By Dominic Chopping

STOCKHOLM--Shares in Swedish commercial landlord Corem Property Group slumped on Monday after major tenant Ericsson said it is moving its headquarters.

Corem shares fell 10% in early Stockholm trade.

Ericsson is currently based in Kista, an area north of central Stockholm, and counts Corem as one of its major landlords in a sprawling collection of offices, laboratories, conference facilities and garage space. However, it said Monday it has decided to move its Stockholm operations closer to the city, in a new area developed on the northern city boundary called Hagastaden.

"Hagastaden is clearly best-placed to address our future operations. A thriving city campus will also strengthen our attraction for the top talent of the future," Chief Executive Borje Ekholm said.

The telecom equipment provider said it has signed leases with Atrium Ljungberg and Castellum for five properties in Hagastaden, totaling around 71,000 square meters.

A 15-year lease with Atrium Ljungberg for three properties carries an annual rent of around 360 million Swedish kronor ($38.4 million), while an agreement with Castellum for two properties carries rent of around 80 million kronor a year.

Shares in Atrium Ljungberg rose 3.7%, while Castellum shares moved 2.2% higher.

SB1 Markets analyst Niklas Wetterling said the new lease with Atrium Ljungberg is a major deal for the property company, representing 11% of its expected rental income in 2027.

"The deal is also considered to be somewhat positive for Castellum, which has exposure to Hagastaden, while it is seen as negative for Corem, which owns Ericsson's current headquarters in Kista," Wetterling said.

The process of moving Ericsson employees in Kista is expected to begin in early 2028 and will be carried out in phases over several years.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

May 25, 2026 05:39 ET (09:39 GMT)

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