The acquired property, Malmö Dimman 11, is located at Möllevången (Möllan) in the south eastern part of central Malmö. Möllan is a former factory area where several old buildings have been preserved. Over the last decade the area has undergone a large transformation and is now an attractive cultural and residential area with a broad cultural offering.
The property houses cultural, education and office operations where the premises are fully let with tenants such as the City of Malmö, Academedia and CDON. Extensive reconstruction and extension work is ongoing in the property, where the City of Malmö will establish city archives, offices, restaurant and a cinema and the expected occupancy date is 1 January 2015. Upon completion the property will have a total letting area of approximately 16,000 m2.
The acquisition will take place through a company transaction with an underlying property value of SEK 265 million. The seller is Profi I Fastigheter Sverige AB. Atrium Ljungberg is expected to take possession on 30 April 2014.
“The property has an exciting mix of operations and the location is good in a much frequented cultural area with great communications. In addition, it offers a stable cash flow in which the City of Malmö rents approximately half of the area with a 20 year lease. These new premises including a cinema will entail an uplift for the entire district where a former backstreet will be rejuvenated with new life,” comments Micael Averborg, Business Area Director, Transaction and Markets, Atrium Ljungberg.
Atrium Ljungberg has owned, developed and managed the city district Mobilia in Malmö where a large reconstruction and extension was completed during 2013. The project is Atrium Ljungberg's largest individual project of all time and has transformed Mobilia from a traditional retail centre to a city district where retail has been supplemented with restaurants, service and residences.
“Malmö is one of our prioritised markets where we aim to grow. Through this acquisition we are strengthening our position in Malmö and we look forward to participating in the long-term development of another exciting area in the city centre in collaboration with the City of Malmö and other actors,” concludes Micael Averborg, Business Area Director, Transaction and Markets, Atrium Ljungberg.
Nacka 18 March 2014
Atrium Ljungberg AB (publ
Facts about the property Malmö Dimman 11:
Year of construction: 1940, extended in 2014
Number of floors: 7 incl. 2 basement floors
Letting area: 15,706 m2
Letting rate: 100 %
Number of tenants: 8 incl. 1 office hotel
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