Listed Swedish property company Kungsleden AB (publ) is purchasing a commercial property for SEK 194 m including transaction costs. The property yield is initially 7.6%. The rental value is SEK 29 m.
The property, Swedenborg Center, is located in Trollhättan, north of Gothenburg and has leasable area of 29,200 sq.m., mainly comprising offices, care and residential premises. The buildings are of a very high standard because of their original usage as Trollhättan Hospital.
The south-western corner of the property is made up of approximately 30,000 sq.m. of forest, which Kungsleden thinks has the potential for subdivision, and after detailed planning, will generate development rights for residential properties with total area of 10,000 sq.m.
Among the tenants are The City of Trollhättan, offices and restaurants with a number of tenants, such as Siemens, Bygg 6:an and the elevator company Kone Hissar. Part of the leasable area consists of Student housing and consulting premises. Upon completion, the property will have a vacancy level of approximately 15%. Kungsleden expects most of the floor space to be lettable to local businesses.
Completion is scheduled for 22 June 2011.
“The purchase provides us with a property that should be the template for a property with a lot of opportunities. The base is a stable cash flow, with residential property, the City of Trollhättan as tenant and the objective of increasing the property yield as a result of active letting efforts. There is additional potential to create development rights,” commented Kungsleden’s Chief Executive Thomas Erséus.
For more information, please contact:
Thomas Erséus, Chief Executive| tel +46 (0)8 503 052 04 | mobile +46 (0)70 378 20 24
Johan Risberg, Deputy Chief Executive Kungsleden | tel +46 (0)8 503 052 06 | mobile +46 (0)70-690 65
This press release is available in English at www.kungsleden.se
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 8 June 2011 at 2:00 p.m.
Kungsleden’s strategy is to ensure sustainable high and stable returns proceeding from its existing holding, and through acquisitions and divestments. As of 31 March 2011, the property portfolio comprised 629 properties with a book value of SEK 25.5 bn. The holding was located in approximately 141 municipalities, although concentrated on the Swedish provinces of Gotaland and Svealand, and the Oresund region. Kungsleden has been quoted on the Nasdaq OMX Stockholm since 1999.Regulatory