Press Release 30 September 2010

By buying back its banks’ rights to cancel interest swaps, listed Swedish property company Kungsleden AB (publ) has extended its average fixed interest term from 2.6 years to 5.3 years.

At the mid-point of the year, Kungsleden had a nominal amount of some SEK 7.3 bn of cancellable swaps, which through the repurchase of cancellation rights, were converted to standard interest swaps. After these repurchases, Kungsleden’s average interest expense increased by nine basis points to round 5.1%. Kungsleden’s interest rate maturity now consists exclusively of fixed interest, as illustrated by the following table.

"These repurchases increase Kungsleden’s financial freedom to act for a very reasonable cost. Meanwhile, we are continuing to evaluate complementary credit alternatives like bonds," commented Kungsleden’s Chief Financial Officer Johan Risberg.

As of 30 June 2010         New maturity
Maturity Loan, SEK m Interest derivatives Share % Ave. interest %   Interest derivatives
2010 14 139 7 350 47,8% 5,9%    
2011     - -    
2012   400 2,8% 4,4%   400
2013   2 000 14,1% 4,2%   3 800
2014   1 500 10,6% 4,2%   2 100
2015   1 800 12,7% 4,3%   3 600
2016   400 2,8% 4,4%   1 000
2017   300 2,1% 4,5%   300
2018   1 000 7,1% 4,5%   3 550
Grand Total 14 139 14 750 100% 5,0%   14 750
             
Ave. interest after option redemption 5,1%    
Regulatory

For more information, please contact:
Johan Risberg, Deputy CEO Kungsleden | phone 46 8 503 052 06 | mobile 46 70 690 65 65
Thomas Erséus, CEO Kungsleden | phone 46 8 503 052 04 | mobile 46 70 378 20 24


This press release is available in Swedish at www.kungsleden.se Kungsleden’s strategy is to ensure sustainable high and stable returns proceeding from its existing holding, and through acquisitions and divestments. As of 30 June 2010, the property portfolio comprised 559 properties with a book value of SEK 21.9 bn. The holding was located in a total of 129 municipalities, although concentrated on the Swedish provinces of Götaland and Svealand, and the Öresund region. Kungsleden has been listed on Nasdaq OMX Stockholm since 1999.