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 20 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, 72 per cent of value is in one of our twelve clusters.
Learn more about our cluster strategy and Kungsleden's clusters here.
As of September 30, 2019 we owned 207 properties (including property development and investment projects) to a book value of SEK 36 833 million. 87 per cent of our operations are concentrated on its four priority growth markets of Stockholm, Gothenburg, Malmö and Västerås.
Kungsleden has 12 properties classified as development properties. Eight projects are in the implementation stage.
The property portfolio's development
During the first quarter a third office property, in the Tändstickan quarter of Gothenburg, was accessed. These LEED Gold-certified properties are fully leased to reputable tenants.
We vacated our portfolio of retail and office properties in Eskilstuna at the beginning of January, which means we have fully exited this city. Retail properties now represent only 5 per cent of our total property value.
We now have eight major projects in the implementation phase. The Blique by Nobis Hotel in our property Blästern 14 opens in April, which completes the first phase of our largest development project in the area.
In Hyllie in Malmö we have Eden by Kungsleden which will be certified according to both LEED and WELL Building Standard. It is the first international building standard focusing on people's well-being in working life. Construction started in the third quarter of 2019.