The property is a vacant land plot on Park Avenue in Manhattan with building rights for approximately 33,000 square meters of office space. The site and its development rights was acquired in 2020, with an additional acquisition in 2021, for a total of approximately SEK 2.5 billion. Closing is expected to take place during the second quarter of 2026.

The sale is expected to have a net income effect of approximately SEK -1 billion. Since the acquisition, the property has been a project property with the intention of developing and constructing the property in-house, and has therefore carried early project costs such as demolition and design costs as well as related capitalized financing costs.

Upon sale, the positive liquidity effect is expected to amount to approximately SEK 2.3 billion. In addition, a sale entails significant risk reduction over the coming years. The latter by Corem avoiding development and market risks related to the extensive development that is necessary. Corem also significantly reduces the future total investment volume through the sale of the property.

“We are very pleased to have found a strong and experienced buyer for our development property on Park Avenue. This potential transaction aligns well with our established strategy to focus on our core market — strong cities within the Swedish real estate sector. A divestment at this stage unfortunately means that potential project profits cannot be realized by us, and therefore the current book value will not be reached, as we have carried out preparatory work. In addition to further reducing our holdings in the U.S. through this transaction, capital is also being freed up for more efficient allocation,” said Rutger Arnhult, CEO of Corem.