Keops sells 68 properties for almost EUR 314 mln

Keops, a Danish property developer and investor, has entered into a conditional agreement with Essex Invest Sverige for the sale of 68 Swedish residential properties for SEK 2.85 bn (EUR 313.85 mln). The agreement relates to
three Swedish portfolios: the Borgs portfolio, the PBA portfolio and parts of the Malmstaden portfolio. The assets include a total of 68 well-maintained rental properties with 4,489 flats and around 346,000 m² primarily for residential use.

The agreement is conditional on the buyer's provision of financing by December 10 2006, after which the properties will be transferred on 1 February 2007.

The portfolio being sold was acquired from May 2004 until January 2006 for approx. SEK 2.186 mln (EUR 240 mln), including costs. The large increase in values shows that the development in prices on Swedish residential properties has been extremely favourable, Keops said.

After the transaction, Keops investment property assets will overwhelmingly consist of buildings for commercial use with a total value of DKK 18.2 bn (EUR 2.4 bn). Conditional on the completion of the sale , Keops will acquire 14 Danish commercial properties from Essex Invest for DKK 400 mln (almost EUR 54 mln), corresponding to an average net return of 5,2%.