Corem Faces Increased Losses Ahead of New York Property Sale

Swedish real estate company Corem has officially signed an agreement for the sale of its New York property at 417 Park Avenue, following an initial letter of intent in early December, according to Dagens Industri. Initially, the sale was expected to generate a net loss of around 1 billion SEK due to project-related expenses such as demolition and design. However, the forecast has now worsened, with losses projected to rise to approximately 1.45 billion SEK.

Despite the increased losses, the transaction is anticipated to provide Corem with a liquidity effect of about 2.3 billion SEK. The property in question includes an undeveloped lot that has building rights for roughly 33,000 square meters of office space. Corem originally acquired this asset and the associated building rights in 2020 and 2021 for approximately 2.5 billion SEK.

The property transfer is expected to be finalized in the second quarter of 2026, contingent upon Corem fulfilling certain conditions. This development underscores the growing financial challenges involved in corporate real estate sales amid shifting market conditions.

Previously, after a positive report day caused Corem's share price to rise double digits, the stock has since fallen back, negating those gains, reflecting market uncertainties linked to such transactions.