Kungsleden selling and upgrading forecast
Property company Kungsleden AB (publ) has divested a holding of commercial properties to Danish-based property company Keops. This transaction was previously reported in press releases of 12 April and 23 May 2006.
This property portfolio is being divested for just over SEK 6.3 bn, SEK 1,200 m above book value and SEK 1,500 m above acquisition value. This latter amount will be included in Kungsleden’s profit for calculating dividends for 2006.
The property portfolio comprises a total of 172 properties in locations from Malmö in southern Sweden to Luleå in the north. The total lettable floor-space is approximately 900,000 sq.m. with rental value of around SEK 680 m. The estimated property yield is about 6.5 per cent. The deal is conditioned by the purchasers financing until 31 July 2006.
Kungsleden will transfer ownership of these properties on 3 October 2006.
Coincident with this divestment, Kungsleden is upgrading its forecast profit for calculating dividends for the financial year 2006 from SEK 1,500 m to SEK 2,900 m, or SEK 21 per share.
Kungsleden’s Chief Executive Jens Engwall commented: “A divestment of this scale and healthy profits creates good prospects for expansion in care and schools, while we will also be able to maintain a high transaction level in commercial properties.”