K-Fastigheter to sell residential building in Sweden for €164m

Swedish real estate company K-Fastigheter has signed a non-binding agreement to sell a portfolio of 681 apartments in the Gothenburg area to an institutional investor. 

Gothenburg residential -  K-Fastigheter 

A preliminary agreement covers the sale of 264 existing units in Gothenburg, Ale, and Vänersborg (17,234 sqm) and 417 units currently under construction in Gothenburg and Ale (24,843 sqm). 
Due diligence is underway, and if a final agreement is reached, the existing apartments are expected to transfer ownership in Q3 2025.
The apartments still under construction are being sold via a forward sale agreement. This means the buyer will take ownership and pay for them after construction is finished, which is estimated to occur between Q2 2026 and Q2 2027.
The existing apartments generate an annual rental income of about SEK 39 mln (€3.5 mln), while the apartments being built are projected to generate SEK 72 mln (€6.5 mln) annually once completed.
The portfolio's total value is SEK 1.89 bn (€164.2 mln), roughly in line with its book value. K-Fastigheter expects to receive approximately SEK 592 mln (€53.8 mln) in net liquidity from the sale, spread over 2025-2027, which it plans to use for balance sheet strengthening and new construction projects.