Kungsleden completes SEK 3.6 bn acquisition
Listed Swedish property company Kungsleden AB (publ) has reached a binding agreement regarding the acquisition of the majority of properties of NR Nordic & Russia Properties Ltd. This transaction was previously reported in press releases dated 20 December 2010 and 31 January 2011.
Kungsleden is acquiring 36 properties, 33 of which are located in Sweden, one in Germany and two in Poland, for a purchase price of approximately SEK 3.6 bn including transaction costs. Completion is scheduled for 31 March 2011.
The 36 properties have gross leasable area of 825,000 sq.m., 93% of which is in Sweden. Total rental value of SEK 563 m corresponds to a property yield of about 10%. After completion, this acquisition will contribute around SEK 200 m to Kungsleden’s annual profit for calculating dividends.
This property portfolio consists of office and industrial properties and features stable returns and high-quality tenants. The current vacancy rate corresponds to 5% of total rental value. ABB, representing some 50% of rental value, is the largest tenant, followed by Finnveden AB, with some 10%.
“I’m really satisfied that we’ve completed this transaction at a good yield. Our organisation is ready to start working on these properties, and I take a positive view of Kungsleden’s relationship with ABB strengthening further,” commented Kungsleden’s Chief Executive Thomas Erséus.
Pangea Property Partners is acting as financial adviser and property adviser. Mannheimer Swartling Advokatbyrå is legal adviser.
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 14 February 2011 at 8:00 a.m.
For more information, please contact:
Thomas Erséus, CEO Kungsleden | phone +46 (0)8 503 052 04 | mobile +46 (0)70 378 20 24
Johan Risberg, Deputy CEO Kungsleden | phone +46 (0)8 503 052 06 | mobile +46 (0)70 690 65 65
Detta pressmeddelande finns tillgängligt på svenska på www.kungsleden.se/pressmeddelanden
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.