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 December 31, 2017 we owned 222 investment properties (excluding development properties) to a book value of SEK 28, 922 million and with a leasable area of 2,159 sq.m.
At the end of the third quarter of 2017, Kungsleden had 30 properties under development, of which 18 properties were classified as development properties. As of September 30, seven projects are in the implementation stage. During the interim period, Kungsleden invested SEK 544 million in development and investment properties.
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.
Property value investment properties and cluster other as of 30/9-2017
Property value investment properties by category as of 30/9-2017