Listed Swedish property company Kungsleden AB (publ) has signed a binding agreement with GE Capital Real Estate on acquiring the portfolio of 84 commercial properties, in line with the memorandum of understanding announced on August 15. The price is SEK 5.5 billion (approx. €627 million).
The properties are mostly office buildings and are largely situated in Stockholm and Gothenburg. The total leasable area is about 567,000 m². The transaction is expected to close before year-end.
“This acquisition fulfills our investment target of SEK 5-6 billion within 18-24 months that was set and communicated in the beginning of this year. The property portfolio fits very well into Kungsleden’s new strategy with a focus on quality commercial properties in attractive locations in growth regions,” says Biljana Pehrsson, CEO of Kungsleden.
About 70 % of the portfolio is located in Stockholm and Gothenburg and it will increase Kungsleden’s share of properties in Stockholm, Gothenburg and Malmö to 50 % from 30 % today. The share of offices will increase to 50 % from 39 % today.
The acquisition does not require Kungsleden to raise any additional equity. Debt financing has been obtained from four leading Nordic banks.
Leimdörfer has served as sole financial adviser to the seller GE Real Estate in the transaction.