Swedish listed property company Kungsleden AB (publ) has signed a purchase agreement with Orkla Finans Kapitalförvaltning ASA in Norway and DnB NOR Markets regarding the sale of commercial premises in Sweden, amounting to approximately SEK 5 billion. Kungsleden informed the market about the deal 27 September 2007. Following completion of due diligence, some changes have occurred in the structure of the property portfolio. The selling price exceeds the book value by SEK 400 m and the acquisition value by SEK 750 m.

The purchase agreement involves the sale of two sub-portfolios. Portfolio 1 comprises 30 properties with a lettable floor-space of 280,000 square meters at a value of SEK 1,650 m. The selling price exceeds the book value by SEK 160 m and the acquisition value by SEK 300 m.

Portfolio 2 comprises 55 properties with a lettable floor-space of 520,000 square meters at a value of SEK 3,350 M. The selling price exceeds the book value by SEK 240 m and the acquisition value by SEK 450 m.

The above sale of property portfolios is conditional upon the financing of each sub-portfolio until 12 December 2007.

“I regard this as a good transaction for Kungsleden and our assessment is that it will be completed,” comments Kungsleden’s CEO Thomas Erséus.