Kungsleden makes SEK 3.0 bn property acquisition
Listed Swedish property company Kungsleden AB (publ) is acquiring 20 properties from Northern European Properties Ltd. (listed on the London Stock Exchange) for a purchase price of nearly SEK 3 bn. The estimated property yield is approximately 7.2%.
This acquisition consists partly of freezer storage premises fully let to multinational food logistics provider Frigoscandia Distribution AB, and partly of industrial properties largely let to ABB Fastighets AB, the ABB group’s property arm. The acquired properties are mainly located in central and southern Sweden.
Total lettable floor-space amounts to about 445,000 sq.m. Total rental value is
SEK 242 m and the average remaining contract term is about 12.5 years.
Kungsleden is scheduled to take possession in early December 2007.
“The properties in this transaction fully satisfy our investment criteria. With long-term contracts with secure counterparties like ABB and Frigoscandia, we will enjoy secure cash flows and stable yields for a long time 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
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 Tuesday, 27 November 2007 at 9:00 a.m.
Detta pressmeddelande finns tillgängligt på svenska på www.kungsleden.se