Creating value through the business model - Scandinavian XPO

Scandinavian XPO runs meetings and events that increase the value of the Group's property for hotels, retail and offices.

In 2017, Arlandastad Group acquired the former hotel, retail and office property Eurostop from Unibail Rodamco for SEK 315 million. After the purchase, the property plans were divided into separate sections for hotels as well as events and meeting activities, through which extensive reconstruction was carried out to meet market demand.

Result

Project profit 56 %

Following the renovations and the establishment of Scandinavian XPO, the value of the property has increased to SEK 1,746 million, resulting in a project gain of SEK 630 million and a project gain of 56 percent on the original investment (1).

Scandinavian XPO has also helped to increase traffic and awareness of Arlandastad by attracting major events. An example of this is the leasing of premises to the Government Offices during Sweden's EU Presidency in 2023.

Created value in the project

  • Acquisition price: -315 Mkr
  • Investments: -801 Mkr
  • Building rights value: 222 Mkr
  • Hotel valuation: 1 155 Mkr
  • Scandinavian XPO valuation: 369 Mkr
  • Total project gain: 630 Mkr
  • Total project gain in percent: 56 %

Business logic

  • Offer flexible venues for meetings and events
  • Scandinavian XPO provides modern and adaptable spaces for companies and organizations that arrange meetings, conferences and events, creating new revenue opportunities for the property
  • Generate increased visibility and visitor flows to the area
  • By attracting high-profile events and creating collaborations with key players, the business attracts visitors and creates valuable exposure for the Arlandastad area
  • Increasing the value of hotels and enabling higher rental income
  • The increased activity in the area and the influx of event participants strengthens the attractiveness of the hotels, which leads to higher occupancy and enables Arlandastad Group to charge higher revenue-based rent for the hotel properties

Examples of initiatives

  • Focus on reuse of materials and furnishings through the rebuilding process, e.g. longstay
  • Measures to improve energy efficiency
  • Development of one of Sweden's largest fast charging stations adjacent to the arena
  • Scandinavian XPO is certified according to the global standard for sustainable events
  • Green leases and collaborations with tenants promote the sustainable development of the area

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 percent

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