Diös divests correctional facility project in Östersund for SEK 117.5m
Diös has entered into an agreement to divest a project property in Östersund to Stenvalvet. The property comprises an existing vacant building as well as a development project involving both new construction and refurbishment, where the Swedish Prison and Probation Service (Kriminalvården) will establish a new Class 2 correctional facility. Possession is expected to transfer in the third quarter of 2026.
The transaction demonstrates Diös’ ability to create and realise value from existing properties and development rights. The divested project includes a comprehensive refurbishment of the existing building as well as complementary new construction to meet Kriminalvården’s requirements, totalling approximately 5,400 sqm. A 15-year lease agreement has been signed, and the project is scheduled to commence in 2026. In addition to the project, Kriminalvården has signed a separate 15-year lease for office premises of approximately 1,700 sqm in an adjacent Diös-owned property that is not included in the transaction.
“We have been running a planning process for the property for some time. Correctional facilities are not part of our core business, and we are therefore very pleased that Stenvalvet is taking over and continuing to develop the project. The transaction is a natural part of our strategy to create value from vacancies and development rights,” says David Carlsson, CEO, Diös.
“The acquisition allows us to further strengthen our portfolio and create long-term value in Östersund. We look forward to working with the Swedish Prison and Probation Service and developing the property for its new purpose,” says Maria Lidström, CEO, Stenvalvet.
The transaction is subject to a legally binding detailed development plan, approved building permits and approval from the Inspectorate of Strategic Products (ISP), and is expected to be recognised in the third quarter of 2026. Colliers acted as advisor in the transaction.
For further information, please contact:
David Carlsson, CEO, Diös
Phone: +46 10-470 95 01
E-mail: david.carlsson@dios.se
Annie Franzon, Director of Transactions, Diös
Phone: +46 10-470 95 08
E-mail: annie.franzon@dios.se