Magnolia Bostad enters into framework agreement with Slättö

Wigge & Partners advised Magnolia Bostad in relation to a framework agreement with Slättö.

The co-operation includes that Slättö acquires residential projects from Magnolia Bostad with a value of at least SEK 5 billion, which may gradually be increased to SEK 14 billion. The project portfolio is concentrated to Stockholm, Uppsala and the Öresund region. The total project portfolio consists of 13 projects that include 450,000 sq.m habitable gross area, corresponding to about 7,000 apartments. While the cooperation is based primarily on the construction of rental units, the parties have the intention of developing approximately 25 percent of the apartments as tenant-owned units. Over half of the apartments are already in Magnolia Bostad’s existing portfolio and the remaining are not yet acquired potential building rights. This means that Magnolia Bostad now obtains a greater certainty of sales of the existing portfolio and secures takers on potential future projects. Magnolia Bostad will ensure that all the projects are developed as apartment buildings primarily intended for residential purposes. Considering the above, the parties have entered into the framework agreement to, as far as possible, determine the financial, legal and constructional conditions for the projects. The framework agreement is valid until March 31, 2020, with possibility of extension, and is conditional on Slättö obtaining financing.