Kungsleden AB is continuing to streamline its property portfolio and is selling 39 properties to NP3 for SEK 760 mln (approx.€ 81.8 mln). Including these sales, properties worth SEK 2.2 bln (approx. € 215.4 mln) have been divested in 2014 in accordance with the company’s strategy.
In the first six months of the year, Kungsleden worked intensively to optimize its property portfolio by measures including selling non-strategic properties and many smaller properties. This has allowed Kungsleden to streamline its property holding and achieve a more efficient portfolio structure.
“It’s pleasing that we’ve successfully sold properties for a total profit of some SEK 170 mln (approx. €18.3 mln) in the first six months of the year. We’ve managed to capitalize on the favorable market conditions and have completed the streamlining process faster than planned, and at attractive prices. The recent sales in the Norrland region mean that we’re now set to take the next strategic step and become active buyers again,” commented Kungsleden’s CEO, Biljana Pehrsson.
The sales in Norrland indicate that Kungsleden is now exiting ten regions: Borlänge, Falun, Härjedalen, Härnösand, Luleå, Nordmaling, Sollefteå, Sundsvall, and Timrå. All properties in Umeå, except two development projects—Aspgärdan and Laven, were divested.
The properties are being acquired by NP3, a well-known and reputable property owner in the Norrland region, who will also take over Kungsleden’s three staff at the regional offices in Umeå on completion. The properties largely comprise industrial and warehousing facilities, with total leasable area of approx. 144 100 m². The sales price after all transaction costs is slightly above book value. Completion is scheduled for 1 September and the profit will be reported in the third quarter of 2014.
In summary, Kungsleden has sold 58 properties for just over SEK 2.2 bln (approx. € 215.4 mln) in a total of 11 different transactions. Average prices exceeded book value by more than 10%. Kungsleden also acquired two properties in Malmö for SEK 66 mln (approx. €7.1 mln).