Listed Swedish property company Kungsleden AB (publ) has announced that it is acquiring 20 properties from Northern European Properties Ltd. (listed on the London Stock Exchange) for a purchase price of nearly SEK 3 billion (approx. €300 mln.). The estimated property yield is approximately 7.2%.
This acquisition consists partly of freezer storage premises fully let to multinational food logistics provider Frigoscandia Distribution AB, and partly of industrial properties largely let to ABB Fastighets AB, the ABB group's property arm. The acquired properties are mainly located in central and southern Sweden.
The total lettable floor-space amounts to about 445,000 m². Total rental value is SEK 242 million (approx. €24 mln.) and the average remaining contract term is about 12.5 years.
Kungsleden is scheduled to take possession in early December 2007.
"The properties in this transaction fully satisfy our investment criteria. With long-term contracts with secure counterparties like ABB and Frigoscandia, we will enjoy secure cash flows and stable yields for a long time ahead," commented Kungsleden's Chief Executive Thomas Erséus.
Source: Kungsleden
