Press Release 14 December 2005
Listed property company Kungsleden AB (publ) is divesting its site leasehold Göta Ark 18 in Medborgarplatsen, central Stockholm.
This property is being divested to GE Real Estate for SEK 446 m. It comprises nearly 19,000 sq.m. of lettable floor-space, with a rental value of SEK 43 m. Possession changes hands on 16 December.
Additionally, Kungsleden is selling three properties in Malmö for SEK 75 m, comprising a total of 3,800 sq.m. of lettable floor-space, primarily consisting of various types of short-term housing and retirement homes, with a rental value of SEK 6.2 m.
The above divestments imply a capital loss of SEK 25 m and a realised value change of SEK -18 m.
Additionally, Kungsleden is acquiring the property with designation Nacka Sicklaön 126:4, east of Stockholm, from construction company Byggmästaren UJ Johansson AB, for SEK 58 m. The property has an estimated property yield of 7.1%, and comprises 2400 sq.m. of lettable floor-space with a rental value of SEK 4.7 m. This property is a school, and is let to independent schools operator Kunskapsskolan in its entirety.
Kungsleden is investing SEK 64 m in a new school in Vallentuna north of Stockholm, the tenant being Vittra, another schools operator, with a 15-year rental contract, which will move in during August 2006. This investment is governed by the letter of intent the parties signed coincident with Kungsleden’s acquisition of schools earlier in 2005. At completion, this property will comprise approximately 3,000 sq.m. of lettable floor-space with a rental value of SEK 5.8 m.