Arlandastad Group has recently conducted two deals regarding Skavsta Airport. The first was the divestment of 7,300 sqm to Connect Skavsta Property AB, which has held the land on a long-term lease since 2007, with one of its hotels located there. The purchase price was SEK17m, or SEK2,339 per sqm. By contrast, building rights at Skavsta hold a valuation of SEK287 per sqm and we believe the acquisition cost for the undeveloped land when Skavsta was acquired totalled some SEK110 per sqm. The other deal undertaken was Arlandastad Group’s acquisition of 50% of a property, Lund 3:8. This comprises 5.7 hectares of land that also accommodates a long-term car park. A new JV company will own the land with the former owner of the property, Fjellskärs Gård AB. Four buildings will be constructed on the site, each comprising 2,500 sqm. These can be leased to companies involved in airport-related business or working with the East Link or other future projects in the area.

We believe the deal with Connect should be considered in the light of the cash component of the Skavsta acquisition having been SEK29m. Arlandastad Group has thus managed to reclaim a large part of the cash expended on the acquisition. The deal also highlights the value to be found in developing or selling the land around Skavsta. Through the JV, Arlandastad Group can also increase its revenues from Skavsta by removing a competitor in the car park business. In summary, we see both deals demonstrating that Arlandastad Group has a clear plan for the area.

Further deals will spur the share price