The Swedish property company Kungsleden AB (publ) is to build a retirement home of approximately 3000m2 in collaboration with the Municipality of Halmstad.

The retirement home will be built during 2004/2005 with an estimated completion date in April 2005, after which it will be leased to the Municipality of Halmstad with a 20-year lease. The rent will be based on the adopted construction cost, which is estimated to be approximately SEK 50 million. Return on investment will be in line with that of Kungsleden's other retirement homes.

"The development and construction of a modern retirement home in collaboration with the Municipality of Halmstad will be an exciting project, and represents a further stage in our investment in retirement properties," comments Jens Engwall, Chief Executive of Kungsleden.

For more information, please contact:
Jens Engwall, Kungsleden’s Chief Executive, tel: +46 (0)8 503 05204, mobile +46 (0)70 690 65 50
Johan Risberg, Kungsleden’s CFO, tel: +46 (0)8 503 05206, mobile +46 (0)70 690 6565