Fully leased school property located in a fast expanding area of greater Stockholm

Skutkrossen

The public elementary school provided education services for some 900 students in the property.

June 15, 2020

The 12,000 sqm property called Skutkrossen was developed in 1970 and acquired by CMNRE I Fund in Q2-2017. Although the property was leased to ten tenants, approximately 67% of the lettable space and 82% of the rental income related to a lease to the city of Stockholm’s Education Department for school use. The public elementary school provided education services for some 900 students in the property.

At acquisition, the property use permit was nearing expiry and the school close to breaching the zoning plan. If not correctly addressed, the school would possibly have to close. CapMan Real Estate was able to sort out the zoning issues, allowing for a permanent school use, and signed a new long lease with the Education Department. As a property owner in the area, CapMan Real Estate also participated in the wider zoning process for the local area with the purpose of enhancing the local socioeconomic status as well as improving the general outdoor areas. This included a better provision of green areas and bike commuting opportunities.

The technical installations in the property at acquisition were in poor condition. Parts of the ventilation system were from 1970 and in need of upgrades and replacement, particularly when considering the ventilation demand from the large number of students in the property every day.

During its ownership, CapMan Real Estate improved the energy performance in the property by replacing the Building Management System. In addition, outdated installations were replaced with environmentally friendly alternatives. For example, 800 sqm of solar panels were installed in H2-2019 and contribute approximately 34% of the annual energy requirement in the property. This reduces the energy cost by an estimated SEK 165,000 per annum.

CapMan Real Estate sold the property in Q1-2020 with a great result to a Swedish institution specialised in owning school properties long-term. The environmental improvements and energy savings made by CapMan Real Estate contributed positively towards the sale price achieved as well as saving costs during its period of ownership.

Key SDGs and targets

11-3 Inclusive and sustainable urbanisation

CapMan Real Estate contributed to solving zoning issues related to the use of the property, allowing it to be utilised as a permanent school facility. CapMan Real Estate also participated in the wider zoning process for the local area with the purpose of enhancing the local socioeconomic status as well as improving the general outdoor areas. This included a better provision of green areas and bike commuting opportunities.

7-2 Increase global percentage of renewable energy
7-3 Double the improvement in energy efficiency

34% Of annual energy requirement comes from renewables

800 sqm solar panels were installed in H2-2019 and are estimated to contribute to 34% of the annual energy requirement in the property and reduce the energy cost by SEK 165,000 per annum.