After 10 years of producing precast concrete frames, Kilenkrysset AB has now chosen to sell its precast factory Kilen Prefab AB to K-Fastigheter (K-Fast Holding AB) and at the same time begins a collaboration with K-Fast Holding AB with the aim of developing more rental apartments in the Mälardalen region.
“It feels very positive and gratifying that the buyer is K-Fastigheter, a strong player in the housing sector. I am very proud of the factory we have built up over the years, and it will be exciting to follow its future development,” says Dan Bohman, CEO of Kilen Prefab AB.
The deal comprises the company Kilen Prefab AB and part of the existing staff. The property Bussen 2 Building A remains within the Kilenkrysset group and will be leased to the incoming buyer. The factory will be run by Finja Prefab AB, a wholly owned subsidiary of K-Fast Holding AB.
The preliminary purchase price for the shares is SEK 21 m. Possession takes place on 30 April 2021.
“With this acquisition we welcome some twenty new employees in Strängnäs. The facility is well run and gives us a good complement that strengthens our market position, and we look forward to offering Prefab’s climate-positive concrete frames to more customers. As a concrete frame has a long service life, it is an excellent choice when you think long term, as we do,” says Kaj Grönvall, CEO of Finja Prefab.
Like Kilenkrysset, K-Fastigheter is a company in the property sector. Its goal as a property owner is to create attractive homes where people enjoy living. The group’s operations comprise active property management, project development and in-house construction. To increase cost efficiency and shorten construction times, K-Fastigheter has chosen to work with three in-house concept buildings, which are built for its own management. The purchase of Kilen Prefab AB is an important part of the drive to build more rental apartments in the Mälardalen region.
“The purchase of this precast factory strengthens K-Fastigheter’s production capacity in the Mälardalen region, a priority growth area for us and one of Sweden’s most construction-intensive regions. We currently have over 1,300 apartments in production, and our goal is to offer more affordable rental apartments in more towns around Lake Mälaren and nearby areas with good growth in the future,” says Jacob Karlsson, CEO of K-Fast Holding AB.
Alongside this deal, Kilenkrysset begins a collaboration with K-Fast Holding AB with the aim of developing more rental apartments in the Mälardalen region. Together they are starting a jointly owned company to operate in the Mälardalen region and build K-Fastigheter’s concept buildings for long-term management on the residential building rights developed by Kilenkrysset. The new company will operate under the name K-Fast Kilen AB; K-Fastigheter owns 51 per cent of the share capital and Kilenkrysset 49 per cent.
“This collaboration gives K-Fastigheter access to many attractive building rights in a growth area that is important to us. Kilenkrysset is a major landowner and can contribute land to our joint company in areas that K-Fastigheter considers suitable for building apartments in our three concept buildings. With its geographical proximity and broad network, Kilenkrysset will also assist K-Fastigheter in procuring infrastructure and groundwork contracts for the upcoming housing production. We will build and manage our buildings to the same high standards that we set for all our projects,” continues Jacob Karlsson.
– The deal we are now completing feels very positive, and I believe that starting a collaboration with K-Fast Holding AB will bring good energy to our future development within the group. Since 1990 we have built up a construction and property group that has produced many significant deals with many positive effects. Over the years we have become one of Sweden’s largest landowners, and our business concept of building, managing, owning long term and developing areas for warehousing and logistics, offices, housing and community use runs through all our decisions. The collaboration with K-Fastigheter has great potential, as we largely share the same business philosophy. Within the group we also have our company Kilen Baltic, with operations 30 km outside Riga, Latvia. The company manufactures reinforcement cages for Kilen Prefab and will continue to do so. This company is not part of the deal, says Jan Persson, CEO and owner of the Kilenkrysset group.
For more information, please contact:
Jan Persson, CEO and owner, the Kilenkrysset group
Email: jan.persson@kilenkrysset.se
Phone: 070- 766 54 04
Kaj Grönvall, CEO, Finja Prefab AB
Email: kaj.gronvall@finjaprefab.se
Phone: 070 -266 71 79
Jacob Karlsson, CEO, K-Fast Holding AB
Email: jacob.karlsson@k-fastigheter.se
Phone: 073 -821 96 26
Anders Antonsson, Head of Investor Relations
Email: anders.antonsson@k-fastigheter.se
Phone: 070- 873 09 00
Kilenkrysset is a privately owned property group whose business concept is to build, own and manage properties. Good relationships are our hallmark, with a focus on the long term, satisfied customers and motivated employees. Our property portfolio consists of approx. 395,000 m2 of lettable area, mainly warehouse, logistics and office properties, in 13 municipalities. Together we contribute to community development by planning new urban districts as well as new logistics and industrial areas on the approx. 23 million m2 of land in our property portfolio. Kilenkrysset has a turnover of approx. SEK 600 m in its construction business and SEK 300 m in its property management business.
Kilen Prefab AB is a company within the construction and property group Kilenkrysset AB. The company produces precast concrete elements in a production facility of approx. 6,000 sq m in Strängnäs, in the Mälardalen region. Since 2014 the company has been quality certified to ISO 9001:2015 and BBC certified through Nordcert. The products are delivered mainly to projects within the group, but also to players on the external market. The company has an annual turnover of approx. SEK 60 m.
K-Fastigheter’s goal as a property owner is to create attractive homes where people enjoy living. The group’s operations comprise active property management, project development and in-house construction. To increase cost efficiency and shorten construction times, K-Fastigheter has chosen to work with three in-house concept buildings, which are built for its own management. K-Fastigheter offers some 2,240 homes in several locations in the Øresund region, Småland and western Sweden, and evaluates new markets as production capacity grows. The group’s property portfolio has a book value of SEK 6.9 billion, with an annual rental value of approx. SEK 265 m. Since November 2019 the company’s B shares have been traded on Nasdaq Stockholm (ticker: KFAST B). Read more at k-fastigheter.com
