Listed property company Kungsleden AB is acquiring a holding of a total of 179 properties with an aggregate property value of SEK 5.5 billion (approx. 600m) from Weland Fastigheter and Fågelviks Holding. The holding encompasses 1,000,000 m² of lettable floor-space with rental value of SEK 834 million (approx. 90m).
Kungsleden's Chief Executive Jens Engwall commented: "When we announced the current new issue, we noted that attractive property deals could still be done. Today's acquisitions enhance our prospects of developing Kungsleden in line with our stated strategy through continued property transactions in the acquired and existing holding."
The acquired holding can be grouped into four segments:
Retirement homes and care properties
The acquired holding comprises retirement homes and care properties with a property value of approximately SEK 0.8 bn and total lettable floor-space of 122,000 sq.m., mainly retirement homes in Rosengård, Malmö and S:t Lars, Lund (both southern Sweden) which is also a housing construction project. Overall, retirement homes and care properties have rental value of SEK 114 m and rental revenue of SEK 105 m with a property yield of 7.7%.
SEK 2.4 bn of the acquired holding is housing with total lettable floor-space of 426,000 sq.m., and 81% of this holding is located in the cities and towns of Stockholm, Karlstad, Sundsvall, Norrköping and Gävle. The residential holding's rental value is SEK 344 m with rental revenues of SEK 312 m and property yield of 6.2%.
The acquired holding also encompasses commercial properties in Sweden, with total lettable floor-space of 386,000 sq.m. The commercial properties have an aggregate property value of SEK 1.4 bn, including properties such as retail centre Slagsta Strand in Botkyrka near Stockholm, and municipal centres in Brandbergen and Vårberg, also near Stockholm. The commercial properties in Sweden have a rental value of SEK 275 m, rental revenues of SEK 216 m and a property yield of 8.0%.
The acquired holding also includes 7 investment properties, 6 of which are in Brussels and one in Amsterdam with a total property value of SEK 300 m and a property yield of 6.5%. The holding also includes Manhattan Centre in Brussels, which is a project being let, with a property value of approximately SEK 550 m and an initial property yield of 2%. This project has lettable floor-space of 50,000 sq.m., primarily comprising offices, but also some retail premises and a car park with 650 spaces.
Overall, the acquired holding has a rental value of SEK 834 m, a rental revenue of SEK 681 m and an operating net of SEK 357 m, corresponding to a 6.6% property yield.
Kungsleden takes possession on 1 December 2005, and will take on existing staff of some 100 full-time employees, half of which are janitors. Management of the holding will be integrated into Kungsleden's current regions and service centre.
Kungsleden is currently engaged in a new issue with a subscription period extending until 18 October 2005 inclusive. As a consequence, Kungsleden will register a supplement to its prospectus regarding the Offer to subscribe for shares in Kungsleden AB's new issue 2005.