Kungsleden makes SEK 130 m of property acquisitions
Listed Swedish property company Kungsleden AB (publ) is acquiring two properties for a total purchase price of SEK 130 m including transaction costs.
One warehouse property is being acquired in Umeå, Northern Sweden, from DCAP Sverige AB. This property has total lettable floor-space of 11,785 sq.m., with Aditro Logistik renting approximately 80% of the premises. The weighted average contract term for the whole property is about 4.5 years. Rental values are over SEK 8.9 m, and the estimated initial property yield is approximately 8.5%.
Kungsleden is also acquiring a property in Bromma within the Stockholm city boundaries, from construction consortium NVB group (NCC-Veidekke-Besqab). This property is an independent school with lettable floor-space of 2,410 sq.m. The school building will be extensively renovated, and operate as the Raoul Wallenberg School.
The rental agreement has an eight-year term with a five-year extension option. Rental value is approximately SEK 3.6 m and the estimated property yield is 7.3%.
Kungsleden will take possession of the Umeå property on 22 April, and the school when the tenant takes up occupancy in August 2008.
“These properties will generate high and stable returns for many years 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 17 April 2008 at 9 a.m.