Historically, Kungsleden has featured a brisk rate of change and high rate of turnover in its property portfolio. As part of the Retriva AB and Securum AB groups, Kungsleden’s assignment was to liquidate substantial property holdings.
In 1996 to 1997, the company consummated over 500 property divestments to external parties, involving over 800 properties with an aggregate value of approximately SEK 4,600 m. In December 1997, former main owner, the government-owned Agilia Holding AB, span off Kungsleden to a group of institutional investors.
New Business Concept and IPO
The business concept was realigned to Kungsleden owning and managing properties to generate high and stable long-term property yields. The vision of utilising and enhancing the company’s skills in structuring heterogeneous holdings was linked to this business concept. When ownership changed hands, the ambition to float Kungsleden was also established.
Kungsleden was named after Sweden’s famed 450 km arctic hike, and is intended to allude to the long march of one of Sweden’s ancient kings, enjoying a broad perspective, with the benefit of overview and objectives clear in the distance.
Kungsleden in 1999 - 2009
During 2009 Kungsleden celebrates ten years as a listed company. At its initial public offering (IPO) in 1999, Kungsleden owned SEK 5 bn-worth of properties with an operating net of SEK 403 m. Ten years later the property portfolio is five-six times larger — SEK 28.6 bn — and operating net has increased to SEK 1,867 m. Profit was SEK 8,4 m in 2006.
A Transforming Property Market
This progress occurred in an era when the Swedish property market was transforming. But Kungsleden maintained a consistent focus throughout—generating sustainable high and stable returns by continually enhancing its property portfolio and through active management. Kungsleden has rolled out initiatives in new property types like care properties, schools and retirement homes, offering the company attractive opportunities.
Property types
The focus on care, school and retirement homes in recent years is the biggest change to Kungsleden’s property holding. In March 2009, these property types accounted for approximately 59 per cent of total portfolio value. Offices are also still a large property type.