After making deductions for sales costs and deferred tax, the transaction results in a recognised gain of SEK  -36.8m before tax and SEK  91.5m after reversal of deferred tax. This will be recognised on the completion date. Payment will be made in cash on the completion date. The property will be taken over by the buyer in early March.

The property consists of an art nouveau building containing offices, a midwife clinic, shops and a restaurant facing Karlavägen, and a mixed-use property from the 1960s containing rental apartments, offices, a dance school and a car park facing Jungfrugatan and Sibyllegatan.

Ynglingen 10, which is a freehold ownership property, has a lettable area of 11,000 sqm, of which 2,400 sqm is residential. The property is almost fully let and is sold as is. It is certified to BREEAM-SE standard, Very Good.

The sale is part of Fabege's continuing strategy of focusing on selected expansive market areas such as City, Arenastaden, Solna Business Park, Hammarby Sjöstad and Flemingsberg.

Cushman & Wakefield and the Born law firm have been advisors to Fabege.

"The sale is a natural part of our business model. The property is located outside our strategic urban development areas and the transaction also further strengthens our balance sheet and provides financial scope for further investments and acquisitions," says Stefan Dahlbo, CEO of Fabege.

Fabege AB (publ)