Serneke and Balder to develop new urban block in Karlastaden

Through two transactions, Serneke has transferred the property in question to Karlastaden Group AB, the joint venture formed in connection with another transaction halfway through 2021 and owned in equal parts by the parties. The first transaction covers the upper part of the property and the second covers the lower, podium section of the future urban block. Both parts are subject to a mutual framework for continued development and contracting.

The underlying property value for the first transaction amounts to about SEK 295 million and is included in the figures reported for the first quarter of 2022. The second transaction has an underlying property value of SEK 291 million and will be included in the figures reported for the second quarter of 2022.

The building, named Auriga, will have 36 stories, total floor space of about 48,000 m² and, in addition to some 400 apartments, will also house offices, as well as ground-floor shops and restaurants. According to the plans, this will be the third-tallest building in the district and thus also the third-tallest residential building in Gothenburg.

“We are accomplishing major strides in making Karlastaden a reality and doing this alongside Balder feels both natural and very satisfying. We are now collaborating on projects in many parts of Sweden, and these are progressing very well. Having the opportunity to continue pursuing a winning concept feels very positive,” says Ola Serneke, CEO of Serneke Invest.

“Our collaboration works very well, with the perhaps the greatest evidence of this now being visible from increasingly afar. As Karlatornet grows, Gothenburg gains an exciting new skyline, and it feels really good to be taking the next step in Karlstaden’s development. This will be a completely new district with housing, restaurants, shops and everything else required of a modern and vibrant district,” says Erik Selin, CEO of Fastighets AB Balder.

Serneke will be responsible for construction and property development for the Auriga block, with an estimated order value of approximately SEK 1,650 million. The value of the order will be included in order bookings on the signing of the contracts.

Since December 2020, Balder has been the joint owner of the Karlatornet tower, the Nordic region’s tallest building and currently under construction. Serneke and Balder are also already developing four more buildings in the emerging Karlastaden district in Lindholmen in Gothenburg.