Kungsleden negotiating acquisitions (SE)

Swedish listed property company Kungsleden AB (publ) is negotiating with the Västra Götaland regional authority regarding the acquisition of approximately 33 Social services properties at a total purchase price of SEK 645 m.

The transaction is scheduled for approval by the regional estates authority on 17 March.

The 33 properties are located in 20 of the region’s total 49 municipalities and have total floor-space of around 180,000 sq.m. The floor-space is used for regional administration, primary and dental care, physiotherapy, and also includes retirement home accommodation. The rental value is about SEK 124 m, with 60% of this total sourced from the region’s own activities, and 40% from external tenants, mainly municipalities.

The intention is for all regional activities to remain in their current premises, with an ownership change, and rental contracts with the region running for a weighted average term of six years.

If the estates authority approves the transaction, the objective is to enter a binding contract by no later than 18 March, taking possession on 2 May 2005.

Source: Kungsleden

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