Kungsleden has signed a memorandum of understanding with GE Capital Real Estate to acquire 84 commercial properties with an underlying property value of approximately SEK 5.5 billion (approx. €640 million). The properties are mostly office buildings and are largely situated in Stockholm and Gothenburg. The total leasable area is about 567,000 m².
“This property portfolio has a profile which fits very well into Kungsleden´s new strategy which focuses on offices, industrial/warehouse and retail properties in big city areas and other growth regions in Sweden. We will now enter a customary due diligence phase”, comments Biljana Pehrsson, member of the Board and incoming CEO of Kungsleden.
The memorandum of understanding gives Kungsleden the exclusive right to conduct a technical, legal and financial due diligence of the property portfolio. The acquisition is conditional upon no major findings arising during the due diligence process. Signing of the purchase agreement is scheduled for October with the transaction expected to close before year-end. The acquisition does not require Kungsleden to raise any additional equity.