Kungsleden completes divestment to Orkla, upgrades forecast
Listed Swedish property company Kungsleden AB (publ) has completed the sale of 82 commercial properties in Sweden to asset manager Orkla Finans Kapitalförvaltning ASA in Norway and Norwegian investment bank DnB NOR Markets. This deal was previously reported in press releases and in the Third-quarter Interim Report 2007.
The transaction had been conditional on the buyer’s funding, which is now in place.
The sales price of the property portfolio, whose size has changed somewhat, is SEK 4,750 m, which is SEK 375 m above book value and SEK 710 m above acquisition value. This latter amount will be posted to Kungsleden’s profit for calculating dividends for 2007.
The properties are in diverse locations in Sweden. The lettable floor-space, comprising office, industrial and warehouse premises, is just over 751,000 sq.m with rental value of just over SEK 473 m.
Kungsleden will relinquish possession of the properties at the latest 15 January 2008.
With this deal, Kungsleden is also upgrading its forecast profit for calculating dividends for the financial year 2007 from SEK 1,400 m previously to SEK 1,800 m.
Commenting, Kungsleden’s Chief Executive, Thomas Erséus said: “I am delighted to be able to complete this deal with Orkla with very satisfactory profits. I still see attractive opportunities for high transaction levels in commercial properties, and expansion in care, school and retirement home properties.”
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
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 13 December 2007 at 08.50 a.m.