In December 2012, Kungsleden sold its remaining 50 per cent holding in Hemsö to AP3 (the Third Swedish National Pension Fund). The transaction was completed on 15 February 2013.
This sale concluded a good investment historically, which instead, will be invested in directly held properties with higher potential returns.
The build-up and development of social services properties started in 2001, and by the end of 2008, represented as much as 58 per cent of Kungsleden’s book value. At the end of 2008, Kungsleden signed an agreement with AP3 regarding the sale of half of its portfolio of social services properties. Subsequently, independent company Hemsö was incorporated in May 2009, which then relocated to its own premises in spring 2011.
For Kungsleden’s part, the participation in Hemsö’s annual profits averaged SEK 300 m since 2009.
The sale was reported coincident with the agreement in December 2012, and a receivable on AP3 was recognised.
On completion on 15 February 2013, Kungsleden received proceeds of nearly SEK 3.4 billion for its shareholding and the shareholder loan issued to Hemsö. Kungsleden also received interest income and half of profits until it transferred possession, with SEK 13 m and 24 m respectively accounted in the first quarter of 2013.