STOCKHOLM, Sweden, April 26, 2002 (PRIMEZONE) -- The company that Kungsleden owns jointly with Pilen AB, has acquired seven properties for use as housing for the elderly in Malmo. The acquired properties are: Storskarven 9, 12, 13, Bardisanen 14, Nicktisteln 2, as well as Tvarakern 16 and 17. The total floor space is 8,900 m2 and the purchase price is SEK 108 M. The acquisitions are being effected at an estimated direct yield of 8.1 percent. Malmo municipality rents 80 percent of the floor space.
"Housing for the elderly is a growth market offering major opportunities. In 2001, we acquired a portfolio of housing for the elderly for approximately SEK 1.2 billion. Within the company that we own jointly with Pilen, we acquired two properties earlier this week. We have now increased our holding with a further seven attractive properties that have stable tenants and long-term rental contracts," said Jens Engwall, CEO of Kungsleden.
For further information, contact: Jens Engwall, CEO, Kungsleden tel +46 8-503 052 04/mobile +46 70-690 65 50 Goran Linder, Business Area Manager, Housing for the Elderly tel +46 8-503 052 07/mobile +46 70-690 65 75 Johan Risberg, Deputy CEO, Kungsleden tel +46 8-503 052 06/mobile +46 70-690 65 65
Kungsleden's business concept is to own and manage properties with a high and stable long-term property yield. Kungsleden is an active participant in the change processes on the Swedish property market, by utilizing and enhancing its competencies in structuring heterogeneous property holdings. This implies Kungsleden's property holding frequently changing through acquisitions and disposals. Kungsleden's property portfolio comprises 441 properties with a book value of nearly SEK 9,3 bn. The holding is located in a total of 126 municipalities, and is concentrated on the Swedish provinces of Gotaland and Svealand. Kungsleden has been quoted on the Stockholm Stock Exchange O-list since 14 April 1999.
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