Kungsleden divesting properties for SEK 600 m
Listed Swedish property company Kungsleden AB (publ) is selling five properties to Northern Logistic Property ASA (listed on the Oslo stock exchange). The sale is of five warehouse and logistics properties, with the largest tenants being discount retailing group Runsven AB and women's wear retailer Lindex AB. The properties are mainly located in central and southern Sweden.
Total lettable floor-space amounts to approximately 109,000 sq.m. Total rental value is nearly SEK 47 m.
The sales price of the properties is SEK 600 m, which exceeds book value by SEK 7 m and acquisition value by SEK 51 m. This latter amount will be posted to Kungsleden’s profit for calculating dividends for 2008.
Possession will change hands in the beginning of September 2008.
Kungsleden’s Chief Executive Thomas Erséus commented: “I’m satisfied with this deal and Northern Logistic Property is an obvious buyer for these properties. Over 50% of the rest of Kungsleden’s property portfolio are public properties like retirement homes, schools and care properties. Our commercial property portfolio has long-term contracts and stable counterparties, and only 10% of it consists of offices at present. This provides us with good cash flow and stability.”
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 18 July 2008 at 09:00 a.m.