Listed Swedish property company Kungsleden AB (publ) is purchasing part of the property Studentkåren 1, also known as Sparta, in the southern Swedish city of Lund, for a total purchase price of approximately SEK 173 m excluding transaction costs. The initial property yield is around 8 per cent.
The vendor, AF Bostäder, will be undertaking a conversion to what is defined in Swedish law as a 3D property (where, as well as vertical division by footprint, a property can also be divided horizontally), with Kungsleden purchasing the commercial portion, which consists of retail, office and educational premises. The other part of this 3D property consists of student accommodation.
This property has gross leasable area of about 19,851 sq.m. and the approximate rental value is SEK 23 m. The largest tenants are ICA, the University of Lund, AF-Bostäder, Samhall and Actic Sverige AB.
“By purchasing the commercial portion of Sparta, we are taking a significant next step in Kungsleden’s investment programme. Basically, its property yield, segment and geographical location fit our new business strategy precisely. In addition, this property enjoys an attractive micro-location between the university campus and the Ideon quarter of Lund, with the opportunity to create attractive development rights on the property,” commented Anders Kvist, Interim Chief Executive of Kungsleden.
Completion is scheduled for 1 October 2013.
Lund Studentkåren 1Regulatory
For more information, please contact:
Anders Kvist, Interim Chief Executive Kungsleden | phone 46 8 503 052 11 | mobile 46 70 690 65 63
Detta pressmeddelande finns tillgängligt på svenska på www.kungsleden.se/pressmeddelanden
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 28 June 2013 at 11:00 a.m.
Kungsleden’s business concept is to own, manage and enhance properties in Sweden’s growth regions, and to generate sustainable high and stable returns. The focus on value creation is by satisfying customers’ needs for premises, managing and enhancing properties, and optimising the company’s property portfolio. Kungsleden has been quoted on Nasdaq OMX Stockholm since 1999.