Kungsleden acquires and builds public properties
Listed Swedish property company Kungsleden AB (publ) is acquiring properties in Katrineholm, Mariestad, Nyköping (all south-west of Stockholm) and Ystad (southern Sweden) in three separate transactions. In addition, three pre-schools are being built for the Municipality of Linköping (south-west of Stockholm). They will be complete in summer 2008.
Total investment cost amounts to SEK 188 m, with an estimated property yield of 8.3%.
The properties have lettable floor-space of 23,370 sq.m. Total rental value amounts to SEK 24.3 m, of which 70% is sourced from the public sector. The average contract term is ten years.
“Having more public properties to consolidate our positioning feels very positive. This contract offers us high and stable returns for many years ahead,” commented Kungsleden’s Chief Executive Thomas Erséus.
For more information, please contact:
Thomas Erséus, Chief Executive, tel +46 (0)8 503 05204, mobile +46 (0)70 378 2024
Johan Risberg, Deputy Chief Executive, tel +46 (0)8 503 05206, mobile +46 (0)70 690 6565
Göran Linder, Divisional Manager, Public Properties, tel +46 (0)8 503 05207, mobile +46 (0)70 690 6575
Kungsleden discloses the information in this press release according to the Swedish Securities Markets Act/and or the Swedish Financial Trading Act. The information was provided for public release on 19 December 2007 at 9:00 a.m. CET.