Kungsleden, Sweden's listed property company, has announced it has signed a letter of intent in relation to the divestment of Swedish commercial properties worth about SEK 2 bn (EUR 220 mln). Thomas Erseus, the company's ceo, told PropertyEU that the negotiations involved about 100 office properties in the centre and north of Sweden but the exact composition of the portfolio had yet to be decided.
Kungsleden, Sweden's listed property company, has announced it has signed a letter of intent in relation to the divestment of Swedish commercial properties worth about SEK 2 bn (EUR 220 mln). Thomas Erseus, the company's ceo, told PropertyEU that the negotiations involved about 100 office properties in the centre and north of Sweden but the exact composition of the portfolio had yet to be decided.
The identity of the potential buyer has not been disclosed and the transaction is conditional on the satisfactory completion of due diligence and the arranging funding. Kungsleden said in a statement that assuming the divestment went ahead, the expected capital gain would be about SEK 300 mln (EUR 33.1 mln) with profit for calculating dividends of about SEK 400 mln (EUR 44.1 mln). Barring any hitches, a binding agreement is scheduled for signing in late January or early February next year, with the transfer of properties in the second half of 2007.
In early November, Kungsleden purchased eight properties for EUR 22.6 mln, generating a yield of 7.2%. The properties are in Goteborg, Kungalv and Uddevalla and have a total lettable area of 31,000 m2, with a rental value of EUR 2.4 mln. Kungsleden takes possession of the buildings on December 1 this year. And, Kungsleden divested 172 Swedish properties to Keops of Denmark for SEK 6.3 bn (EUR 685 mln).
