Muninvägen/Huginvägen

Stable residential portfolio of 32 terraced houses in Odensbacken

Attractive cash flow property with low management risk and strong demand

There is now an opportunity to acquire a well-maintained residential portfolio consisting of 32 terraced houses located in attractive Odensbacken, just east of Örebro. The property comprises a total of 2,726.4 sqm of rentable residential area distributed across a cohesive residential area with generous plots, well-maintained green spaces and good residential quality.

The property is situated on a plot area of approximately 20,971 sqm and mainly comprises residences built in 1994 with additional construction from 1998. The area is well planned and offers a calm and pleasant living environment close to services, shopping, transport links and community services.

The residential area gives a very good overall impression, where well-maintained houses, tidy plots and long-standing tenant relationships contribute to the area's attractiveness and long-term stability.

Stable rental income

The property generates annual rental income of approximately SEK 2,654,952 according to the current rental basis.

The total rentable residential area amounts to 2,726.4 sqm, which corresponds to an average rental income of:

SEK 974/sqm per year

The rent level is stable and the cash flow is characterised by low vacancy risk, limited tenant turnover and good predictability.

The property thus offers an attractive combination of ongoing returns and long-term value appreciation potential.

Purchase price SEK 28,000,000

Living area 2,726.4 sqm

Rental income SEK 2,654,952

Rental income/sqm SEK 974/sqm

Operating cost (Ongoing and future maintenance) SEK 175/sqm/year

Total operating costs SEK 477,120

Net operating income SEK 2,177,832

Price/sqm SEK 10,270/sqm

Gross yield 9.48 %

Direct yield 7.78 %

Cold rent throughout the entire portfolio

All residences are let on cold rent terms, which means that the tenants themselves are responsible for heating, household electricity and other consumption costs.

This entails several clear advantages for the property owner:

* Limited exposure to energy price developments.

* High predictability in net operating income.

* Reduced administrative handling.

* Lower operating and cost risk.

* Simple and efficient management structure.

The cold rent model creates a robust cash flow in which the investor is not affected by rising energy costs in the same way as in traditional residential portfolios.

One of the market's most attractive residential segments

Terraced houses today constitute one of the most sought-after segments in the rental market. The combination of a house-like feel, private entrance, private patio, garden and ground-level living makes this housing type attractive to a broad target group.

Demand for this type of housing is very strong, and there is continuously significant interest from potential tenants when residences become available.

Historically, turnover has been low and many tenants choose to stay for a long time, which creates:

* Very low vacancy risk.

* Limited letting costs.

* Stable rental income.

* Predictable cash flows.

* Long-term strong demand.

Attractive target group with long tenancy periods

The dominant tenant group consists of older people and pensioners who appreciate the design of the residences and the high residential quality.

Most of the residences are single-storey, which makes them particularly attractive to older tenants seeking comfortable, accessible and long-term living without stairs.

This target group is generally characterised by:

* Long tenancy periods.

* Stable ability to pay.

* Low turnover.

* High satisfaction.

* Great care for the home and its immediate surroundings.

Many tenants regard the residence as their permanent home and choose to stay for a very long time, which further strengthens the stability of the portfolio.

Tenants who care for their homes

A clear strength of the portfolio is that the tenants treat the residences as if they were their own.

This is evident through:

* Well-maintained gardens.

* Carefully maintained patios.

* Limited interior wear.

* Low restoration costs upon move-out.

* An consistently well-kept and attractive residential area.

The property therefore exhibits significantly lower management intensity than many traditional apartment buildings where turnover is higher.

Apartment distribution

The portfolio comprises a total of 32 terraced house residences distributed as follows:

* 24 residences of approximately 80 sqm

* 8 residences of approximately 100 sqm

The average residence size is approximately 85 sqm, which creates an attractive housing option for both older households and smaller families.

All residences offer a private entrance, private patio, garden and good parking facilities.

Property facts

Property designation: Örebro Talby 27:56

Address: Huginvägen and Muninvägen, Odensbacken

Plot area: approximately 20,971 sqm

Rentable residential area: 2,726.4 sqm

Number of residences: 32 terraced houses

Year of construction: mainly 1994 with additional construction from 1998

Tax assessment value 2024: SEK 22,355,000

Tax code: 220 – Small house unit, built

Water and sewerage: Municipal water and sewerage

Investment summary

Örebro Talby 27:56 offers a unique opportunity to acquire a larger cohesive residential portfolio with stable cash flows, low vacancy risk and limited management requirements.

The property's strengths include:

* Annual rental income of approximately SEK 2.65 million.

* Rental income of approximately SEK 974/sqm.

* Cold rent in all residences.

* Attractive single-storey houses in terraced house format.

* Very strong demand for the housing type.

* Older and stable tenant structure with long tenancy periods.

* Well-maintained residences and limited wear.

* Low vacancy risk and low turnover.

* Simple and efficient management.

Overall, a defensive residential investment is offered with strong underlying values, predictable cash flows and a tenant structure that creates long-term stability and limited operational risk. Contact Lejon for further dialogue about the process. For sale via AB