An Extraordinary General Meeting was held on 16 September 2014. The Extraordinary General Meeting resolved to approve the Board of Directors’ decision on a rights issue with preferential rights for existing shareholders.
In early 2013, Kungsleden launched a new strategy with the goal to become the most profitable and successful real estate company on the market. One part of the new strategy is to create a larger, geographically more concentrated, high quality property portfolio within selected property segments and geographical regions which are characterised by good economic growth and demand for premises. The company’s goal is to generate an attractive total return and the ambition is to grow the property portfolio to a value of approximately SEK 30 billion.
Throughout 2013 and 2014 a number of large successful property acquisitions have been carried out in accordance with the new strategy, while properties deemed non-strategic have gradually been divested. In Kungsleden’s view, there are currently attractive acquisition opportunities that would fit the company’s long term strategy.
Consequently, the Board of Directors has resolved to, subject to the approval by an Extraordinary General Meeting, launch a rights issue of approximately SEK 1.5 billion before issue costs in order to increase Kungsleden’s financial flexibility and facilitate the company’s ability to realise its growth plans and thereby create additional shareholder value.
The reason for the rights issue is to enhance the financial flexibility and facilitate the company’s ability to realise its growth plans and thereby create additional shareholder value.
“We see that there are good acquisition opportunities in the market which fit Kungsleden’s long term strategy. The new issue gives us the opportunity to increase the growth rate where the mid-term goal is to reach a profit before tax of SEK 1.0-1.2 billion no later than 2017. Focus will be on clustered real estate portfolios and the 18 defined micro locations where we see growth potential for rents as well as returns”, says Biljana Pehrsson, CEO of Kungsleden.