Welcome to Atrium Ljungberg's Q1 presentation. The headline for this report is, "The profit for the first quarter is stable, but the future impact of the coronavirus pandemic is difficult to assess." To start, I want to update you on our overall key figures. The property value at the end of the year was SEK 48 billion and the contracted annual rent SEK 2.5 billion. Offices is our largest segment with 50% and the contracted annual rent. The occupancy rate was still 93%. We did two major deals during the first quarter. First, we sold Farsta Centrum for SEK 4 billion. The agreement was conditional upon a review by the competition authority and has now been obtained. All conditions are met for sale, and we will leave Farsta Centrum on June 1st. The results will be reported in the second quarter.
The other big deal we did was when we returned the land allocation Hamnmästaren of 20,000 sq m for offices in Slussen in favor for a new Nobel Center. In compensation, we have received several land allocation. In Slussen, we received 8,000 sq m for a retail site and 4,500 GFA for a hotel. In Hagastaden, we received a land allocation of 23,000 GFA offices and 310 condominiums. Finally, 4,000 GFA in the Slakthusområdet for a hotel. In the first quarter, we also decided to carry out a refurbishment of the Katarinahuset in Slussen. The property were acquired in the beginning of 2019 and have been preparing for a renovation since then. The investment amounts to SEK 980 million. Finally, we signed an agreement on green bank loan with a Nordic Investment Bank of SEK 920 million.
I think many of you are wondering what our key figures will look like after the sale of Farsta Centrum. If everything else is equal, then the property value amounts to SEK 44 billion and our contracted annual rents amounts to SEK 2.3 billion. Offices will account for 54% of the contracted annual rents, and the contracted annual rents for retail will be reduced to 21%. Our loan-to-value ratio will also decrease to 39%. Since retail has an extra focus for the moment, I thought it would be good if we look at how our contracted annual rents for retail of SEK 477 million are distributed in our various areas after we have sold Farsta Centrum. Gränbystaden stands for 32%, Sickla 31%, Mobilia 20%, the rest of Stockholm, which is two properties on Drottninggatan in CBD 14%, and Forumkvarteret in Uppsala 3%.
January and February showed transaction for offices at peak levels for SEK per square meters. At present, we see the stability of the majority of the office tenants, although some industries are affected by the crisis. It is primarily activities within events and conferences, but also certain consulting companies that are affected by reduced demand. For our condominiums, we have now sold 78% of the 68 condominiums we built. The number of impressions has decreased considering the corona pandemic. The project will be completed and moved in in October. The capital market has been very volatile the recent weeks, and liquidity problems have led to many companies having difficulty financing through the capital markets. The retail has been severely affected by the corona pandemic, when consumers have been advised to work at home and not stay among other people.
Due to many layoffs and the fact that the stock market has fallen sharply, we also become more restrictive to consume goods. We have seen a big drop in our retail for the number of visitors in the recent weeks, and the turnover has fallen sharply. Retail, restaurants, and cafes have lost up to 70% of their sales, while groceries, pharmacies, and the Swedish Systembolaget, where you buy wine and alcohol, have increased their sales. The government provided a support package to the affected industry in the end of April, which means that if the landlords give a 50% discount on the rent, the state will pay half of that reduction. However, they are still unclear as to which tenants are covered by the package.
If we were to give 50% discount on all our retailers, restaurants, and cafe operations and receive the state support for all these. It would affect our total rental income by approximately SEK 45 million for the second quarter. In recent weeks, we have faced several bankruptcies and Chapter 11, primarily of businesses in the field of retail. The most difficult question to answer is how long this pandemic will last and what effects it will have on the global and the Swedish economy, both in the short and long-term perspective. I will hand over to our CFO, Martin Lindqvist.
Thank you, Annica. Our net letting amounted to SEK 9 million, of which SEK 20 million comes from project properties. The signed contracts and the cancellations are relatively well spread across our areas. Looking on the consolidated income statement, the rental income increased by 2.4% and property cost increased slightly more than income, greatly due to vacated project properties and low initial gross margins in the Slakthusområdet area. In comparable portfolios, rental income increased by 1.6% and cost decreased by 3.4% due to the mild winter. Central administration was stable compared to the previous year and in project and construction work, the result was slightly better than the comparison period, partly due to slightly increased distribution of development costs to the projects. Net interest rises due to higher borrowings, and we write down our retail properties by approximately SEK 1.5 billion. More about that later.
If we look on rental income and property cost in comparable portfolios, rental income increased by 1.6% while cost decreased by 3.4%, much related to the mild winter. The high cost level in project properties is related to the vacancies mainly in Katarinahuset at Slussen, but also low initial operating nets in the Slakthusområdet area. Looking on income growth and surplus margins, the development in comparable portfolios revenues is distributed on office properties by plus 4.6% and minus 2.4% on retail properties, quite evenly distributed among our areas. Last year, we had some traction from increased property tax rates that we billed out. Even with that in mind, this is a negative development for retail properties. The surplus ratio increased to 67%, as you see in the chart to the right there.
This is stable against the previous quarter one. As of this report, this is excluding land leasehold fees in accordance with IFRS 16. Looking on investments, during the quarter we invested SEK 570 million. There we have the long-term ambition to be above SEK 2 billion per year over time. We have not yet noted any major disruptions in our projects due to, for example, missing material deliveries or illnesses. When we look on property values, usually we do a desktop valuation in Q1. In this quarter as well. Because of the increased uncertainty, we have met four different external valuation companies to understand and get a feel for the level, partly on the total, of course, and also on the yield requirements. The uncertainty in these figures is greater than usual. As you see, we write down our property values by SEK 1.5 billion.
A quick look on the consolidated assets. Just want to point out that our property portfolio now consists of partly investment properties, partly development properties, and partly also now assets held for sale, which corresponds to Farsta Centrum. We look on the financing. We see that we now have a new piece in the pie chart. It is a green unsecured bank loan with a Nordic Investment Bank of SEK 920 million, which is linked to the Life City project. On the next page, we see that our average interest rate remains at a low 1.6%. The loan-to-value ratio has risen slightly linked to the negative revaluation of our retail properties. However, that figure will improve, as Annica mentioned, when the liquidity for Farsta Centrum enters our books in the second quarter. Annica.
We have a large and interesting project portfolio, after the agreement with the Stockholm Municipality now enables investment of approximately SEK 32 billion, where SEK 4 billion is for confirmed projects. If we're looking at the potential projects of SEK 28 billion, these investments will mostly be in Sickla in Nacka, Slakthusområdet in Stockholm, in Gränbystaden in Uppsala, and in Slussen in Stockholm, and where offices represent the biggest kind of investment. As Martin mentioned, so far our projects are performing well. We see very little effects on the corona pandemic. SEK 23 billion worth of our project portfolio are situated near an existing or future underground station in the Stockholm area. It is apparent that office properties with direct underground links have rental levels approximately 30% higher than equivalent office projects just a kilometer further away. Our future investment in municipalities with strong growth are also creating long-term security in our business.
Let's look closer at our project portfolio, starting with Sickla. Sickla is one of our most prioritized area with a large part of our future project portfolio. The construction of Curanten in Sickla is underway and will become a healthcare destination with stores, cafes, and restaurants on the ground floor. The project comprises 11,700 sq m and most of the areas for healthcare. Occupancy is planned for the end of this year. Another project in Sickla is Tapetfabriken. This is a hotel that will be next to Marcusplatsen. The project is fully let to Nordic Choice Hotels. It will be a total of 240 hotel rooms and a public lobby. The hotel will be completed in the spring of 2021. At Nobelberget in Sickla, we will build a total of about 500 condominiums.
We have launched the sales for 68 apartments in the phase I, and as I mentioned earlier, we have now sold 78% of them. Completion of the project is in the end of this year. In Gränbystaden in Uppsala, we have decided to continue with rental apartments in the area. Gränby Park kvarter one comprises 44 rental apartments with commercial premises on the ground floor. Schedule for completion is the first half of 2021. In Mobilia in Malmö, as you know, we are adding 71 rental apartments and the cultural activities to the site. There will be a 4DX cinema, but also a cultural center for children. One of our biggest projects are Life City in Hagastaden. The building is to be the clear choice of meeting place for everyone working in the life science segment in Hagastaden. The major tenant will be Academic Work.
The property is in the emerging life science cluster close to Nya Karolinska Solna, and the project's going to as planned, and Academic Work will move in in December 2021. The project will be fully completed during the spring 2022. Our project in Veddesta in Järfälla is under construction. The phase I comprises 24,000 sq m and includes an upper secondary school, culture, sports, and businesses. The major tenant is Järfälla Municipality of 11,000 sq m. The project will be completed in the spring 2022. During the first quarter of this year, we decided to renovate the Katarinahuset in Slussen. We took possession of the property in early 2019 and have since then planned for projects. After renovation, the house will feature state-of-the-art offices with a unique view, a hotel, and several restaurants. The investment amounts to SEK 980 million and will be completed 2023.
By that, we close our Q1 presentation, and if you have any questions, you can send an email to me or Martin. Thank you very much, and goodbye.