Fabege and ProfilHotels are jointly refurbishing and developing the Central Hotel on Vasagatan 38. The hotel is being renovated and expanded by approximately 600 sqm, and the former Restaurang Biffi will also be integrated into the hotel operation. The let space will total approximately 3,540 sqm. The new lease is for 15 years, with an annual rent of SEK 12.4m.

Fabege has also signed a 15-year lease agreement with the Tastsinn Group (which includes ProfilHotels) in the Skeppshandeln block, which is under construction in Hammarby Sjöstad. The agreement applies to the new construction of an extended-stay hotel. The sublet will cover approximately 1,400 sqm, with annual rent of SEK 3.4m. Occupancy is scheduled for the first half of 2014.

A nine-year lease agreement has also been signed by Fabege for the Ladugårdsgärde 1:48 property (former Ford plant) at Frihamnen. The annual rent will be SEK 12.9m and occupancy is scheduled for spring 2013.

“The Tastsinn Group is already a Fabege tenant and we have a great deal of confidence in this venture in a sought-after segment. It will be a key contribution to our development of the Hammarby Sjöstad city district,” comments Urban Sjölund, Director of Properties, Fabege.

“When OMX reduced its space in the Ford plant earlier this year, our wish was to rapidly attract a new tenant for the space. We have now succeeded and, with today’s lease, the property is once again fully let,” says Urban Sjölund.

Fabege AB (publ)