NIB lends to Vasakronan’s building redevelopments in Sweden

The Nordic Investment Bank (NIB) and the Swedish property company Vasakronan AB have agreed on a SEK 590 million 10-year loan for financing the redevelopment and refurbishment of the two buildings Lumi in Uppsala and Hötorgshus 2 in Stockholm, Sweden. Both buildings are to be LEED Platinum certified.

The Lumi office property in Uppsala, built in the 1970s, will be renovating around 15,000 square metres with completion expected by the end of 2024. The redevelopment, costing SEK 740 million, aims to improve the energy class from G to B resulting in 77% of decrease in energy demand. The project’s focus is to conserve and extend the existing building reusing significant amount of materials from demolition activity at site.

NIB will also finance the redevelopment of Hötorgshus 2 in Stockholm, an office building from the early 1960s in the central business district. The renovation will be approximately 8,191 square metres with expected completion in 2024. The aim of the redevelopment is to respect the building’s historical value while aiming to upgrade its energy rating, from class F to at least C., cutting the energy demand by 71%. The total renovation cost is SEK 440 million.

The entire loan is eligible for financing through NIB Environmental Bonds.

“Uppsala and Stockholm are at the heart of Sweden’s urban development, and these projects reflect our commitment to supporting the transformation of these cities into models of sustainable living and working,” says Tony Mäkynen, Director of Industry in NIB.

“It’s positive that the NIB has financed the renovation projects, and we are proud to make this first loan together with the NIB. The renovations enable significant energy savings in both properties. With a large proportion of recycled materials, it is also a project with low climate impact from the construction process. This is part of Vasakronan’s effort to achieve climate neutrality across the entire value chain by 2030,” says Thomas Nystedt, Group Treasurer Vasakronan.

Vasakronan AB is Sweden’s leading commercial property developer and is jointly owned by the First, Second, Third and Fourth Swedish National Pension Funds. The company manages and develops large property clusters, including office and retails spaces, in Stockholm, Gothenburg, Malmö, and Uppsala.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact
Tony Mäkynen, Director, Industry, at +358 10 618 0523, Tony.Makynen@nib.int

Kim Krokfors, Senior Banker, Country Lead for Finland, at +358 10 618 0517, Kim.Krokfors@nib.int

David Rasmusson, Communications, at +358 50 476 3071, David.Rasmusson@nib.int