Borås Wäfveri is selling the company's Ryda properties in Borås to a company wholly owned by two Borås residents, Paul Frankenius and Joakim Hedin.
Current processing operations will be phased out during the autumn and the remaining operations will be moved to Krenholm in Estonia. During the autumn and spring, a refurbishment will take place and the property will be adapted to storage and logistics purposes. Occupancy is expected to begin in spring 2006.
The property comprises 38,000 m² of rentable space and 113,000 m² of land.
The renovations that start in the autumn include new heating systems, the installation of a sprinkler system, new floor areas and new entrances and exits to the property, all in order to meet the demands of the market for a modern warehouse and logistics property.
The transaction amounts to approximately SEK 90 million which includes the purchase price and estimated refurbishment costs.
Joakim Hedin and Paul Frankenius acquired Bockasjöterminalen in February 2004, previously the Paket- och Postterminalen in Borås, which includes approximately 25,000 m² of rentable space. On 2 May this year, Viaredsterminalen, previously Josefssons Postorder, was acquired, which includes approximately 33,000 m² of rentable space. Viaredsterminalen was previously wholly-owned by a company owned by Paul Frankenius.
Together, the three terminals - Rydaterminalen, Bockasjöterminalen och Viaredsterminalen - comprise approximately 100,000 m² of warehouse and logistics space in Borås. Bockasjöterminalen and Viaredsterminalen are completely rented out with long term contracts.
“Borås is clearly on the map in a logistics and warehouse context. Borås’ geographical location, tradition of trade and logistics, labour costs and unique skills are things that speak to its advantage when deciding where to locate the company's logistics department. More and more companies choose to outsource warehouse and logistics to independent companies to focus on their core business instead.
The ownership and management of larger properties in the warehouse and logistics sector located in Borås is a conscious strategy. Companies in Borås area rent approximately 200,000 m² of land for storage purposes outside of their own property. Several players wish to unite in a warehouse instead of being spread out in different places, resulting in significant cost and rationalisation gains.
Rydaterminalen fits well with our strategy that we describe above and the belief that Borås is an important player in the logistics and storage sector. Rydaterminalen will be a modern and well-adapted logistics and warehouse facility after the reconstruction we plan to implement. The creation of Bäckaskogsleden, which is expected to be completed in 2006, will improve access to the property and its location,” said Paul Frankenius and Joakim Hedin.
Until autumn 2001, Joakim Hedin was the principal owner and CEO of IMG AB, listed on the stock market's O-list, when the company was acquired by KF. The business is now run under the name PAN Vision AB. Since autumn 2001 Joakim Hedin has worked with investments in operations and properties as well as board assignments. He also runs a consulting business focused on business take overs and restructuring.
Until autumn 2000, Paul Frankenius was CEO of JC in charge of purchasing. Since autumn 2000 Paul Frankenius has worked with investments in operations and properties. He has also worked as CEO of Kapp Ahl AB since summer 2002.
Bockasjö AB, which is jointly owned by Joakim Hedin och Paul Frankenius, is the parent company of Bockasjöterminalen AB, Viaredsterminalen AB and Rydaterminalen AB.
Questions will be answered by:
Joakim Hedin +46 (0)705 - 21 53 00
Paul Frankenius +46 (0)702 - 70 80 90