Listed Swedish property company Kungsleden AB (publ) is purchasing a public property through Hemsö, its joint venture with AP3 (the Swedish Third Pension Insurance Fund), for a total purchase price of approximately SEK 130 million (approx. 14 million) including transaction costs. The initial property yield amounts to 6.8%.
This property is in Västerås, west of Stockholm, and houses a retirement home and local retail center. Gross leasable area is around 9,000 m², the tenant being the City of Västerås with a remaining lease term of 15 years. Total rental value is about SEK 12 million.
Completion is scheduled for January 1 2012.
"This transaction involves a 15-year lease with the City of Västerås, which ensures long-term stable returns," commented Kungsleden's Chief Executive Thomas Erséus.