AF Gruppen

Related Party Transaction • Mar 28, 2018

AF Gruppen acquires development rights in central Gothenburg

AF Gruppen acquires development rights in central Gothenburg

AF Gruppen is acquiring the former office building of the old Eriksberg shipyard on Celsiusgatan in Gothenburg. The property is being sold by the municipally-owned development company Älvstranden Utveckling AB.

The acquisition also includes associated development rights in relation to Östra Eriksbergsgatan, where AF Projektutveckling is planning the new construction of a further approx. 30 apartments, retail premises and car parking.

The purchase price for the development rights is SEK 101 million. The detailed plan is expected to be finalised in 2018.

"Our plan is to convert the fine old brick building, measuring around 8,000 m2, into just over 100 attractive apartments. The detailed plan allows for construction on three floors, all of which have fantastic views of the water," says Andreas Rydbo, CEO of AF Gruppen Sverige.

"With the acquisition of these attractive development rights, AF Gruppen is continuing to demonstrate that we have the ability and the desire to contribute to the development of Gothenburg's new city centre," says Bård Frydenlund, EVP Sweden at AF Gruppen.

Last year, AF Gruppen entered into an agreement to develop a large construction project situated on the centrally located Skeppsbron, which will be Gothenburg's new quayside meeting place by the Göta River.

For further information:

CEO, AF Gruppen: Morten Grongstad, tel: +47 991 53 905

EVP Sweden, AF Gruppen: Bård Frydenlund, tel: +47 918 68 621

CEO AF Gruppen Sverige: Andreas Rydbo, tel. +46 31 762 40 03