Akademiska Hus Annual Report

MARKETSOUTHERN REGION (SYD)The Öresund region is one of the most dynamic border regions inEurope with 3.6 million inhabitants. One-quarter of the collective GNP ofSweden and Denmark is generated here. There is a well-establishedinfrastructure thanks to major investments, of which the Öresund Bridgeis the biggest to date. The City Tunnel project is in progress which will,among other things, link and improve rail-bound traffic betweenSweden and Denmark. Malmö University, Lund University, the SwedishUniversity of Agricultural Sciences in Alnarp and Kristianstad UniversityCollege are part of Öresund University, a collaborative venture involving12 universities with 150,000 students and 14,000 researchers, makingthe region one of the foremost university regions in Europe.The majority of the properties owned by Akademiska Hus SouthernRegion are to be found in Lund. The university in Lund is the largestin Scandinavia. The large number of research and development companieshave grown over the years in harmony with the University andthe research park Ideon. During 2008, around 40,000 square metresof office space will be completed in Lund. Akademiska Hus currentlyhas a level of vacant space of around four per cent, the majority withinthe University of Technology campus, primarily within the ChemicalCentre. More premises will become vacant over the next year althoughactivity in the immediate area is considerable and there are agenciesthat are interested in premises in this area. The vacant space at theChemical Centre will be the greatest challenge in the future.The Faculty of Odontology is the only Akademiska Hus property inMalmö with a first-rate location for the future, directly beside the newstation for the City Tunnel. Industrial growth in Malmö is good.Malmö is also attracting an increasing number of head offices. Therental market in Malmö is stable with a level of vacant space of lessthan 10 per cent. Akademiska Hus has no vacant space in Malmö.Akademiska Hus Southern Region has properties at three otherlocations: Alnarp, Kristianstad and Kalmar, where Alnarp is the smallestwith the Swedish University of Agricultural Sciences as the largestcustomer. Vacant space there has increased. The attractive greenenvironment and the location within the Öresund region with goodcommunications are factors that could attract customers. Work on adevelopment plan for the area has commenced where the potential forexploitation of certain poorly utilised areas and a new and more distinctentrance to the area are being investigated.Kalmar and Kristianstad are two towns with a stable propertymarket. The Akademiska Hus part of the campus in Kristianstad, atNäsby, is fully let to the University College. The University College isexpected to make more efficient use of its floor space. Further expansionis not likely within the foreseeable future in Kristianstad. In Kalmar,the level of vacant space is six per cent, and half of this has beencovered for 2008. There will probably be an increase in interest onceour new customers have moved in.General facts about the major towns in the regionLund Alnarp Kalmar Kristianstad MalmöPopulation, December 31, 2007 105,286 20,023 61,533 77,245 280,801Increase in population 2007 2,000 589 212 705 4,557Number of full-time students 2006 25,545 781 5,889 4,946 10,413Rent level, A-locations, offices, SEK/m 2 1,400–1,700 1,400–1,700 900–1,150 900–1,200 1,200–1,500 1)Rent trend Stable Stable Stable Stable Incr.Level of vacant space, % 1–4 7–10 5–8 2–5 5–8Vacant space trend Stable Stable Stable Stable Decr.1)Town centre, otherSource: Statistics Sweden, Swedish National Agency for Higher Education and Newsec24 Akademiska Hus Annual Report 2007 | Geographical markets