Kungsleden completes divestment to Sweden’s Third AP Fund
Press Release 16 April 2009
Listed Swedish property company Kungsleden AB (publ) is completing its divestment of 50% of the shares of Hemsö to the Third AP (Pension Insurance) Fund. Hemsö owns and manages Kungsleden’s Public Properties in Sweden, mainly retirement home, care and school properties. This transaction was previously announced in a press release on 22 December 2008.
The transaction was conditional on the Swedish Competition Authority’s approval and retained financing, conditions that are now satisfied.
The sales price, which containes slightly fewer properties than previously, is based on a property value of SEK 14.6 bn, against the SEK 15.4 bn reported previously. The sales price exceeds historical cost by SEK 2.1 bn and corresponds to book value. The transaction will affect Kungsleden’s profit for calculating dividends for 2009 by approximately SEK 800 m, unchanged from the previous estimate.
The property holding is well diversified nationwide but concentrated on the major city regions. The transaction involves 239 properties with area of 1,191,000 sq.m., against the previously reported 277 properties with area of 1,326,000 sq.m. In terms of sales price, the property yield is 6.3% based on the operating net 2008, pro forma. Total rental value is about SEK 1.3 bn. From the Second-quarter Interim Report 2009 onwards, Kungsleden will report Hemsö according to the proportional method.
Change of ownership will occur on 4 May 2009.
Thomas Erséus, Kungsleden’s Chief Executive, commented: “with this deal, we can continue to develop and strengthen Hemsö’s already secure position as a partner and landlord on the public property market alongside the Third AP Fund. Simultaneously, Kungsleden will also be more able to exploit business opportunities that arise on the commercial and public property markets.”
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 16 April 2009 at 9 a.m.