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Volvo planning to sell real estate to raise billions


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Dagens Industri  /  October 18, 2016

AB Volvo is about to sell off a property portfolio worth three billion kronor in Gothenburg, Sweden.

It would be one of the largest property deals ever in Gothenburg.

The three properties, totaling 250.00 square meters in size, are located in the Torslanda, Save and Arnedal districts of Gothenburg.

The real estate deal is expected to be announced shortly.

Joakim Kendall, the acting head of the Volvo Group's media relations, refused to comment.

It’s unclear which Volvo properties are for sale.

In Torslanda, Volvo Group has its headquarters.

At Landvetter airport in Save, Volvo owns an airplane hanger that houses its corporate aircraft and office. The airport is already in liquidation. Serneke Construction Group has acquired most of the property.

The head office and R&D unit for Volvo Bus, as well as the Volvo Bus Experience Center, are located in Arnedal.

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Volvo divests properties in Gothenburg

Volvo Group Press Release  /  October 21, 2016

Volvo Group has signed an agreement with the real estate company Platzer Fastigheter Holding AB regarding the sale of properties in the areas of Arendal, Torslanda and Säve in Gothenburg, Sweden.

The sales price amounts to SEK 2.7 billion (US$304 million) on a debt free basis and the divestment results in a capital gain of SEK 1.4 billion (US$157.6 million), which is expected to impact the Group’s operating income by the corresponding amount in the fourth quarter of 2016.

The divestment is part of a long-term plan to gather the majority of Volvo Group office workers in Gothenburg in an area that will be called Campus Lundby.

Volvo Group will rent some of the properties that are sold during a transitional period, pending the completion of Campus Lundby.  

The Group’s operating cash flow and financial net debt will be positively affected in the amounts of SEK 2.6 billion (US$292.8 million) and SEK 2.3 billion (US$259 million), respectively, in conjunction with the closing of the transaction, which is expected to be carried out in the fourth quarter of 2016.


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