Vasakronan – summary of 2023

Here is an overview of Vasakronan’s operations together with a brief summary of the past year. A more detailed report is available in the Annual and Sustainability Report 2023, which is available as a searchable and clickable PDF.

Sweden’s leading property company

Vasakronan is one of Sweden’s largest property companies and one of the world’s most sustainable. The company is owned by the First, Second, Third and Fourth Swedish national pension funds. We own, manage and develop 2.4 million square metres across 166 high-quality properties in prime locations and areas in Sweden’s four largest growth regions – Stockholm, Uppsala, Gothenburg and Malmö.

Vasakronan’s assignment

Is to generate a high, risk-weighted return for our owners, the First, Second, Third and Fourth Swedish national pension funds. Though never at the expense of the environment and people. A return that will benefit Sweden’s current and future pensioners.

We take responsibility

For our environmental impact and for all of the people who are affected by our business. We do so by creating good work and urban environments and by applying fair work conditions. It goes without saying that we also say no to any form of discrimination.

We create value

By developing our properties, neighbourhoods and areas with the goal of making them attractive and sustainable. We work strategically over the long term and take responsibility for creating environments that people want to be in. This creates significant value for our customers, our owners and society at large.

A3, stable outlook
Credit rating Moody’s
SEK 9.5 billion
Contracted annual rent
Environmentally certified properties
SEK 175 billion
Property value

Statement by the CEO

Vasakronan ready for new investments

2023 was another eventful year marked by uncertainty and turbulence in the operating environment. Vasakronan’s CEO, Johanna Skogestig, notes that the company has nevertheless shown resilience.

“Of course, we are not unaffected by either the recession or higher interest rates, but we have a property portfolio and an offering that well meets market demand. Our stability and financial strength allow us to focus on our business to prepare for the future and invest when our competitors cannot.”

Read the Statement in full here

Summary of 2023

We have always had high ambitions for our operations. This has led to results, but our aim is to always improve. We work on broad fronts and strive to conduct the company’s operations with a pervasively sustainable approach. This is good for people, the environment and the bottom line.

Strong credit rating

Moody’s affirmed Vasakronan’s rating of A3 with a stable outlook during the year. The rating is motivated by factors such as the strong ownership structure, good access to liquidity and the property portfolio’s high quality as well as by the high proportion of public sector tenants.

The rating is an important precondition for ensuring access to financing and reaching our goal of a diversified financing structure, and during the year a total of SEK 10 billion was raised in the bond market. Even though interest expenses increased due to higher interest rates, the interest coverage ratio amounted to a multiple of 3.8 with a loan-to-value ratio of 42%.

New green framework

November marked ten years since Vasakronan issued the world’s first green corporate bond. The market and Vasakronan have both evolved in the past decade and we have now seen the addition of the EU Taxonomy. For these reasons, we decided during the year to launch a new green framework. It is adapted to the Taxonomy’s more stringent criteria for energy efficiency in existing property portfolios and includes thresholds for carbon emissions from the building phase in new construction and redevelopment projects.

Improved income from property management

The year was impacted by nervous financial markets, high inflation and raised interest rates in combination with geopolitical turmoil in the operating environment. Demand for Vasakronan’s products has been strong despite the prevailing uncertainty among many businesses and individuals. This means that we continued to deliver stable figures in the underlying operations, with increases of 15% in the operating surplus and 8% in income from property management.

Sustainable urban development

Project operations remain an important component of business and we have continued to work on our major development areas. In Gothenburg, our focus is on Lilla Bommen, where we have several excellent lettings. Not least with SEB, which led to construction starting for the project development Kaj 16. With 12 of 16 floors made entirely of wood, Kaj 16 will be Vasakronan’s second – and largest to date – new construction project with a focus on construction in wood.

Södra City in Uppsala is another one of our major urban transformation projects. Construction continues of the Lumi property, the first stage of which is now fully let and will be completed in 2024. Lumi is one of Sweden’s most ambitious reuse projects where we have successfully investigated opportunities for large-scale reuse in order to guide the market towards more circular business models.

Our vision – Future-proof cities for everyone, where people and companies thrive.

We own properties and develop areas and urban environments into dynamic locations that are attractive and sustainable over the long term. Our offering of premises creates preconditions for people and operations to perform at their best. Clear strategies for investments, customers, financing and employees allow us to create the best preconditions for offerings, properties and areas that are sustainable today and tomorrow.

To accomplish our assignment, and to ultimately achieve our vision, we must create long-term sustainable value. Both in the business and for our stakeholders.

Read more about our business model

Properties in prime locations

High-quality property portfolio and largest property owner in the city centre

Our property holdings are focused on modern, sustainable, flexible and centrally-located properties with office and retail space in parts of Sweden with healthy economic growth. The property portfolio focuses on attractive areas with good transport links and excellent possibilities for developing properties, streets and neighbourhoods as a cohesive whole. In all of these cities – Stockholm, Uppsala, Gothenburg and Malmö – Vasakronan is the largest property owner in the city centre.

At the end of the year, property holdings amounted to 166 properties with a market value of SEK 175 billion.

 Overview of our sub-markets and our portfolio by city

The preferred choice for our customers

With customer’s needs at the centre, we continuously explore and develop new solutions to achieve our goal of being the preferred choice for tenants looking for office or city retail premises.

The basis of Vasakronan’s offering comprises flexible premises in great properties with attractive locations and good transport links.

The considerable diversity of our tenants, industries and maturity structure limits the scope of risk in the lease portfolio. No single tenant accounts for more than 3% of the total contracted rent, and the ten largest tenants account for only 18%. Broken down by sector, public sector tenants account for 24% of the contracted rent.

SEK 9.5 billion
Contracted annual rent
3,3 years
Average remaining lease term
Occupancy rate
Renewal rate

Good access to financing

For property sector operations, access to financing on favourable terms is critical for achieving long-term high yields over time. Our borrowing strategy is based on having a diversified financing base through borrowing, both in the capital markets and from banks, while maintaining a healthy reserve in the form of a credit facility arranged with the company’s owners.

We are Sweden’s largest issuer of green corporate bonds and commercial paper, and of the total loan portfolio, the share of green financing is 83%.

A strong credit rating is an important precondition for ensuring access to financing. In 2023, Moody’s affirmed Vasakronan’s rating of A3 with a stable outlook. The rating is motivated by factors such as the strong ownership structure, good access to liquidity and the property portfolio’s high quality as well as by the high proportion of public sector tenants.

SEK 76 billion
Total borrowings
Interest coverage ratio
Loan-to-value ratio
Average interest rate

Sustainable urban development – places where people want to be

As a city developer, Vasakronan wants to create the best conditions for organisations who want to be seen and operate in the city. We do this in a variety of ways. Sometimes this is achieved through major structural changes, and other times by creating a favourable mix of activity, services, retail and cultural spaces at street level.

When we renovate or build new properties, we do so sustainably and with the goal of developing the best products in prime locations – and always from a holistic perspective. As one of the major property companies, Vasakronan often contributes to the development of entire neighbourhoods or areas in the cities where we conduct operations. Examples of such areas include Sergelstan in Stockholm, Lilla Bommen in Gothenburg and Södra city in Uppsala.

The Sperlingens Backe 45 project at Stureplan and the Sergelgatan project in central Stockholm were completed during the year. Sperlingens Backe 45, located by Stureplan, has been redeveloped and refurbished to new condition for a total investment of SEK 430 million. Sergelgatan has undergone a complete redevelopment with upgraded premises for food, meetings and retail as well as completely new office premises and a conference facility. The redevelopment of Sergelgatan includes the lower storeys of Hötorgshus 1–4 and an investment of SEK 1,925 million.

At the end of 2023, the total investment volume of ongoing property projects amounted to SEK 6,831 million (5,680), of which SEK 3,230 million (3,388) or 45% (59) had been capitalised. The occupancy rate for the major projects was 66% .

Read more about how we develop cities

Our responsibility

Doing everything we can to become more sustainable is a prerequisite for delivering on our owners’ assignment and for achieving our vision to create future-proof cities for everyone, where people and companies thrive. For these reasons, we started working with sustainability matters a long time ago and have integrated sustainability into our operating activities. Our high-set ambition of being one of the world’s most sustainable property companies requires everyone to continually contribute.

Our efforts are based on an extensive analysis of our operations. In 2023, it was performed using the ESRS requirements as a basis to prepare the company for the new EU legal requirement, the CSRD. In the analysis, we have identified the most material sustainability matters for our business. We have previously adopted a Roadmap for climate neutrality throughout the entire value chain by 2030. Achieving this requires that we work together with our customers and suppliers.

Our operations affect thousands of people: our employees, suppliers and everyone in and around our properties. Our operations are only sustainable if we ensure safe, secure and healthy work environments with good working conditions where everybody receives equal treatment.


Read more about our responsibility

Environmentally certified properties
73 kWh/sq. m.
Specific energy consumption
Circularity index (share of reused, renewable and recycled material)
Accident frequency in major projects (per million hours worked)

Would you like to read our annual and sustainability report?

Annual and Sustainability Report 2023