Kungsleden divests eight properties in Brussels
Press Release 8 December 2006
Listed Swedish property company Kungsleden AB (publ) has signed an agreement regarding the sale of eight properties in Brussels. The sales price is EUR 90.5 m (approx. SEK 815 m), and the buyer is private equity and real estate investment management firm JER Partners in joint venture with pan-European investment, asset management and development group Catalyst Capital.
Until 31 January 2007, the transaction is conditional on the buyers financing of the deal.
The Brussels portfolio primarily comprises offices and the properties have a total lettable floor-space of approximately 72,000 sq.m. The total rental value is SEK 96 m.
The sales price is SEK 20 m below book value and SEK 20 m less than the acquisition value. The earnings from the sale will be accounted in the First-quarter Interim Report 2007 and posted to profit for calculating dividends for 2007.
Kungsleden is scheduled to yield possession of the properties in the first quarter 2007. Subsequently, Kungsleden will not have any property holdings in Brussels.
*Profit for calculating dividends means profit after tax excluding unrealized value changes (that do not affect cash flow) and deferred tax. Profit for calculating dividends includes realized value changes. This profit measure corresponds to the cash flow statement item cash flow from operating activities before change in working capital.