Listed Swedish property corporation Kungsleden AB (publ) has consummated the sale of 172 commercial properties to Danish property fund Keops A/S. The transaction was conditional on the acquirer's funding, which has now been completed.
The property portfolio is being sold for over €620 million (SEK 6.3 billion), approximately €120 million (SEK 1,170 million) above book value and approximately € 150 million (SEK 1,470 million) above acquisition value. This latter amount will be included in Kungsleden's profit for calculating dividends for 2006, and posted as income in the 4th quarter.
Ownership of the properties will transfer on 1 November 2006, and pursuant to IAS 18 Revenue, definitive revenue recognition will be as of this date.
"We're pleased to be able to complete this deal now, with very satisfactory profits," commented Kungsleden's Chief Executive Thomas Erséus. "We now note good expansion opportunities in the care and schools segments. Meanwhile, we'll be able to maintain high transaction levels on commercial properties."