Trafikflyget 1, Trafikflyget 3, Trafikflyget 5, Trafikflyget 7 and Trafikflyget 9 with around 57,500 square meters of lettable space. The seller is CBRE Investment Management. Closing is expected to take place on 25 June 2024.
There are almost 70 tenants including Coop, City Gross, Elgiganten, XXL, Jula and Rusta. The acquisition means that Svenska Handelsfastigheter’s total retail area will exceed 1 million square meters. The mall has more than 2,000 parking spaces.
Bromma Blocks sales and rental income
Bromma Blocks total sales in 2023 was around SEK 2.1 billion. Total rental income was SEK 210.3 million with a net operating income of SEK 131.6 million. Further expansion is possible as there is potential to create building rights for an extra 50,000 square metres. The occupancy rate is around 91%.
Bromma Blocks is based in Bromma Airport’s former hangers. It is centrally located with a growing population base as several thousand new homes are planned in Bromma and Sundbyberg.
Thomas Holm, CEO of Svenska Handelsfastigheter, says, “We are really looking forward to taking over Bromma Blocks, which has an excellent location in an expanding neighbourhood. We strongly believe in Bromma Blocks as a well-established shopping venue for almost 20 years, in combination with Svenska Handelsfastigheter as a long-term player with strong owners. We see good opportunities to further develop the area based on our extensive experience in retail venues and discount stores.
“This investment is an important step in our long-term strategy to contribute to the city’s sustainable growth and create attractive, vibrant environments for both residents and visitors.”
The transaction is financed with external loans from Nordea and equity. The book value of the property was SEK 1,725 million on 31 December 2023. The deal includes the acquisition of seven companies and indirectly the leaseholds to the Trafikflyget properties.
The buyer’s legal advisor is Wigge & Partners. CBRE IM was advised by CBRE and Gernandt & Danielsson.
The image, from Wikipedia, is by Av Arild Vågen – Eget arbeten and is reproduced under CreativeCommons.
