EQT Real Estate signs pre-lease for development of 14.1k sqm education property in Stockholm
The rapid pace of urbanization and creation of new residential neighbourhoods is placing new demands on cities’ and creating new urban landscapes devoid of necessary local amenities, such as modern education facilities in central locations. Guided by this macro trend and combined with deep sector expertise, EQT Real Estate is playing its part in solving this societal challenge.
EQT Real Estate recognizes the need for modern education properties as particularly high in Stockholm due to the demographic development of a rapidly increasing population. In June 2018, EQT Real Estate acquired the leasehold to Hönsfodret, an education and office asset located on the island of Södermalm in central Stockholm. In collaboration with AcadeMedia, a leading education provider in Northern Europe, EQT Real Estate developed a clear thesis and vision for the property, applying a business-to-business mindset in property development and providing a corporate solution for their real estate needs.
EQT Real Estate has signed a 16-year pre-lease with AcadeMedia for a 14.1k sqm development called Campus Södermalm which upon completion of the heavy refurbishment in H2 2022 will house four Upper Secondary Schools. All the schools are currently operational elsewhere in Stockholm and will relocate to provide their students access to a new inspirational environment that promotes a healthy lifestyle with onsite facilities for physical activities and shared communal areas to facilitate student interaction.
The property is currently being remodelled and extended to house state-of-the-art classrooms, labs, a library, a sports centre and spacious communal areas. In addition, the asset will house a student managed restaurant that will serve the local community creating additional amenity for the local residents. Campus Södermalm directly overlooks the water and benefits from multiple means of public transportation in close proximity. Completion of the construction works is expected in the second half of 2022. The lease with AcadeMedia will commence upon completion of the development, in time for the start of the academic year.
The development will target a BREAM certification of ‘very good’. The remodelling of the facade, all doors and windows as well as the roof will ensure that the property will exceed the ESG targets required by occupiers and institutional owners. An indoor bicycle storage room will be provided to accommodate in excess of 170 bikes, encouraging students to choose a healthy means of transportation year-round.
Henrik Orrbeck, Partner at EQT Real Estate, commented: “For a long time, AcadeMedia has been looking for a property with an attractive location in central Stockholm to house Campus Södermalm. EQT identified the leasehold to Hönsfodret, at the time 50 percent vacant, and saw the potential to transform it into one of Stockholm’s foremost educational properties. We are very happy that we were able to help AcadeMedia realize their vision for Campus Södermalm.”