4. MARCO CONCEPTUAL
4.4 PROMOCION Y PLANIFICACIÓN DEL DESARROLLO
Property portfolio
Transaction properties comprise a segment on which Hemfosa intends to focus. Hemfosa believes they offer great potential, particularly with respect to those found in insolvency portfolios and other complicated property structures.
The transaction operations provide proximity to the market, which is also beneficial to the Company in the development of the rest of the portfolio. Hemfosa is con- vinced that active participation in the transactions market will boost the Company’s offering to customers.
For example, major property acquisitions could be implemented and then developed to adapt to Hemfosa’s existing property portfolio and business strategy.
Active participation in the transactions market will generate opportunities for Hemfosa to conduct opportu- nistic business with the potential to increase yield. Know- ledge, experience and entrepreneurship in Hemfosa’s organisation will enable good risk assessment and strong implementation ability.
Figure 57 – Transactions properties distributed by geographic area as per 31 December 2013 number of properties Lettable area, ‘000 sqm ‘000 sqmVacancy, Rental value, MSEK Economic occupancy rate, % Rental income, MSEK Property value, MSEK Share of total property value % Stockholm 6 58 10 32 85 27 199 16 Gothenburg 10 56 5 40 94 37 328 27 Mälardalen 1 4 0 4 100 4 41 3 Skåne 5 19 12 12 43 5 61 5 Karlstad 1 7 1 9 85 8 114 9 Sundsvall – – – – – – – – Luleå – – – – – – – – Umeå 1 9 4 5 55 3 32 3 Other 18 89 15 64 87 56 446 37 Total 42 243 46 166 84 140 1,221 100
Figure 58 – Transactions properties distributed by property categories as per 31 December 2013 number of properties Lettable area, ‘000 sqm ‘000 sqmVacancy, Rental value, MSEK Economic occupancy rate, % Rental income, MSEK Property value, MSEK Share of total property value % Offices 8 52 10 45 88 40 320 26 Logistics, warehouse and industrial 16 133 31 72 77 55 475 39 Judicial 1 9 0 9 97 8 56 5 Education, health and care – – – – – – – – Retail 11 39 3 29 91 26 268 22 Other 6 10 2 12 89 10 102 8 Total 42 243 46 166 84 140 1,221 100
Property portfolio
VALUATIOn CERTIFICATE
The valuation certificate below pertaining to Hemfosa’s properties was issued by independent expert appraisers on behalf of Hemfosa. No material changes have occurred since the issuance of the valuation certificate.
The valuation certificate was prepared by Newsec Advise AB. Newsec Advice AB has agreed to the inclusion of the valuation certificate in the Prospectus. Information from third parties has been accurately reproduced in the Prospectus and no information has otherwise been omitted that could render the reproduced information inaccurate or misleading.
Certified property valuation
Assignment and client
On behalf of Hemfosa Fastigheter AB, through Jens Engwall, Newsec Advice AB has been commissioned to assess the market value of Hemfosa’s property portfolio. Altogether the assignment comprises the valuation of 195 objects. The measurement date is December 31, 2013. The valuation seeks to assess the properties market value, i.e. the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion.
Out of the 195 valuation objects, 130 were inspected during 2013. The remaining were inspected by Newsec during the period of 2011-2012.
Financial data
Information on the current lease conditions were mainly collected from the rent roll. Where the rents were assessed as deviating from market rates, the rents have been adjusted in conjunction with the expiration of the agreements. Depending on the extent, characteristics and locations of the valuation objects, the long-term vacancy and rent risk varies.
The operating and ongoing maintenance costs as well as provisions for periodic maintenance have been assessed with the aid of statistics, information from Hemfosa, contract details and
experience. The operating and ongoing maintenance costs are on average estimated to follow the rate of inflation during the costing period.
Value assessment
All market value assessments are based on analyses of objects sold in combination with knowledge of the operators’ view regarding the various types of objects as well as their reasoning and knowledge of market rental rates, etc.
The value of the properties has been assessed with the support of a market-adapted cash flow calculation, which analyzes market expectations of the valuation object through simulation of the estimated future income and costs (five years or longer). The yield requirements utilized in the calculation were derived from sales of comparable properties. Significant factors in the selection of profitability targets include the assessment of the object’s future rent trend, change in value, any possibilities to add value and the maintenance level as well as investment needs of the property. Final assessment
On the measurement date of December 31, 2013, the total market value of the properties, according to the value assessment presented in each property calculation, was assessed at
SEK16,394,000,000 (SEK 16,394 million).
Stockholm, January 31, 2014 Newsec Advice AB
Söderport Holding AB
Söderport is the largest of Hemfosa’s joint ventures. In 2010, Söderport was acquired by Hemfosa and Sagax, each of which owns 50 per cent of the company. The ownership of Söderport is regulated by a shareholder agreement that provides both of the owners with equal decisionmaking powers over Söderport, while the prop- erty management is taken care of by Sagax.
At 31 December 2013, Söderport owned 44 properties with a combined lettable area of 366,143 sqm and a rental value of MSEK 339. At this date, 93 per cent of Söderport’s lettable area was located in Stockholm, of which the main part comprised industrial and warehouse premises. At 31 December 2013, Söderport’s properties had a total market value, attributable to Hemfosa, of MSEK 1,475 and a economic occupancy rate of 85 per cent.
The business plan for Söderport is to focus on the letting of vacant premises in future.
HemfoSA kronfAStigHeter Holding AB
On 18 December 2013 Hemfosa, together with Crown Nordic Management, acquired a property portfolio consisting of 28 commercial properties. The acquisition was completed in a joint venture, where the parties own 50 per cent each. The ownership is regulated by a share- holder agreement that provides both of the owners with equal decisionmaking powers.
At December 2013, Hemfosa Kronfastigheter owned 28 properties with a combined lettable area of 142,382 sqm and a rental value of MSEK 151. At this date Hemfosa Kronfastigheter had a total market value, attributable to Hemfosa, of MSEK 643 and a economic occupancy rate of 82 per cent. The property portfolio is located in growth municipalities in southern and central Sweden and consist of both community services properties as well as office and logistic properties and is thereby a good fit with Hemfosa’s current property portfolio. The management and development of the property portfolio will be jointly handled by Hemfosa and Crown Nordic Management.
gäStgivAregAtAn Holding AB
Hemfosa owns half of the shares in Gästgivaregatan Holding AB and the remaining shares are owned by Skanska through the subsidiary Smebab Kommersiellt Holding AB. The ownership is regulated by a shareholder agreement that provides both of the owners with equal decisionmaking powers.
Gästgivaregatan Holding AB is a project development company whose purpose is to develop and refine the com- mercial property Kv Tellus 4 in Södertälje through the subsidiary Gästgivaregatan Fastighets AB. The property will undergo thorough renovation and improvement of the commercial premises, which have a total area of around 10,000 sqm. The project is scheduled to be completed at the beginning of 2015.
At 31 December 2013, Gästgivaregatan Holding AB owned one property located in Södertälje, with a total lettable area of 10,000 sqm and a rental value of MSEK 20. At 31 December 2013, Gästgivaregatan Holding AB had a total market value, attributabel to Hemfosa, of MSEK 82 and a economic occupancy rate of 80 per cent. Tenants include Åhléns, H&M and a number of small commercial and office tenants.
Culmen SträngnäS ii AB
Hemfosa owns half of the shares in Culmen Strängnäs II and the rest are owned by Culmen AB. The ownership of Culmen Strängnäs II is regulated by a shareholder agreement that provides both of the owners with equal decision making powers.
Culmen Strängnäs II is a project development com- pany whose purpose is to develop and refine properties. Culmen Strängnäs II currently develops and refines tenant-owned apartments and homes for the elderly in Strängnäs. In 2013 the first stage was finalised and included development and sale of 45 tenant-owned prop- erties. During 2013 the company has initiated stage two, which include 30 tenant-owned apartement. The second stage is scheduled to be completed in autumn 2014. A total of 80 per cent of the apartments have been pre- booked at a sales value of approximately MSEK 90.
In addition to this, the company owns a development right for homes comprising around 3,000 sqm BTA.