STORÅ/STRÅSSA

Lindesås Fastigheter AB

The property portfolio comprises several residential properties in Storå and Stråssa in Lindesberg Municipality, with a total of 64 dwellings distributed across several buildings. The properties in question are Storå 13:9 with the addresses Stationsvägen 12, 14 and 16 in Storå, as well as Kårberget 3:49, Kårberget 3:50 and Kårberget 3:51 in Stråssa with the addresses Sörvägen 1–31 and Skäftavägen 31–39. In addition, the undeveloped property Kårberget 21:1 is included, comprising approximately 14,000 square metres of land with development potential.

The total residential area amounts to around 4,000 square metres, which means an average living area of approximately 62.5 square metres per apartment. All properties are classified as rental housing units, dwellings (type code 320).

The properties in Storå (Storå 13:9) form a residential block along Stationsvägen with three two-storey buildings constructed during the 1960s. They consist mainly of apartments ranging from one to four rooms and a kitchen. The buildings have brick facades and gabled roofs, and the property also includes parking areas as well as green courtyard areas. Renovations have been carried out, and in addition, exterior doors have been replaced in the property.

All apartments at Stationsvägen 14 have undergone extensive full renovations, with the exception of one larger unit in the basement level, which has only received a simpler surface update. The renovations include, among other things, new security doors, fully renovated bathrooms, new kitchens, upgraded white goods and all surfaces.

The properties in Stråssa (Kårberget 3:49, 3:50 and 3:51) are located in a quiet and open residential area. At the addresses Sörvägen 1–31 and Skäftavägen 31–39 there are in total a number of two-storey buildings constructed around 1965. They have facades in render and brick, gabled roofs and typical 1960s architecture. According to the property register, the building area for these amounts to around 1,400 square metres per unit. The area also includes parking spaces and simple green areas.

The undeveloped property Kårberget 21:1 comprises approximately 14,000 square metres of land. The land constitutes a potential development area with the possibility of future exploitation, for example complementary residential development or other small-scale operations, depending on the municipality's planning conditions.

Condition and potential of the buildings

The properties have a significant need for renovation, both internally and externally. The standard level varies between the buildings, but generally there is a need for renovation of surfaces, kitchens and bathrooms as well as some updating of technical installations. Facades, roofs and outdoor environments may also need to be reviewed gradually. There is no registered energy declaration for the buildings.

Despite the existing maintenance needs, the long-term potential is considerable. The properties offer a stable basic structure, functional floor plans and the opportunity for value appreciation through gradual renovation and increased occupancy rate. The undeveloped land adds further development opportunities for the investor who wishes to expand the portfolio over time.

Financial summary and potential

At full occupancy, the rental value amounts to approximately SEK 3,422,772 per year, corresponding to approximately SEK 856 per square metre. According to the current income statement, current rental income amounts to SEK 874,363 per year, which means an occupancy rate of approximately 25.6 per cent. The operating and maintenance costs, including a calculated maintenance of SEK 100 per square metre per year, amount to approximately SEK 1,725,000 per year. This corresponds to approximately SEK 431 per square metre. The net operating income at full occupancy amounts to approximately SEK 1.7 million per year, or SEK 424 per square metre.

Assessment and conclusion

The properties represent a significant value-add case with great development potential. The low occupancy rate and the relatively extensive renovation needs provide an opportunity for an active manager to create both value growth and strong cash flow. At full occupancy, a net operating income of approximately SEK 1.7 million is achieved, which corresponds to a direct yield of close to 19 per cent.

The price level per square metre is very low, and the possibility of taking over existing loans of approximately SEK 6.3 million on favourable terms creates an attractive financial structure. The combination of low capital investment, high rental potential and possible exploitation of undeveloped land makes this a rare opportunity for an investor seeking a larger residential portfolio with high development potential in Lindesberg Municipality.