Stena’s property operations are managed by Stena Fastigheter in Sweden and by Stena Realty internationally. The total owned and managed portfolio comprises 2.4 million sqm, of which the majority is in Sweden. With tenancy as its form of tenure, Stena Property develops long-term, attractive residential environments and workplaces. Stena Property’s goal is to be the first choice of tenants.
Major focus on eliminating the housing shortage
Production of new properties is finally underway in Gothenburg, with construction having started in Kallebäck, Kvillered, Kobbegården and Sisjödal. In the first three areas, where we already have a portfolio, the projects comprise both rental and owner-occupied apartments. The mix develops the area and provides the opportunity for moving up the housing ladder. Rental apartments are being built in Sisjödal, where Stena Property won a land allocation agreement.
In Uppsala, the development of Kvarngärdet continues, while in Stockholm, construction continues in Vegastaden. In Stockholm, construction has also begun in Jakobsberg.
Stena Property divested seven properties with a total value of approximately MSEK 1,500 during the year. In Gothenburg, three commercial properties and one residential property were sold. In Stockholm, sales included Handenterminalen. In addition, an agreement was entered into with a related company to sell 4,900 apartments in Gothenburg, Stockholm and Uppsala with access in mid-2018. Also an agreement was entered into in December 2017 to sell a property in Malmö with access in February 2018.
ONE OF STOCKHOLM’S LARGEST HOTELS
After two years of construction, the hotel Downtown Camper has been opened in Stockholm. The hotel is operated by Scandic Hotels and is one of their signature hotels, which are mainly aimed at younger private customers. In the lobby, guests encounter a bicycle workshop, while kayaks hang in reception and can be used in Stockholm’s nearby waters. With 494 rooms, Downtown Camper is one of Stockholm’s largest hotels.
FALLING VACANCIES IN THE NETHERLANDS
The international property market is recovering, particularly in the Netherlands where Stena Realty has a significant portfolio. After a vacancy rate of up to 30 percent, Stena Realty has signed new contracts and managed to halve the vacancies. Stena Realty has also sold two properties in the Netherlands and one in Luxembourg for a total value of EUR 56 million. In France, the development of land bought last year in connection with the Sophia Antipolis portfolio continues, with construction due to begin in 2019. The properties in London are fully let, with renegotiated rents. Houston in the United States was affected by floods in 2017. Stena Realty’s properties came out of the situation well, but the market is still strained. The two new buildings are fully let on long leases, while the two older properties have a number of vacancies and short leases.
We are 25,000 homes.
CEO, Stena Property
We are in an exciting development phase in which we have evolved from a managing company into a key player in urban development. The focus is on the development of our unique relationship management (Relationsförvaltning®) approach and increased new production in our existing areas. From 2019, 1,000 apartments will be completed each year. With construction projects in Gothenburg and Stockholm, Stena Property helps to provide Sweden with housing. The major challenge is to find contractors who can build at the right cost in a hot economy. We will continue the process of digitalisation to offer tenants more attractive accommodation. At Pennygången in Gothenburg we have built a digitalisation lab in an apartment to develop the housing of tomorrow.