Swedish property company Kungsleden AB (publ) has divested a holding of commercial properties to Danish-based property company Keops. This property portfolio is being divested for just over €630 million (SEK 6.3 billion), €120 million (SEK 1,200 million) above book value and €150 million (SEK 1,500 million) above acquisition value. This latter amount will be included in Kungsleden's profit for calculating dividends for 2006.
The property portfolio comprises a total of 172 properties in locations from Malmö in southern Sweden to Luleå in the north. The total lettable floor-space is approximately 900,000 m² with rental value of around €68 million (SEK 680 million). The estimated property yield is about 6.5%. The deal is conditioned by the purchasers financing until 31 July 2006.
Kungsleden will transfer ownership of these properties on 3 October 2006.
Coincident with this divestment, Kungsleden is upgrading its forecast profit for calculating dividends for the financial year 2006 from €150 million (SEK 1,500 million) to €290 million (SEK 2,900 million), or €2,1 (SEK 21) per share.
Kungsleden's Chief Executive Jens Engwall commented: "A divestment of this scale and healthy profits creates good prospects for expansion in care and schools, while we will also be able to maintain a high transaction level in commercial properties."