Kungsleden: SEK 111 m of divestments, SEK 74 m of acquisitions
Press Release 6 March 2009
Listed Swedish property company Kungsleden AB (publ) is selling two commercial properties in Lund and two commercial properties in Malmö, southern Sweden, for a total purchase price of SEK 111 m. At the same time, it is acquiring a warehouse property under construction in Mjölby, southern central Sweden, for SEK 74 m in a separate transaction.
The sales price is just above book value and exceeds historical cost by some SEK 28 m. This latter amount will be included in Kungsleden’s profit for calculating dividends for 2009. The divested properties have gross leasable area of approximately 12,500 sq.m. Rental value is about SEK 11.5 m.
The acquired property has leasable area of about 15,000 sq.m. Total rental value is SEK 7.5 m, equating to average rent of approximately SEK 500 per sq.m. Nationwide surplus retailer Överskottsbolaget is letting the property on a 12-year rental contract.
Kungsleden is scheduled to yield possession of the Lund and Malmö properties on 1 April 2009. It plans to take possession of the property in Mjölby on 1 October 2009.
“Getting the year of to a start with two good deals, with sales at prices above historical cost and book value, feels satisfying,” commented Kungsleden’s Chief Executive Thomas Erséus.
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 6 March 2009 at 13.00 p.m.