Creating value through the business model - Drivelab Center

The Drivelab Center is a hub for the automotive industry, which is the result of strategic investments, collaborations and long-term development. It is also an example of how operational activities contribute to the real estate business.

Background

Arlandastad Group acquired the Drivelab Center property for SEK 36 million, with the ambition to create a central hub for the automotive industry in Arlandastad. The building, originally constructed in 1999, required extensive renovation to meet the needs of the industry. In 2017, Sweden's largest training company in the automotive industry, Training Partner, moved its headquarters to the facility. The company was acquired in 2020 by Arlandastad Group, which has since turned the business into a profit. Other tenants include BMW and Hyundai.

Result

198 % in project gain

The Drivelab Center is an important gathering point where suppliers, industries and authorities collaborate on events and training in the automotive industry. In 2023/24, additional properties were built. In total, the project has generated a project profit of SEK 356 million, corresponding to 198 percent of the original investment (1, 2).

Created value

  • Acquisition price: -36 Mkr
  • Investments: -144 Mkr
  • Building rights value: 122 Mkr
  • Land value Scandic: 1 Mkr
  • Land value Bankomat and One More: 32 Mkr
  • Land value hotel property: 25 Mkr
  • Valuation: 356 Mkr
  • Total project gain 356 Mkr
  • Total project gain in per cent: 198 %

Business logic

  • Hub for the automotive industry: Drivelab Center connects players in the automotive industry in Arlandastad, which strengthens the strategic importance of the location for the industry
  • Synergies between businesses: The combination of businesses such as education, parking and hotels creates synergies that increase efficiency and value for all parties involved
  • Increased revenues and rents: The synergies and improvements at the site have enabled higher revenues and thus increased rental income for Arlandastad Group, which further strengthens the long-term profitability of the business model

Source of information: Arlandastad Group
1. Valued by Forum Fastighetsekonomi AB, an independent valuation company, which assumes a return on residual value of 6.75 percent2. Only taking into account the land value of the new projects

Excerpt from the company's Års- och hållbarhetsredovisning 2024.