Kungsleden to acquire GE Capital's Swedish property portfolio

Swedish listed property company Kungsleden has signed a memorandum of understanding with GE Capital Real Estate to acquire an 84-asset portfolio.

The underlying property value of GE Capital Real Estate's wholly owned portfolio in Sweden comes to SEK 5.5 bn (€638 mln). GE Capital Real Estate will retain some assets in the market that are held in joint venture structures.

The properties are mostly office buildings and are largely situated in Stockholm and Gothenburg. The total leasable area is about 567,000 m2.

'This property portfolio has a profile which fits very well into Kungsleden´s new strategy which focuses on offices, industrial/warehouse and retail properties in big city areas and other growth regions in Sweden. We will now enter a customary due diligence phase', said Biljana Pehrsson, board member and incoming CEO of Kungsleden.

The memorandum of understanding gives Kungsleden the exclusive right to conduct technical, legal and financial due diligence of the portfolio. The acquisition is conditional upon no major findings arising during the due diligence process.

Signing of the purchase agreement is scheduled for October with the transaction expected to close before year-end. The acquisition does not require Kungsleden to raise any additional equity.