The business world call it a super sale at Östermalm. And you can probably call it that.
The billion-dollar company Kvalitena, which mainly owns real estate, has been weighed down by enormous debts and difficulties in paying everything from interest to bills.
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Ancient address: Svenskt Tenn, Dramaten, Hovstallet
In order to overcome the problem, they have announced a sale of Strandvägen 5A, a historic building with, among other things, Svenskt Tinn as a tenant on the ground floor and neighbors such as the Royal Dramat and Hovstallet.
It is the jewel in the crown of Kvalitena’s holding company that is now being haphazardly removed. The property is valued at 1.5 billion and the entire company, which owns 4 fine properties in total, is valued at 2 billion kroner.
Bankruptcy at the historic address: Billion company in the middle of the city
A trifle in the context
Now a deal has gone through the cracks that Affärsvärlden has reviewed.
By buying half of the holding in the holding company, which is believed to be worth half of the 2 billion, an unknown buyer now gets access to 49 percent of the ownership in the four addresses.
And they got a hefty discount. For just 100 million kroner, that is, just under a tenth of the shares’ alleged value, they have bought into some of Östermalm’s finest addresses.
Even if you subtract the company’s debts from the value – according to the newspaper, the holding company has debts of SEK 1.3 billion, the purchase price corresponds to only a fraction of the amount.
Quality bleeds money
Kvalitena is bleeding money just like many other Swedish real estate companies. International assessors have also warned that the Swedish real estate market may be a concern in the future.
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Real estate giant without real estate
After not being able to pay its interest or debts, Kvalitena has been asked for bankruptcy. In order to save themselves from the gallows, they have to sell everything that is not stuck – and a lot that is stuck.
After selling the properties in Stockholm and some properties abroad, Kvalitena will not remain as a property owner at all, Affärsvärlden writes:
“The days of Fastighetsbolaget’s Kvalitena are numbered. At least as a real estate company,” writes the newspaper.
Now it remains to be seen whether the company manages to turn around under the gallows.
Bankruptcy negotiations with are to be held in the Stockholm District Court on Monday, March 4.
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