Stockholm-listed property company Kungsleden has reached its 2016-2017 goal to sell non-strategic properties for SEK 2 bn (€200 mln) after inking a deal to divest 18 industrial and warehouse properties for SEK 882 mln (€88 mln).
The sale of the assets, which are located in 13 municipalities throughout Sweden, will allow the company to focus on 19 municipalities, in addition to the four priority markets of Stockholm, Gothenburg, Malmö and Västerås.
'We have continued to optimize our property portfolio through intensive and dedicated efforts,' commented Biljana Pehrsson, Kungsleden's CEO. 'With the current transaction, the restructuring of Kungsleden's property holdings is completed. Our focus from now on will be to extract value and invest in our core portfolio of investment and development properties.'
The 18 properties divested have a gross leasable area of just over 277,000 m2 and a rental value of SEK 110 mln (€11 mln). The legal ownership will be transferred in July this year, resulting in Kungsleden foregoing net operating income from the properties for half of 2017.
The company said that the sales prices in the divestments of non-strategic properties over the two-year period 2016-2017 have been roughly in line with book values.
