Kungsleden acquires two retail properties
Listed Swedish property company Kungsleden AB (publ) is acquiring two retail properties for a purchase price of SEK 125 m. The sellers are Möbelhuset i Handen AB and Andersson-Gustavsson Fastighets AB, both owned by Sven-Eric Andersson.
The acquired properties are located in Haninge, south of Stockholm. The total lettable floor-space amounts to approximately 8,810 sq.m., 6,000 sq.m. of which is let to Möbelhuset i Handen AB (franchisee of furniture retailer Mio). Tenant adaptations will be made on parts of the smaller property in 2008 on behalf of BoConcept, also a furniture retailer, who will relocate to the store by 1 July 2009.
The rental value of both properties amounts to just over SEK 10.6 m and the estimated property yield is approximately 7.5%. Both Mio and BoConcept have recently signed 10-year rental agreements.
Kungsleden is scheduled to take possession on 10 January 2008.
Kungsleden’s Chief Executive Thomas Erséus commented: “This is a good example of commercial properties with long-term contracts that provide high and stable yields for many years.”