SBB divest Detention Facility Project in Västerås

Samhällsbyggnadsbolaget i Norden AB (“SBB”) and K2A have through their joint ventures sold the property Ångpannan 12 in Västerås to Intea. The sale includes the project regarding a new correctional facility, Kriminalvårdens Hus, which is being developed with the Swedish Prison and Probation Service (Kriminalvården) as tenant. The transaction is based on an underlying property value of SEK 620 million, and SBB’s share of the transaction will release approximately SEK 345 million in cash.

Through a joint venture, SBB and K2A entered into a lease agreement with the Swedish Prison and Probation Service in 2022 regarding a planned detention facility in central Västerås. This lease agreement has now been supplemented with an additional lease agreement and runs for 20 years from completion. The annual rental value is based on project costs and is currently estimated at SEK 225 million. The total preliminary lettable area amounts to 34,600 square meters and includes 160 detention rooms as well as spaces for probation, education, the national transport unit, administration, staff facilities, and a garage. The properties in the transaction comprise almost 17,500 square meters of land.

“With this transaction, SBB demonstrates the strong expertise the company possesses when it comes to property development. The project has evolved from an existing 4,500 sqm building into a modern legal center of 34,600 sqm and included most elements of development such as zoning planning, design, lease negotiations, contracting, and sales. We have previously communicated that our development business will have a clearer focus in the future and this transaction confirms that strategy,” says Krister Karlsson, COO and Deputy CEO of SBB.