Listed Swedish property company Kungsleden said on Tuesday it is reacquiring five commercial properties in Sweden for an investment volume of SEK 525 mln (almost EUR 51 mln), before deferred tax. The vendor is Northern Logistic Property (NLP) of Norway and the price reflects an initial yield of 9.1%.
Listed Swedish property company Kungsleden said on Tuesday it is reacquiring five commercial properties in Sweden for an investment volume of SEK 525 mln (almost EUR 51 mln), before deferred tax. The vendor is Northern Logistic Property (NLP) of Norway and the price reflects an initial yield of 9.1%.
Back in July 2008 Kungsleden sold the properties to NLP for a net purchase price of SEK 600 mln, and in tandem with this deal, Kungsleden issued a promissory note currently worth SEK 386 mln. Kungsleden said the low-yielding promissory note is now being converted to properties with a significantly higher yield.
The properties consist of warehouse and logistics premises located in southern and central Sweden. The gross leasable area is some 109,000 m2 and total rental value is over SEK 48 mln. Half of the rental value comes from properties in Mjölby, with nationwide discount retailer ÖoB as tenant. The average remaining contract term of the properties is 8.5 years.
Kungsleden will take possession of the properties on 2 November.
'These properties fit Kungsleden’s portfolio in terms of their high and stable yield,' Kungsleden CEOThomas Erséus said. 'They are properties we know well, with good tenants. We sold them last year at a good price, and are now buying them back at a good price.'
