KlaraBo has signed an agreement to acquire a housing portfolio from Niam in Östersund with a total of 877 rental apartments. The acquisition was completed at an underlying property value of SEK 890 million and is KlaraBo's single largest acquisition. Following deductions for latent tax, the transaction was completed for approximately SEK 13,850 per sq.

m. The total area is approximately 62,000 sq. m., of which 96% is residential space. The portfolio is fully let and is situated in central Östersund and the city districts of Frösön, Odensala and Torvalla.

The acquisition will increase KlaraBo's earnings by 15% compared with its earnings capacity in the second quarter of 2022. The rental value amounts to approximately SEK 65 million and comprises almost exclusively residential income with an average rent for the apartments in the portfolio of SEK 964 per sq. m., which provides excellent improvement opportunities in line with KlaraBo's business model.

In connection with the acquisition, KlaraBo is planning to establish its own property management office in the city. The acquisition is financed by bank loans with a maturity of three years with a fixed interest rate totaling 1.4% and existing cash. KlaraBo takes over the credits from the seller and has received a final credit decision, but the transaction is conditional on entering into a loan agreement in line with the credit decision, before closing which is scheduled for September 30, 2022.

Following the acquisition, a total of 6,509 rental apartments are under management, corresponding to approximately 492,570 sq. m., which means that the company has essentially met its stated operational goal to own and manage at least 500,000 square metres of residential floor space by the end of 2025.