Important events in 2013

In addition to continuous efforts to ensure the properties are managed in a sustainable way that adds value, a number of large projects have been under way, all with the goal of strengthening the position of ICA Gruppen and the local ICA and Rimi retailers in the grocery retail market in the long term.

In 2013 ICA Gruppen established 15 new stores in Sweden and 3 new stores in Norway with a total area of 39,766 square metres. Also in 2013, ICA Real Estate implemented 17 development projects where the company added 24,520 square metres of retail space.

Significant divestments during the year

During the first quarter of 2013 two properties were sold in Norway, located in Steinkjer and Lillestrøm. The properties did not contain any ICA or Rimi operations. The underlying property value was around SEK 120 million. The transaction in Lillestrøm included an option allowing ICA Norway to establish a store in the property in the future. In the fourth quarter, two commercial properties in Sweden – in Linköping and Älmhult – were sold to Ancore Fastigheter. The underlying property value was around SEK 435 million and it consisted of around 18,000 square metres of rentable space. The effect of the sale on ICA Real Estate’s income was SEK 14 million.

Acquisition of warehouse property in Helsingborg

In order to achieve a more efficient and modern logistics structure, an expansion of ICA Sweden’s warehouse in Helsingborg is needed. As part of this process, ICA Real Estate acquired the warehouse property in Helsingborg through the company Långeberga Logistik for an agreed price of SEK 931 million. The warehouse, which will be expanded by around 34,000 square metres, is expected to be ready in 2015 and will be one of the largest warehouse facilities in Sweden.

Aggressive investment in Årsta

At the beginning of 2013 a letter of intent was signed with the City of Stockholm regarding the sale and acquisition of land in Årsta outside Stockholm. The agreement will allow ICA Real Estate to sell land belonging to a warehouse property within the Årstafältet city development area. The agreement also gives ICA Real Estate the right to acquire land adjacent to the warehouse property. This will guarantee an attractive store location for ICA in what is currently one of Stockholm’s biggest housing construction projects. The ICA store is expected to open in 2017.

Continuing development in Barkabystaden

Between the Barkaby retail area and the new Barkarbystaden district north of Stockholm ICA Real Estate is building a 17,500 square metre shopping centre called Flottiljen Köpkvarter. In addition to an ICA Maxi store on around 7,000 square metres, there will be restaurants, retail outlets, a pharmacy, a state-run alcohol store, health care, local services and a number of car parks.

An important focus in this project is the environment. The ICA Maxi store will be Swan eco-labelled and the entire shopping centre will be a certified green building due to the use of state-of-the-art solutions for energy saving and waste management.

In total ICA Real Estate is investing around SEK 400 million in the project which will be finished in the first half of 2014.

Gnista shopping centre

In summer 2013 ground was broken for Uppsala’s second ICA Maxi store located at the Gnista intersection in south-east Uppsala. The store area will be around 8,000 square metres and move-in is planned for autumn 2014. In connection with the new ICA Maxi store, there are plans for 5,000 square metres for Goda Grannar – ICA Real Estate’s concept for businesses located close to big ICA stores. There will also be the potential to develop the shopping centre to include an additional 15,000 square metres of space.

With its strategic location where it will enjoy considerable traffic flows and good visibility, the shopping centre has strong potential to be an efficient, accessible and attractive retail area with strong tenants.

New Rimi store opened in Hemsedal

In summer 2013 a new Rimi store was opened in the tourist town of Hemsedal in a property co-owned by ICA Real Estate and Mythe Invest AS. The store’s total area is 1,200 square metres and it will replace an ICA Nær store closed in connection with the opening of the new Rimi store.

Energy-efficient stores

ICA Real Estate plays a key role in helping to reach the Group-wide environmental goals. Investments are made on an ongoing basis in various energy-saving solutions. The stores must optimise their energy efficiency without affecting the customer offering. In 2013 a 4,750 square metre Maxi ICA Stormarknad was opened in Falköping. The store has set a high bar for reducing energy consumption. The aim is for energy efficiency measures, such as lids on refrigerators and freezers and automated lighting and ventilation, to reduce energy consumption by around 40%.

ICA Gruppen issued preference shares in ICA Real Estate Sweden

In December 2013 ICA Gruppen issued unlisted preference shares totalling SEK 3.0 billion in ICA Fastigheter Sverige AB.  The share issue was part of the financing when ICA Gruppen was formed.

The preference share issue was subscribed for in equal parts by AMF Pensionsförsäkring AB and If Skadeförsäkring AB.