Kungsleden sells 8 Brussels properties for EUR 90.5 mln

Kungsleden, the listed Swedish property company, has agreed the sale of eight properties in Brussels to a joint venture between JER Partners Catalyst Capital for a total of EUR 90.5 mln. The transaction is expected to close in January 2007, conditional on the buyers financing of the deal.

The portfolio primarily comprises offices and the properties, whcih have a total lettable floor-space of approximately 72,000 m2, and generate an annual income of EUR 10.6 mln. The sales price was about EUR 2.2 mln below the book value and the acquisition value, Kungsleden said. Once Kungsleden will have not any property holdings in Brussels once possession of the buildings is yielded to the joint venture partners.

The largest asset in the portfolio is the 55,000 m² Manhattan Centre, an office tower built in the 1970s with retail on the ground floor. This was the first joint JER-Catalyst acquisition on the European continent, and Catalyst said it fitted into the company's strategy of 'purchasing existing assets where there are significant opportunities to add value through renovation and repositioning'.

Real estate investment manager JER Partners and Catalyst, a pan-European investment manager and developer, were advised by Beele & Co. Kungsleden was advised by Catella.