Kungsleden—acquiring properties for SEK 40 m and divesting for SEK 35 m
Press Release 29 November 2010
Listed Swedish property company Kungsleden AB (publ) is acquiring a site-leasehold right for a purchase price of just over SEK 40 m, at a property yield of 9%, and is divesting two commercial properties for a total purchase price of SEK 35 m, at a property yield of approx. 6.5%. The sales price exceeds book value by SEK 5 m and acquisition cost by about SEK 4 m. This latter amount will be posted to Kungsleden’s profit for calculating dividends for 2010.
The acquired property has gross leasable area of 5,046 sq.m. and a rental value of about SEK 5.7 m. This property is located in Högdalen, south of Stockholm, and mainly consists of office and educational premises. This property has ten tenants, the largest of which are Waldmann and Competens, who together, represent about 50% of total rental value. Waldmann develops lighting concepts for different sectors worldwide. Competens is an adult education provider.
Completion is scheduled for 16 December 2010.
The two divested office and warehouse premises are located in Gustavsberg in the Municipality of Värmdö, and have leasable area of around 3,700 sq.m.
Completion is scheduled for 15 December. The buyer is Grindstugärde AB.
“I am pleased to be able to purchase at a yield of 9% and sell at about 6.5%. The property we are acquiring has a good location with long-term tenants, which is a guarantee of stable cash flow,” commented Kungsleden’s Chief Executive Thomas Erséus.
Kungsleden AB (publ) 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 29 November 2010 at 09.00 a.m.
For more information, please contact:
Thomas Erséus, CEO Kungsleden | phone 46 8 503 052 04 | mobile 46 70 378 20 24
Johan Risberg, Deputy CEO Kungsleden | phone 46 8 503 052 06 | mobile 46 70 690 65 65
Detta pressmeddelande finns tillgängligt på svenska på 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 September 2010, the property portfolio comprised 559 properties with a book value of SEK 21.8 bn. The holding was located in a total of 130 municipalities, although concentrated on the Swedish provinces of Götaland and Svealand, and the Öresund region. Kungsleden has been quoted on the Nasdaq OMX Stockholm since 1999.