Sweden-based real estate company Corem Property Group AB (publ) has entered into an agreement to divest its Manhattan-based project property, 28&7, to U.S. real estate investment firm Capstone Equities.
The transaction reflects an underlying property value of approximately SEK 770 million based on current exchange rates, with closing anticipated by the end of August 2025.
Located in the heart of Manhattan, 28&7 offers approximately 9,300 square meters of leasable space, primarily dedicated to office use, along with restaurant units at street level. The property is described as nearly fully completed and leased, positioning the sale as strategically timed for both buyer and seller.
The transaction will result in a net profit impact of approximately -SEK 215 million for Corem. The loss is attributed to adverse market conditions during the project lifecycle, including rising construction and financing costs, as well as extended timelines for project completion.
Despite the loss on this specific asset, Corem emphasized its broader realignment strategy. For the interim period January to June 2025, Corem has executed property divestments totaling SEK 3.5 billion in underlying value, with a net profit effect of approximately -SEK 135 million.
Commenting on the sale, Rutger Arnhult, CEO of Corem, said:
“The sale of 28&7 is well-timed for us as the project is nearly fully completed and leased. As we are now refining Corem, a reduction in the US portfolio is a long-term strategic choice. The aim is to focus on our main market consisting of strong cities within the Swedish real estate market. All divestments during the period enable a continued optimization of our financial structure, something we see provides positive long-term effects.”
