Press Release 15 January 2007
Listed Swedish property company Kungsleden AB (publ) is implementing a swap deal implying the acquisition of two warehouse properties from KF Fastigheter, the real estate arm of the Swedish Co-operative Society, for a total purchase price of SEK 160 m, while simultaneously divesting an office property in Kungens Kurva, south of Stockholm, to KF Fastigheter, for SEK 95 m.
The warehouse properties are located in Årsta wholesale trading estate, also south of Stockholm, and in Luleå, northern Sweden, and have lettable floor-space of approximately 7,100 sq.m. and 18,400 sq.m. respectively. Their estimated operating net totals SEK 12.3 m, implying an initial property yield of about 7.7%.
The property in Kungens Kurva has an acquisition value of SEK 248 m and book value of SEK 95 m. Kungsleden considers that if retained, this property would have returned a negative operating net for 2007. The acquirer, KF Fastigheter, is already a major landowner in the Kungens Kurva area, and is in a good position to develop the property.
Possession is scheduled to transfer on 2 April 2007.