Tosito’s Acquisition of Building Rights in Karlastaden And Construction Agreement

Setterwalls has advised Serneke on the transaction.

Serneke announced the sale of approximately 15,000 square meters of building rights in Karlastaden to property company Tosito, mainly for housing development. The purchase price amounts to approximately SEK 200 million, corresponding to a building rights value of approximately SEK 13,000 per square meter. The sale is expected to have a positive impact on earnings of approximately SEK 80 million in the fourth quarter.

In connection with the transaction, Serneke and Tosito will also sign a construction agreement. The construction agreement comprises two suborders, the first commencing in the first quarter of 2021 and the second in the fourth quarter of 2021. The value of the agreements totals approximately SEK 300 million, with the order amounts to be included in the quarter in which the suborder is effectuated.

The plan is to construct some 180 homes on the property, both rental and tenant-owned apartments. These will be contained in two buildings, an eight-story staircase entry block and a 17-story highrise. The homes will be constructed in accordance with the Nordic Eco label certification. The ground floors will offer commercial premises.

Karlastaden comprises some 200,000 square meters of total buildings rights, divided into eight blocks. The building rights that are now being sold cover a total area of approximately 15,000 square meters, situated in the Capella block. Serneke has previously sold building rights in the same block to Hemsö. With Serneke as the turnkey contractor, premises for a school and other community functions are currently under construction there.

Serneke is a growing corporate group active in contracting and project development. Through novel thinking, the Company drives development and creates more effective and more innovative solutions for responsible construction. The Company builds and develops housing, commercial buildings, industrial facilities, public buildings, roads and civil engineering projects, and other infrastructure. The company’s customers consist of both public and commercial clients. The Company’s Swedish units operate nationwide and are organized into five regions: South, West, East, Central and North, and are headquartered in Gothenburg.

Tosito Invest AB provides real estate services. The Company offers residential, commercial, and industrial properties on rent and lease. Tosito Invest serves customers in Sweden.

The Setterwalls team included Anders Frick (Picture) and Bruno Neumann.

Involved fees earner: Anders Frick – Setterwalls; Bruno Neumann – Setterwalls;

Law Firms: Setterwalls;

Clients: Serneke;