Prisma Properties signs letter of intent regarding its largest development right in Kungens kurva
Segmentet 1, Kungens kurva
Prisma Properties signs letter of intent regarding its largest development right in Kungens kurva
Prisma Properties AB (Prisma) has signed a letter of intent with a major retail operator regarding the company’s largest development right in its portfolio, located in Kungens kurva in southern Stockholm. The letter of intent includes a long lease agreement under which the tenant intends to lease all commercial space, except for the portion currently leased to the existing tenant Yoump.
Prisma has a clear objective that all development rights in its portfolio shall generate cash flow before the end of 2028. The development right in Kungens kurva is the company’s largest and a key part of this strategy.
During the year, Prisma has already entered into several agreements with operators in the QSR segment linked to multiple development rights within the portfolio. With this letter of intent, Prisma takes a significant step towards realising its entire development rights portfolio.
Prisma acquired the development right Segmentet 1 during the first quarter of 2024. Since then, the company has actively worked to vacate the property, drive the zoning plan process, and plan and design the upcoming redevelopment and extension, which is expected to commence at the end of 2027.
The parties have initiated the process of formalising the letter of intent, with the ambition to enter into a binding lease agreement during the autumn of 2026. Construction is planned to begin after the zoning plan has gained legal force, which is expected to occur in the third quarter of 2027.
The planned lease will strengthen the company’s grocery retail exposure in the portfolio and extend its weighted average unexpired lease term (WAULT).
“Kungens kurva is our largest development right and one of the most strategically important assets in our portfolio. Taking this step towards a long lease with a strong operator strengthens our position and marks an important step towards our goal of having all development rights generate cash flow before the end of 2028”, says Fredrik Mässing, CEO of Prisma Properties.