NCC sells office project in Mölndal to Platzer
NCC has signed an agreement for Platzer to acquire NCC’s Mimo project in Mölndal on its completion, which is scheduled for 2024, in accordance with the option between the parties. The transaction is based on a property value of just over SEK 1.5 billion.
In June 2017, NCC announced that Platzer has an option to acquire the property in Mölndal in conjunction with its completion. Platzer has now decided to exercise this option and the parties have signed an agreement for the sale.
The transaction will take the form of a stock transfer agreement, based on an underlying property value of just over SEK 1.5 billion. Transfer of the building and payment of the purchase consideration will take place in conjunction with completion, which is scheduled for the fourth quarter of 2024, and will then generate a positive earnings effect in the NCC Property Development business area.
The Mimo project comprises approximately 40,000 square meters gross area, of which 32,000 square meters are lettable floor space. The project consists of an existing building to be refurbished and the construction of two new buildings comprising 18 and 11 stories, respectively, that will house both offices and services. Construction of the project will commence in the autumn, as previously announced by NCC.
“Both NCC and Platzer are strong players in Western Sweden and it is particularity gratifying to continue developing Mölndal city center – the potential of which we both recognize. Mimo is the last part of the detailed development plan for NCC’s development of Mölndal city, following Essity’s office and the Gallerian mall, and we are looking forward to passing on the baton for the continued development of the area to Platzer once the project has been completed,” says Joachim Holmberg, Business Area Manager, NCC Property Development.
The letting rate is currently just over 30 percent and tenants already include SATS and Mindpark. Transfer is conditional upon the letting rate.
“The rate of development in Mölndal city center combined with its location close to the station and the Mölndals bro transport hub mean that this acquisition of MIMO is entirely in line with our strategy of long-term ownership and development of commercial properties in prime locations. Our plan is to continue growing and to actively contribute to the development of Mölndal city center in the same manner as we do in other expansive hubs, such as Gamlestaden,” says P-G Persson, CEO of Platzer.
The building will receive a sustainability certification at the BREEAM Excellent level.
For further information, please contact:
Johanna Hult-Rentsch, Head of NCC Property Development West, +46 70 999 24 05
Tove Stål, Head of Group External Relations, NCC, +46 76 521 61 02
This is the type of information that NCC AB is obligated to disclose pursuant to the EU Market Abuse Regulation. The information was issued for publication through the agency of the contact person set out above on September 30, 2021 at 17.00 p.m. CEST.
About NCC. NCC is one of the leading construction companies in the Nordics. Based on its expertise in managing complex construction processes, NCC contributes to a positive impact of construction for its customers and society. Operations include commercial property development, building and infrastructure project contracting, and asphalt and stone materials production. In 2020, NCC had sales of about SEK 54 bn and 14,500 employees. NCC’s shares are listed on Nasdaq Stockholm.