Nordika divests central property in Jönköping
Nordika divests Domherren 23 to the local property developer Tosito AB. Nordika acquired the property from SAAB AB in August 2014 when SAAB decided to co-locate its operation in Huskvarna. During the hold period Nordika has pursued a change of the zoning plan to allow for conversion of the property from industrial use to residential, office and retail.
Nordika acquired the property Domherren 23 in central Jönköping from SAAB in August 2014 in a sale and leaseback transaction. SAAB pre-rented the property during 3 year while the construction of the new co-location property in Huskvarna was completed.
During that period Nordika worked with developing a new more flexible zoning plan to give the property the best possible condition to prosper after SAAB left the property. The process was held in close corporation with Jönköping municipality to ensure the best possibilities and flexibility for the property. The new zoning plan went into force in April 2018 and allows the property to be used as residence, office, retail or hotel. In total, the zoning plan comprise 27 000 BTA sq.m building rights.
In an early phase Nordika split the property in two and divested SAABs earlier parking lot to the local property developer Tosito AB. The sale was subject to a new zoning plan of 10 000 BTA residential building rights. The two parts of the transaction continued a dialog regarding the reminding part of the property. In co-operation the parties developed a proposition to a large public welfare actor that will pre-rent the remaining premises on a long contract. Tosito will continue with the conversion and intends to be a long term owner of the property when the tenants moves in.
In the acquisition of the property from SAAB, Nordika structured the transaction so that the environmental decontamination required for conversion was to be performed during the hold period, such a solution was essential in the transaction to allow a functioning development of the real estate.
Jonas Grandér, CEO Nordika comments:
The acquired property was in a less attractive area with known large future vacancies and a confirmed environmental problem. Through active development in close corporation with the municipality targeting a flexible solution we have now stabilized the property. To be an active part in developing the society is something that gets us going and we relish. We are happy to hand over the ownership of the property to Tosito, a company we know to be a very professional and forward leaning
