core sector communique

LKAB purchases rental properties from TOP bostäder AB, providing 80 new apartments in Gällivare in 2012/13.

LKAB is purchasing the Granbacka residential area from TOP bostäder AB, the municipal property management company in Gällivare. The purchase includes 93 apartment units in eleven buildings, as well as five properties for which planning permit has been granted in Mellanområdet in Gällivare.

"This deal complements our real estate holdings in an ideal way, not least because the dwellings are well-placed geographically," says LKAB's President and CEO, Lars-Eric Aaro.

"Together with the new building production we have planned for Gällivare, this acquisition creates opportunities for more efficient property management and greater variation in residential offerings in terms of size, rent level and other aspects," adds Lars-Eric Aaro.

The purchase also means that LKAB will gain adjoining residential areas in Mellanområdet.

"For practical reasons, we are working to consolidate our residential areas. This is advantageous with respect to the proximity of our rental properties in nearby Myråsen and Bäckåsen. It also allows us better possibilities for developing our residential areas," says Siv Aidanpää-Edlert, President of FAB, LKAB's property management company.

The deal also means that TOP bostäder AB will build about 40 new apartments in Forsheden.

FAB will invest in the Granbacka residential area. Particular attention will be given to outdoor environment and a landscape architect will be involved in the planning. FAB will utilize the existing planning permits, which are included in the purchase and will allow construction of 40 new apartment units.

Granbacka currently has an occupancy turnover of five to ten percent. This implies that the same number of apartments are made available each year. The area will thereby play an important role in the urban transformation of Malmberget.

In total, LKAB owns 700 dwellings in Malmberget, Koskullskulle and Gällivare. In the past year LKAB has built 28 apartments in the Bäckåsen area. The company also intends to build an additional 200 apartments in Gällivare as soon as land has been designated by the Municipality of Gällivare.