Kungsleden acquires warehouse and logistics properties
Press Release 13 October 2009
Listed Swedish property company Kungsleden AB (publ) is acquiring five commercial properties for a purchase price of SEK 525 m before deducting for deferred tax. The seller is NLP (Northern Logistic Property ASA) of Norway. Kungsleden sold the corresponding properties to NLP in July 2008 for a net purchase price of SEK 600 m, and in tandem with this deal, Kungsleden issued a promissory note at present worth SEK 386 m. In the current purchase, a low-yielding promissory note is being converted to properties with a significantly higher yield. These properties consist of warehouse and logistics premises located in southern and central Sweden. The gross leasable area is some 109,000 sq.m and total rental value is over SEK 48 m. 50% of rental values are sourced from properties in Mjölby, with nationwide discount retailer ÖoB as tenant. The average remaining contract term of the properties is 8,5 years. Kungsleden will take possession of the properties on 2 November 2009. “These properties fit Kungsleden’s portfolio in terms of their high and stable yield,” commented Kungsleden’s Chief Executive Thomas Erséus, “they’re properties we know well, with good tenants. We sold them last year at a good price, and are now buying them back at a good price.” 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 13 October 2009 at 9:00 a.m.