Annual report 2004/05

Annual report
Business Area Properties
SkiStar AB (publ)
1 September 2004 – 31 August 2005
SkiStar’s recently formed business area, Properties, will generate profits and make resources
available for the development and construction of new, modern tourist accommodation at
SkiStar’s destinations by selling renovated, older properties.
Responsibilities of the business area
The Business Area Properties has been
operational since January 2005. The
business area’s assignments are to:
• Perform an inventory of and classify
SkiStar’s total property holdings,
• Ensure that all construction within
SkiStar is carried out professionally,
uniformly and cost effectively,
• Ensure that long-term plans for
construction and sales exist
• Continually sell older properties in
order to generate profits and make
financial resources available for the
development and construction of
new, modern tourist accommodation
at SkiStar’s destinations,
• Create business opportunities
through acquiring existing
accommodation and development
land.
Structural properties
Implemented business transactions
Investments are divided into two
groups, investments in facilities for the
ongoing maintenance of the alpine
operations, for example, new ski lifts,
snow systems, premises for ski rental,
restaurants etc., and structural
investments comprised of investments in
developing land and housing with the
purpose of creating future business
opportunities. The Business Area
Properties is responsible for structural
investments. During the 2004/05
financial year, structural investments
amounted to MSEK 171. At the same
time, tenant-owner’s rights, apartments
and land were sold for MSEK 142 with
capital gains of MSEK 45. Major
investments that have been carried out
comprise the acquisition of 145 apartments
in Lindvallen, 35 tenant-owner’s
rights at Högfjället, Hotel Renen in
Duved, participations in the new share
issue in Åre Centrum AB, a real-estate
company that invests in properties in
Åre, construction of 14 apartments in
Lindvallen, the renovation and
expansion of Sälens Högfjällhotell,
and the construction of 6 apartments
in Hemsedal. A total of 29 apartments
in Lindvallen, 35 tenant-owners’ rights
and 21 apartments in Högfjället, as well
as 22 apartments in Hemsedal were also
sold.
Existing structural assets
The table shows the percentage of the
company’s assets attributable to
apartments, hotels and development
land. Apartments and areas with
development land are owned at all
destinations, but primarily in Sälen. The
sale of existing apartments and newly
built, modern apartments, takes place at
a pace at which the market permits and
demands.
Capital gains, MSEK
Hotels, cabins and apartments and development land which is owned
Sälen Åre Hemsedal Vemdalen Total
Hotel 1 1 0 0 2
Existing cabins and apartments 330 148 6 0 484
Land holdings, (number of buildable apartment units)
- detailed development plan established 212 12 0 40 264
- detailed development plans in progress 135 0 250 0 385
- planned detailed development plans 270 50 0 0 320
- planned outlined plans 800 0 0 150 950
Total apartments 1 747 210 256 190 2 403
34 35