Kungsleden's property portfolio constitutes of commercial premises in Greater Stockholm, Greater Gothenburg, southwestern Sweden and the Mälar Valley within the categories Office, Industry/Warehouse and Retail.
Since we implemented a new strategy in 2013 we have worked to refine and optimize our property portfolio to our chosen growth markets and categories. For example, we have lowered our municipality presence from over 140 to approximately 30 today. Also, we have raised the quality level of our properties which is partly reflected in the increased portfolio value.
We have already achieved most of our refinement efforts set out in 2013, with focus now shifting to expansion of the portfolio based on the new strategy. Going forward our clusters will play an important role. By gathering our properties in clusters we can achieve a more efficient management process and present a more attractive customer offering. Today, 66 percent of our properties are located within one of our eleven clusters.
Learn more about our cluster strategy and Kungsleden's clusters here.
As of March 31, 2017 we owned 227 investment properties (excluding development properties) to a book value of SEK 27,816 million and with a leasable area of 2,297 sq.m.
Kungsleden is currently developing 30 properties, of which 18 are classified as development projects. These development properties include properties in which areas are held vacant or are planned to be vacated, short-term leased or demolished in order to allow for development. Five development properties (comprising of eight registration properties) are, as per 31 March, in the implementation stage with a total investment volume of SEK 975 million of which SEK 210 million is reprocessed.
The property portfolio's development
During the first quarter of 2017, 17 properties were divested to a total value of SEK 434 million. Following its vacated properties this means that Kungsleden has left the municipalities of Kumla, Filipstad, Sandviken, Arboga, Piteå and Sigtuna. Properties to a value of SEK 690 million were vacated during the quarter and the office property Emporia Office in Hyllie with a value of SEK 458 million, was accessed on 31 March. In the portfolio of investment properties, SEK 114 million of investments were made which generated changes in value of SEK 259 million. In development properties SEK 48 million was invested and increased values with SEK 106 million.
Percentage of properties belonging to a cluster
Property value by segment and region as per 31/3 2017