Amasten in English
THIS IS AMASTEN
Amasten is a property company focusing on residential properties but also owns commercial premises and offices. The portfolio is focused on Helsingborg, Finspång and Strängnäs, as well as a number of smaller towns in Skåne and Blekinge, and in the Sundsvall region and western Mälardalen. The market value is approximately SEK 2.5 billion, with an express ambition to expand the portfolio further in the years ahead. At present, some 65% of the portfolio consists of residential properties. The company’s guiding principles are strong customer relations, expertise and commitment.
Amasten acquires, manages and develops properties in small and midsize towns with moderate to high property yields, favourable growth prospects and a stable rental market. The prioritised regions are within commuting distance of cities with universities/colleges and regional capi- tals, with Amasten’s locations forming clusters around major urban areas.
Amasten aims to manage properties in an ethical and envi- ronmentally aware manner based on the core values of hav- ing tenants who feel good and are content living in the company’s properties, thus ensuring Amasten’s commercial success. The company aims to secure a property holding with a market value of at least SEK 4 billion within a three-year period. A larger portfolio will result in an increased and more stable underlying cash flow, thus facilitating financing by borrowing and raising capital.
General aims and guiding principles
- Balancing risk by ensuring a mix of sectors and towns.
- Value-creating property management that improves cashflows and raises the value of properties.
- Dynamic and profit-driven portfolio composition.
- Generating stable annual returns over an economic cycle.
- Return on equity over a five-year period of 10-12% annually.
- Long-term loan-to-value (LTV) ratio of less than 70%.
- Long-term interest-coverage rate on bank financing exceeding 150%.
- Listing on Nasdaq’s main list in 2017.
To continue to expand the property holding based on long- term property management that improves rental potential and increases the efficiency of operating and management expenses. As a result, strong cash flows and heathy value growth will be generated over time.
Amasten will continue its expansion focusing on towns that form clusters around major university cities and regional capitals in its existing South, Central and North regions. This includes densification of the property holdings in cer- tain existing locations, while evaluating potential acquisitions in new towns in existing regions. The strategy also allows a degree of flexibility in order to capitalise on attractive business opportunities when they arise.
As of 31 December, the South Region (34%) consisted of a number of towns in Skåne and Blekinge, with the largest holding located in Helsingborg. The Central Region (44%) consists of the Mälardalen portfolio, and Finspång and Karlskoga; with the two latter towns in close proximity of the cities of Norrköping and Linköping, and Karlstad and Örebro, respectively. The North Region (22%) is the smallest region, currently com- prising holdings in Härnösand, Timrå, Falun and Sollefteå, with Sundsvall serving as the regional power- house.
Amasten’s main focus is to acquire, manage and develop properties to ensure that residential properties account for approximately two-thirds of the portfolio and commercial properties for one-third.