Half-year Report
January-June 2024
Properties for the future.
Corem Property Group (publ)
Corem is a commercial real estate company with focus on sustainable ownership, management and refinement of real estate.
The properties are managed in-house and locally - giving proximity to the tenant, a long- term perspective, and high commitment. The portfolio is geographically well focused, located in metropolitan areas and growth regions.
Uppsala
Västerås
Örebro Stockholm Nyköping
Norrköping
Linköping
GothenburgBorås
New York
HalmstadKalmar
Copenhagen
295 | 56,101 | 2,317 |
Investment properties | Investment properties. | Lettable area, |
fair value, SEKm | tsq.m |
Malmö
Property value >SEK 7 bn Property value SEK 1-7 bn
Property value SEK 0-1 bn
PROFIT FROM PROPERTY
MANAGEMENT, SEKm
1,800 | ||||||||
1,500 | ||||||||
1,200 | ||||||||
900 | ||||||||
600 | ||||||||
300 | ||||||||
0 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 |
1Trailing 12 months | Q21 |
LOAN TO VALUE, %
70 | ||||||||
60 | ||||||||
50 | ||||||||
40 | ||||||||
30 | ||||||||
20 | ||||||||
10 | ||||||||
0 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 |
Q2 |
NET ASSET VALUE (NAV)
PER ORDINARY SHARE A/B, SEK
35 | ||||||||
30 | ||||||||
25 | ||||||||
20 | ||||||||
15 | ||||||||
10 | ||||||||
5 | ||||||||
0 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 |
Q2 |
LETTABLE AREA BY TYPE, %
Office 51%
Stock/Logistics 23%
Retail 10%
Other 16%
PROPERTY VALUE, SEKm
25,000 | ||||||||||||
20,000 | 40% | 11% | 11% | |||||||||
15,000 | ||||||||||||
Stockholm | Gothenburg* | New York | ||||||||||
10,000 | ||||||||||||
5,000 | ||||||||||||
0 | York | Uppsala | Malmö | Kalmar | ||||||||
Stockholm | ||||||||||||
New | Västerås** | Nyköping | Halmstad | |||||||||
Linköping | Norrköping | |||||||||||
Copenhagen | ||||||||||||
Gothenburg* | ||||||||||||
* incl. Borås | ** incl. Örebro |
2 | COREM - HALF-YEAR REPORT JANUARY-JUNE 2024 |
Januari-June 2024
- Income amounted to SEK 1,882 million (2,221)
- Operating surplus amounted to SEK 1,223 million (1,543)
- Net financial income amounted to SEK -622 million (-741)
- Profit from property management amounted to SEK 517 million (710)
- Changes in value of properties amounted to SEK -1 million (-1,406) during the quarter and to SEK -485(-2,911) during the period
- Changes in value of derivatives amounted to SEK -72 million (-95)
- Profit/loss for the period amounted to SEK 6 million (-2,729)
- Net letting amounted to SEK 87 million
- The value of investment properties amounted to SEK 56,101 million (58,033)
- Net asset value (NAV) per ordinary share of class A and B amounted as of 30 June to SEK 17.28 (17.57)
EVENTS DURING THE SECOND QUARTER
- During the quarter, 20 properties were divested for a total underlying property value of SEK 800 million.
- During the quarter, several leases were signed, including five leases in the properties 28&7 and 1245 Broadway in New York, and two leases in the property Majorna 219:7 in Gothenburg.
- Bonds with an outstanding amount of SEK 2,261 million were redeemed at maturity.
- Repurchase of bonds totaling SEK 1,036 million was made, mainly consisting of SEK 716 million in bond maturing in October 2024 and SEK 253 million in bond maturing in February 2025.
- Senior unsecured green bonds of SEK 500 million were issued under a framework of SEK 2,000 million, with a term of 2.75 years, carrying a variable interest rate of 3-month Stibor plus 375 basis points and maturity on 19 January 2027. Under the same framework, additional bond loans were issued totaling SEK 550 million.
- An increase of SEK 150 million was made in bonds maturing in May 2026.
517
Profit from property management, SEKm
4,342
Rental value,
SEKm
87
Net letting,
SEKm
17.28
Net asset value per
ordinary share of class A and B, SEK
2024 | 2023 | 2024 | 2023 | 2023/2024 | 2023 | |
Rolling | ||||||
3 months | 3 months | 6 months | 6 months | 12 months | 12 months | |
Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jul-Jun | Jan-Dec | |
Income, SEKm | 942 | 1,049 | 1,882 | 2,221 | 3,905 | 4,244 |
Net operating income, SEKm | 645 | 754 | 1,223 | 1,543 | 2,562 | 2,882 |
Profit from property management, SEKm | 302 | 354 | 517 | 710 | 1,046 | 1,239 |
Net profit/loss, SEKm | 164 | -1,818 | 6 | -2,729 | -5,264 | -7,999 |
Earnings per ordinary share of Class A and B, SEK | 0.02 | -1.81 | -0.25 | -2.75 | -5.38 | -7.88 |
Net asset value (NAV) per ordinary share of Class A | 17.28 | 22.95 | 17.28 | 22.95 | 17.28 | 17.57 |
and B, SEK | ||||||
Economic occupancy rate, % | 86 | 89 | 86 | 89 | 86 | 87 |
Operating margin, % | 68 | 72 | 65 | 69 | 66 | 68 |
Adjusted equity ratio, % | 42 | 40 | 42 | 40 | 42 | 41 |
Interest coverage ratio | 2.1 | 2.0 | 1.9 | 2.0 | 1.8 | 1.9 |
Loan-to-value ratio, % | 55 | 55 | 55 | 55 | 55 | 55 |
See page 23 and corem.se for definitions of key figures | ||||||
COREM - HALF-YEAR REPORT JANUARY-JUNE 2024 | 3 |
CEO COMMENT
Positive net letting and continued focus on a long-term strong balance sheet
When we sum up the first half of the year, we can take pride in the continued strength of our core operations in letting and property management with positive net letting of SEK 87 million. We have continued the work to strengthen our balance sheet. So far this year we have divested or agreed to divest a total of 33 properties and we will continue to further reduce the property portfolio during the year. We see that liquidity is increasing in the capital market and in May we were relieved to receive the announcement of the first interest rate cut.
The market that we operate on has been affected for a number of years now by the effects of a pandemic, a challenging geopolitical climate and a financial situation with increased interest rates and rising inflation. If we also take into account a bond market which for a period was more or less completely closed, we can quickly draw the conclusion that the business climate has been extremely chal- lenging. All real estate companies have struggled with depressed values and increased financial expenses and those with a high exposure to the bond market have had to divest parts of their port folios to deal with their maturities, including ourselves.
New Corem
Corem has navigated through these years with a clear sense of direction and therefore we are now a smaller company. We have shrunk our assets and our project commitments considerably. We give priority to tenant adaptation over major investments and even though around SEK 500 million remains to invest in our major ongoing projects, they contribute at the same time SEK 322 million in annual rental value.
We have sold over 220 properties during a two-and-a-half-year period and in this way almost halved our bond debt. During the first six months of 2024, a total of 33 properties were divested, or agreement was reached to divest, at an underlying property value of SEK
2.7 billion. Among other things, we divested our entire portfolio in Jönköping. This is a continuing process but it is nice to feel that it probably won't continue to get worse before it gets better.
Now we are again seeing inflation of a more controlled nature, with in the long run more favorable interest rates and a bond market that has opened up again. Even the yield requirements have now probably reached their peak level and the transaction market, which in Sweden never became completely inactive, has stabilized. Overall, this is of course incredibly positive and we can fully focus on our new, slightly smaller Corem, to take on the future.
Stable core operations
The rental market generally shows relatively good demand. We can forget about the post-pandemic concern that the heydays of offices was over. Attendance at offices is increasing even if there are expectations of continuing possibilities of hybrid work. Our tenants are, of course, also positively affected by our having passed the peak of interest rates, which is reflected in dialogue with new and
existing customers and in the number of enquiries about premises. Negotiation processes are still relatively long although the rental market is active, which is reflected in our letting statistics. Net letting amounted to SEK 37 million in the quarter and to SEK 87 million for the first half year.
To date this year, Corem has signed over 400 lease contracts at a value of approximately SEK 300 million. It is particularly gratifying that we have let around 3,500 square metres to the Swedish Coast Guard and around 1,500 square metres to Freemelt, at the property Majorna 219:7 in the Fiskhamn area of Gothenburg. This area is undergoing an exciting transformation from industrial and port activities to modern offices close to the city. We have also signed five new lease contracts in New York during the quarter corresponding to a total of approximately 2,350 square meters, including restaurant space at 1245 Broadway to JKS Restaurants and the other week a contract for 380 square metres at 28&7 to Garden Intelligence.
Total operating surplus has decreased given the changed composition of the portfolio although in a comparable portfolio, the operating surplus increased by 1 per cent and income by 4 per cent. Profit from property management amounted to SEK 517 million for the first half of the year. It´s held back compared to the previous year as a result of sales and higher market interest rates. The result for the period, i.e. the result after, for example, changes in value and tax, was again positive after approximately two years of significant negative changes in value and amounted to SEK 6 million for the first half of 2024.
Our key figures for both the operating margin and the economic occupancy rate have gradually slightly decreased after the divest- ments. But, bearing in mind the strong net letting we have reported to date this year and last year, we are confident that the opposite effect will gradually affect our key figures although some rentals will only take effect in 2025 and 2026. The occupancy rate in the second quarter amounted, as in the previous quarter, to 86 per cent and the operating margin to 65 per cent for the first half of the year.
Focus on strengthened balance sheet
As mentioned above, Corem has for a long period had a major focus on reducing debt and thus strengthening the balance sheet. We have achieved this both by amortization of bank debts as well as redeeming bonds. We have handled two large bond maturities totaling SEK 2.3 billion during the quarter, which were redeemed in their
4 | COREM - HALF-YEAR REPORT JANUARY-JUNE 2024 |
During the quarter, Corem signed a 15-year lease in the project property 1245 Broadway in New York with JKS Restaurants. JKS will contribute to the high level of service offered to the tenants of 1245 Broadway.
entirety and in addition we have made buybacks of almost SEK 1 billion in bonds that mature in October 2024 and in February 2025.
Since year-end, we have seen increasing liquidity in the capital market, which has led to shrinking credit margins. The prerequisites thus exist again for raising new loans in the bond market which is why we also issued new green bonds during the first half of the year of a total of SEK 2.3 billion..
We will continue to place a major focus on our financing and on reducing our loan-to-value ratio long-term. The interest-bearing debt amounted at the end of the second quarter to SEK 32.2 billion.
Optimized operations
We look forward with confidence to an improved business climate in which we can continue to optimize our operations and, after our
large divestments, focus again on increasing the occupancy rate and the operating margin. With the ongoing work of strengthening our balance sheet, we are also well equipped for current market prospects and for rapid changes in the market.
I would like to wish our employees, investors and tenants a very pleasant summer.
Rutger Arnhult
CEO
Stockholm, 12 July 2024
COREM - HALF-YEAR REPORT JANUARY-JUNE 2024 | 5 |
Income, expenses and profit
Income statement items are compared with the corresponding period last year. Balance sheet items refer to the position at the end of the period and are compared with the preceding year-end. The quarter refers to April-June and the period to January-June.
INCOME
Income amounted to SEK 942 million (1,049) during the second quarter and SEK 1,882 million (2,221) during the period January- June. Income was positively affected by index adjustment and negatively by divestments. In a comparable portfolio, income increased by 4 per cent during the period.
EXPENSES
Property costs amounted to SEK 297 million (295) during the quarter and SEK 659 million (678) during the period as a smaller portfolio following divestments resulted in lower costs. Property costs in a comparable portfolio increased by 9 per cent. Central administration expenses amounted to SEK 41 million (46) during the quarter and SEK 84 million (92) during the period.
CHANGES IN VALUE
Properties
Changes in value of Corem's investment properties amounted during the quarter to SEK -1 million (-1,406) during the quarter and -485 million (-2,911) during the period . Unrealized changes in value amounted to SEK 1 million (-1,389) during the quarter and realized changes in value to SEK -2 million (-17). For further information, refer to page 7.
Financial assets
Value changes of financial assets valued at fair value amounted to SEK 107 million (63) during the period and is mainly attributed to the holding in the housing company Klövern. For further information, refer to page 14.
Derivatives
Changes in value of derivatives amounted to SEK -72 million (-95) during the period. The value of the derivatives is affected by changes in market interest rates.
NET FINANCIAL ITEMS
Net financial income amounted to SEK -302 million (-354) during the quarter and SEK -622 million (-741) during the period. Financial income for the period amounted to SEK 4 million (8) and financial expenses to SEK 626 million (749). Reduced interest-bearing debt has contributed to an improved financial net despite a higher average market rate than the corresponding period of the previous year. At the end of the period, the group's average interest rate was
4.7 per cent (4.4 at year-end). Financial income includes site lease- hold fees and land fees of SEK 38 million (38). For further informa- tion, refer to page 13.
GOODWILL
During the period, impairment of goodwill amounted to SEK -151 million (-204). Impairment refers to goodwill attributable to deferred tax where impairment occurs due to negative unrealized value changes and divestments of properties.
TAXES
During the period, current tax amounted to SEK -27 million (-33). Deferred tax amounted to SEK 118 million (816), mainly attributable to dissolution of deferred tax in connection with divestment of properties and negative value changes in the property portfolio.
EARNINGS
Operating surplus amounted to SEK 645 million (754) during the quarter and SEK 1,223 million (1,543) during the period. The operating margin was 68 per cent (72) during the quarter and 65 per cent
-
during the period. In a comparable portfolio, operating surplus increased by 1 per cent during the period.
Profit from property management amounted to SEK 302 million
- during the quarter and SEK 517 million (710) during the period.
OTHER COMPREHENSIVE INCOME
Other comprehensive income during the period amounted to
SEK 211 million (373) and relates to translation differences in foreign operations.
INCOME, SEKm
5,000
4,000
3,000
2,000
1,000
0 2017 2018 2019 2020 2021 2022 2023 24Q21 1Trailing 12 months
PROFIT FROM PROPERTY MANAGMENT, SEKm
1,800 | ||||||||
1,500 | ||||||||
1,200 | ||||||||
900 | ||||||||
600 | ||||||||
300 | ||||||||
0 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 24Q21 |
1Trailing 12 months
6 | COREM - HALF-YEAR REPORT JANUARY-JUNE 2024 |
The property portfolio
PROPERTY VALUES
On 30 June 2024, Corem's property portfolio comprised 295 investment properties with a combined lettable area of 2,317,000 sq.m. and a market value of SEK 56,101 million.
CHANGES IN VALUE
Value changes in investment properties amounted during the period to SEK -485 million (-2,911), corresponding to -1 per cent. Unrealized value changes amounted to SEK -494 million and realized value changes to SEK 9 million.
The values of investment properties were adjusted during the second quarter negatively due to a slightly higher yield requirements and positively by net rental. Of the changes in value during the period, 91 per cent refers to properties in Sweden and 9 per cent to properties abroad.
As at 30 June 2024, the property portfolio was valued using an average assessed dividend yield requirement of 5.9 per cent (5.8 at year-end). Since the second quarter 2023, the property portfolio has been devalued by 9 per cent. In total, the value of the property portfolio has been adjusted down by 15 per cent since valuations peaked the first quarter 2022. Corem values all properties every quarter, of which 20 to 30 per cent are normally valued externally. As a rule, every property is valued by external valuers at least once annually, where exceptions may be made for individual properties. During the quarter, Cushman & Wakefield, Newsec and Savills have been used as valuation agencies. As support for the internal valuation, Corem obtains continuous market information from external valuation agencies. For a sensitivity analysis and a description of the valuation principles, refer to Corem's annual report for 2023.
PROPERTY TRANSACTIONS
During the period January-June, 31 properties were divested at an underlying property value of SEK 2.5 billion. The profit effect, including dissolved tax and impairment of goodwill attributable to deferred tax amounted to SEK 174 million during the period. Reported realized change in value amounted to SEK 9 million and includes transaction costs and such deferred tax deductions that were part of the deals.
During the quarter, 20 properties were divested. Among other things, the entire portfolio of 16 properties in Jönköping was divested and Corem is thus leaving Jönköping.
See all vacations on page 8.
Transactions after the end of the period
Agreements for divestments with hand-over after the end of the period have been signed for two properties, a warehouse and logistics property in Gothenburg and an office property in Västerås, for a combined underlying value of SEK 158 million.
TENANTS AND THE LEASE PORTFOLIO
On 30 June 2024, Corem had approximately 3,100 tenants with approximately 5,500 lease contracts. The annual contract value amounted to SEK 3,713 million (3,740), the rental value amounted to SEK 4,342 million (4,322) and the economic occupancy rate to 86 per cent (87). In all, the average remaining contract period was 3.3 years (3.4). 45 per cent of the contracted rent expires in 2027 or later.
Net letting
Net letting amounted to SEK 37 million (17) during the quarter and SEK 87 million (50) during the period. Of these, SEK 35 million derives from new production projects and SEK 52 million from investment activities. In all, lettings and renegotiations amounted to SEK 300 million during the period, 61 per cent of this was for new customers and the remainder for existing tenants.
Lettings in selection
A number of major contracts were signed during the year.
At the project property 1245 Broadway in New York a 15-year lease was signed with JKS Restaurants for 734 sq.m. with moving-in planned 2025. At the project property 28&7 in New York four separate lease contracts were signed, among others a five-year lease was signed with Ellipsis Labs for 807 sq.m. with moving-in for the first quarter of 2025, and a three-year lease was signed with Garden Intelligence for 380 sq.m. with moving-in the third quarter of 2024.
At the property Majorna 219:7 in Gothenburg, a five-year lease was signed with Freemelt for approximately 1,500 sq.m. with moving-in the fourth quarter of 2024, and a six-year lease with the Swedish Coast Guard for approximately 3,500 sq.m. with moving-in the second quarter of 2026.
At yhe property Idétävlingen 4 in Linköping, a six-year lease was signed with the Swedish Police Authority for approximately 4,600 sq.m. with moving-in the third quarter of 2024.
NET LETTING, SEKm
150 | 150 | |||
125 | 125 | |||
100 | 100 | |||
75 | 75 | |||
50 | 50 | |||
25 | 25 | |||
0 | 0 | |||
-25 | -25 | |||
-50 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -50 | ||||
2020 | 2021 | 2022 | 2023 | 2024 |
Quarter | Trailing 12 months |
CONTRACT STRUCTURE, SEKm | |||||
1,200 | |||||
1,000 | |||||
800 | |||||
600 | |||||
400 | |||||
200 | |||||
0 | 2024 | 2025 | 2026 | 2027 | 2028- |
COREM - HALF-YEAR REPORT JANUARY-JUNE 2024 | 7 |
INVESTMENT PROPERTIES: NUMBER, LETTABLE AREA, FAIR VALUE
Jan-Jun 2024 | 2023 | ||||
No. | Sq.m. | SEKm | SEKm | ||
Total at the start of the year | 326 | 2,428,426 | 58,033 | 78,387 | |
Acquisitions | - | - | - | - | |
Investments in construction, extensions and refurbishment | - | 4,840 | 645 | 1,993 | |
Divestments | -31 | -116,240 | -2,417 | -14,010 | |
Changes in value, unrealised | - | - | -494 | -8,306 | |
Currency conversion | - | - | 334 | -31 | |
Total at the end of the period | 295 | 2,317,026 | 56,101 | 58,033 |
PROPERTY TRANSACTIONS, TRANSFER OF POSSESSION JANUARY - JUNE 2024
Lettable area, sq.m. | ||||||
Quarter | Property | City | Municipality | Property category | Acquisition | Divestment |
Q1 | Orgelpipan 4 | Stockholm | Stockholm | Office | - | 4,244 |
Q1 | Pottegården 2 | Gothenburg | Mölndal | Warehouse/logistics | - | 1,800 |
Q1 | Pottegården 4 | Gothenburg | Mölndal | Office | - | 4,930 |
Q1 | Smörbollen 12 | Malmö | Malmö | Warehouse/logistics | - | 3,757 |
Q1 | Backa 25:1 | Gothenburg | Gothenburg | Office | - | 4,042 |
Q1 | Nackremmen 1 | Malmö | Malmö | Warehouse/logistics | - | 1,743 |
Q1 | Nackremmen 2 | Malmö | Malmö | Warehouse/logistics | - | 2,413 |
Q1 | Nosgrimman 1 | Malmö | Malmö | Warehouse/logistics | - | 1,828 |
Q1 | 26er, 26fg, 26fi Frederiksberg | Copenhagen | Copenhagen | Education/health care/other | - | 19,300 |
Q1 | Stensborg 2 | Västerås | Västerås | Office | - | 872 |
Q1 | Bogserbåten 1 | Västerås | Västerås | Land | - | - |
Q2 | Ellipsen 5 | Stockholm | Stockholm | Office | - | 2,820 |
Q2 | Budkaveln 18 | Huskvarna | Jönköping | Warehouse/logistics | - | 8,381 |
Q2 | Öskaret 16 | Jönköping | Jönköping | Warehouse/logistics | - | 8,545 |
Q2 | Flahult 21:36 | Jönköping | Jönköping | Warehouse/logistics | - | 12,878 |
Q2 | Ädelmetallen 14 | Jönköping | Jönköping | Office | - | 2,558 |
Q2 | Ädelmetallen 4 | Jönköping | Jönköping | Warehouse/logistics | - | 4,394 |
Q2 | Ädelkorallen 1 | Jönköping | Jönköping | Warehouse/logistics | - | 1,350 |
Q2 | Ädelkorallen 10 | Jönköping | Jönköping | Warehouse/logistics | - | 435 |
Q2 | Ädelkorallen 17 | Jönköping | Jönköping | Office | - | 2,144 |
Q2 | Ädelmetallen 12 | Jönköping | Jönköping | Warehouse/logistics | - | 2,004 |
Q2 | Ädelmetallen 5 | Jönköping | Jönköping | Warehouse/logistics | - | 5,167 |
Q2 | Äreporten 3 | Jönköping | Jönköping | Office | - | 1,302 |
Q2 | Öronlappen 7 | Jönköping | Jönköping | Retail | - | 3,248 |
Q2 | Öronlappen 8 | Jönköping | Jönköping | Education/health care/other | - | 2,234 |
Q2 | Öronskyddet 9 | Jönköping | Jönköping | Warehouse/logistics | - | 1,683 |
Q2 | Överlappen 15 | Jönköping | Jönköping | Warehouse/logistics | - | 1,954 |
Q2 | Överlappen 8 | Jönköping | Jönköping | Warehouse/logistics | - | 1,726 |
Q2 | Magneten 2 | Linköping | Linköping | Warehouse/logistics | - | 2,857 |
Q2 | Megafonen 4 | Linköping | Linköping | Warehouse/logistics | - | 3,372 |
Q2 | Matrosen 1 | Kalmar | Kalmar | Office | - | 2,259 |
Total | - | 116,240 |
8 | COREM - HALF-YEAR REPORT JANUARY-JUNE 2024 |
Globen Shopping has got several new stores. Normal and Lekia opened in the second quarter and Zooett will open during the third quarter. At the same time, the jewelry store Guldfynd has expanded its store premises.
COREM - HALF-YEAR REPORT JANUARY-JUNE 2024 | 9 |
PROJECT DEVELOPMENT
Corem's project development takes place mainly in connection with new lettings and to adapt and modernize premises, thereby increasing the rental value.
During the period, SEK 645 million (1,094) was invested in the property portfolio for new construction, extensions and refurbishments. As at 30 June 2024, the remaining investment volume amounted to SEK 954 million (1,341). At that time, there were altogether three ongoing projects with an estimated investment exceeding SEK 50 million each. The total area-based occupancy rate in the projects amounts to 63 per cent. The projects combined area comprises 29,601 square metres and a remaining investment of SEK 505 million.
The housing project K1 Nacka Strand was completed at the turn of the year. The project, which was completed and handed over to a building cooperative during the quarter, consisted of new production of a total of 60 apartments with a total livable area of 3,700 sq.m., where 56 of the apartments were sold as at 30 June.
Commercial projects in Sweden
In Örebro, phase 2, the last phase of Örebro Entré, consisting of refurbishment and extension of a total of approximately 10,200 sq.m. of a former postal sorting office, was completed during the quarter. The Swedish Transport Agency moved in during 2023 and the County Administrative Board moved in during the second quarter of 2024.
In Nyköping, a school is being constructed for AcadeMedia. The school is being built at the same place close to the centre where the previous school burnt down. Moving-in is expected to take place in the fourth quarter of 2024.
Commercial projects in New York
Corem owns three project properties in Manhattan in New York: 28&7, 1245 Broadway and 417 Park Avenue.
The projects, 28&7 and 1245 Broadway, both new construction of high-quality office buildings, are nearing completion. In both projects, the exterior has now been completed and interior tenant adaptation is underway apace with tenants moving in. As at 30 June 2024, 20 lease agreements have been signed, which corresponds to an area occupancy rate of 64 per cent at 28&7 and 57 per cent at 1245 Broad- way, regarding signed rental contracts. The contract value of the leases amounted on 30 June 2024 to USD 17.0 million, corresponding to approximately SEK 180 million, which is equivalent to approximately SEK 11,000 per sq.m.
The property 1245 Broadway has a land lease agreement, right- of-use assets and leasing liabilities are recorded in the balance sheet. The development property 417 Park Avenue has a building right for the new construction of offices of around 33,000 sq.m. Preliminary planning is underway and construction is planned to start by 2025 at
the earliest.
COREM'S LARGEST ONGOING COMMERCIAL PROJECTS
Let area, | Project | Estimated | Remaining | Rental | Completion, | |||
City | Property | Description | area, | investment, | investment, | value, | ||
sq.m. | sq.m. | SEKm | SEKm | SEKm | year/quarter | |||
New York | 1245 Broadway1 | New construction, office premises | 9,945 | 17,575 | 1,933 | 341 | 218 | 25Q1 |
New York | 28&71 | New construction, office premises | 5,957 | 9,291 | 1,005 | 139 | 96 | 25Q1 |
Nyköping | Furan 2 | Construction of school | 2,735 | 2,735 | 77 | 25 | 8 | 24Q4 |
TOTAL | 18,637 | 29,601 | 3,015 | 505 | 322 |
1) Estimated and remaining investment of projects in New York is based on the SEK/USD exchange rate on 30 June 2024.
Nattskiftet 12 and 14, Stockholm
During the year, Nattskiftet 12, a new parking garage with four floors, and Nattskiftet 14, where building and installations as well as office premises were modernized.
10 | COREM - HALF-YEAR REPORT JANUARY-JUNE 2024 |
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Corem Property Group AB published this content on 12 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 July 2024 06:04:24 UTC.