K-Fastigheter divests Gothenburg residential portfolio

Swedish company K-Fast Holding (K-Fastigheter) has finalized an agreement to sell a residential property portfolio in the Gothenburg area to an institutional investor.

Gothenburg residential

The portfolio comprises 681 apartments, both completed (264 units) and under construction (417 units). The deal is subject to certain conditions, including financing approval.
The handover will be phased: completed properties will be transferred on September 30, and properties under construction will be handed over upon completion, expected in Q2 2026, Q1 2026, and Q2 2027.
The transaction is valued at SEK 1.9 bn (€169 mln), with an expected net value of SEK 1.8 bn (€160 mln) after a 50% deduction for deferred tax. K-Fastigheter expects a net liquidity contribution of approximately SEK 592 mln (€52.7 mln) from the sale. These funds will be used to strengthen the balance sheet and facilitate new construction projects.
Jacob Karlsson, CEO of K-Fastigheter, commented: "I am very pleased with the transaction. The deal shows that our concept buildings are competitive in the market, and I look forward to handing over the properties under management on September 30 and the ongoing construction projects when they are completed."
The portfolio includes 17,234 m² of managed housing in Gothenburg, Ale, and Vänersborg, and 24,843 m² of housing under construction in Gothenburg and Ale.
K-Fastigheter will retain a 40% stake in a joint venture with the buyer to manage the property fund. The joint venture aims to expand its portfolio of residential properties in Swedish metropolitan areas.
The divestment will enable K-Fastigheter to focus on its construction business.