Kungsleden divests property, signs rental agreement with Lindex
Listed Swedish property company Kungsleden AB (publ) has divested a property in Partille, near Gothenburg, to a private company. The sales price of SEK 50 m is more than SEK 5 m over book value and is SEK 27 m above acquisition value. This latter amount will be posted to Kungsleden’s profit for calculating dividends for 2007.
Part of the property was sub-divided coincident with the sale, which Kungsleden has retained. A new distribution centre for northern European fashion retail group Lindex is now being built on this site. Kungsleden has signed a 15-year rental agreement with Lindex for the building, which has total floor-space of approximately 14,000 sq.m. Kungsleden is investing almost SEK 100 m in total for Lindex, and the remaining property is estimated to yield about 7.7% after the investment. The customer is scheduled to move in in September 2007.