Terms for Kungsleden’s rights issue set

Not for release, publication or distribution, directly or indirectly, in or into
Australia, Hong Kong, Japan, Canada, Singapore, South Africa, the United States
or any other jurisdiction where such distribution of this press release would be
subject to legal restrictions.
Summary

  · Shareholders in Kungsleden have preferential right to subscribe for one (1)
new share per three (3) existing shares, i.e. an issue ratio of 1:3
  · The subscription price is SEK 35 per share
  · The total issue proceeds amounts to approximately SEK 1,593 million before
issue costs
  · The rights issue is subject to approval by an Extraordinary General Meeting
that will take place on 16 September 2014

“We see that there are good acquisition opportunities in the market which fit
Kungsleden’s long term strategy. The new issue gives us the opportunity to
increase the growth rate where the mid-term goal is to reach a profit before tax
of SEK 1.0-1.2 billion no later than 2017. Focus will be on clustered real
estate portfolios and the 18 defined micro locations where we see growth
potential for rents as well as returns”, says Biljana Pehrsson, CEO of
Kungsleden.

Background and reasons
In early 2013, Kungsleden launched a new strategy with the goal to become the
most profitable and successful real estate company on the market. One part of
the new strategy is to create a larger, geographically more concentrated, high
quality property portfolio within selected property segments and geographical
regions which are characterised by good economic growth and demand for premises.
The company’s goal is to generate an attractive total return and the ambition is
to grow the property portfolio to a value of approximately SEK 30 billion.

Throughout 2013 and 2014 a number of large successful property acquisitions have
been carried out in accordance with the new strategy, while properties deemed
non-strategic have gradually been divested. In Kungsleden’s view, there are
currently attractive acquisition opportunities that would fit the company’s long
term strategy.

Consequently, the Board of Directors has resolved to, subject to the approval by
an Extraordinary General Meeting, launch a rights issue of approximately SEK 1.5
billion before issue costs in order to increase Kungsleden’s financial
flexibility and facilitate the company’s ability to realise its growth plans and
thereby create additional shareholder value.

Terms and conditions for the rights issue
On 15 August 2014, Kungsleden announced the decision of the Board of Directors
on a new share issue with preferential rights for the company’s shareholders.
The Board of Directors has now set the final terms for the issue.

A holding of three (3) existing shares on the record date entitles to
subscription for one (1) new share. The record date at Euroclear Sweden AB for
the right to receive subscription rights is 19 September 2014. The subscription
price is SEK 35 per share.

The subscription period (subscription through payment) will run from 23
September up to and including 8 October 2014, or such later date as decided by
the Board of Directors. Trading in subscription rights is expected to take place
from 23 September up to and including 3 October 2014.

Not more than 45,500,688 new shares shall be issued. Assuming full subscription,
the number of shares in the Company will increase from 136,502,064 shares to
182,002,752 shares and the share capital from SEK 56,875,860.00 to SEK
75,834,480.00, representing an increase of approximately 33 per cent. Assuming
full subscription, the total issue proceeds amounts to approximately SEK 1,593
million before issue costs. For existing shareholders who do not participate in
the new issue, a dilution effect arises corresponding to 25 per cent of the
total number of shares and votes in the company after the issue. Shareholders
who choose not to participate in the rights issue are able to compensate for
this dilution by selling their subscription rights.

The decision to launch the rights issue is subject to approval by an
Extraordinary General Meeting that will take place on Tuesday 16 September 2014
at 2:00 p.m. CET at Summit, Grev Turegatan 30, Stockholm.

Shareholder support
Shareholders representing approximately 17 per cent of the shares in Kungsleden,
comprising Gösta Welandson (and related company) and Olle Florén (and related
company), both represented on the Board of Directors, as well as the Second
Swedish National Pension Fund have indicated that they are positive towards the
rights issue and have expressed their intention to vote in favour of it at the
Extraordinary General Meeting as well as subscribe for their pro rata shares of
the issue.

Indicative timetable for the rights issue
16 September 2014: Extraordinary General Meeting to decide on the rights issue
resolved by the Board of Directors
16 September 2014: Last day of trading in the shares including right to
participate in the rights issue
17 September 2014: First day of trading in the shares excluding right to
participate in the rights issue
19 September 2014: Record date for participation in the rights issue, i.e.
shareholders who are registered in the share register as of this day will
receive subscription rights for participation in the rights issue
19 September 2014: Estimated date for the publication of the prospectus
23 September – 3 October 2014: Trading in subscription rights
23 September – 8 October 2014: Subscription period
13 October 2014: Announcement of preliminary results of the rights issue

Financial and legal advisors
Kungsleden has engaged ABG Sundal Collier and SEB Corporate Finance as financial
advisors and Mannheimer Swartling Advokatbyrå as legal advisor in connection
with the rights issue.
For more information, please contact:

Biljana Pehrsson, Chief Executive of Kungsleden | +46 (0)8 503 052 04 |
biljana.pehrsson@kungsleden.se
Anders Kvist, Deputy CEO and CFO of Kungsleden | +46 (0)8 503 052 11 |
anders.kvist@kungsleden.se

www.kungsleden.se
Detta pressmeddelande finns tillgängligt på svenska på
www.kungsleden.se/pressmeddelanden

Kungsleden AB (publ) discloses the information in this press release according
to the Swedish Securities Markets Act and/or the Swedish Financial Trading Act.
The information was provided for public release on 12 September 2014 at 7:30
a.m.

Kungsleden’s business concept is to own, manage and improve commercial
properties in growth regions in Sweden and to deliver attractive total returns.
Kungsleden’s strategies to create value are based on meeting the premises
requirements of customers by managing, improving and developing properties and
planning consents and by optimising the company’s property portfolio. Kungsleden
has been quoted on NASDAQ OMX Stockholm since 1999.

Important information

The information in this press release does not contain or constitute an offer to
acquire, subscribe or otherwise trade in shares, subscription rights or other
securities in Kungsleden. Any invitation to the persons concerned to subscribe
for shares in Kungsleden will only be made through the prospectus that
Kungsleden estimates to publish on or around 19 September 2014.

This press release may not be released, published or distributed, directly or
indirectly, in or into Australia, Hong Kong, Japan, Canada, Singapore, South
Africa, the United States or any other jurisdiction where such action is wholly
or partially subject to legal restrictions or where such action would require
additional prospectuses, registrations or other actions in addition to what
follows from Swedish law. Nor may the information in this press release be
forwarded, reproduced or disclosed in a manner that contravenes such
restrictions or would entail such requirements. Failure to comply with this
instruction may result in a violation of applicable securities laws.

No subscription rights, BTAs (interim shares) or new shares have or will be
registered under the United States Securities Act of 1933 (“Securities Act”) or
securities legislation in any state or other jurisdiction in the United States
and may not be offered, subscribed, sold or transferred, directly or indirectly,
within the United States, other than pursuant to an exemption from the
registration requirements of the Securities Act and in accordance with
securities laws in relevant state or other jurisdiction in the United States.

This press release may contain forward-looking statements which reflect
Kungsleden’s current view on future events and financial and operational
development. Words such as “intend”, “expect”, “anticipate”, “may”, “believe”,
“plan”, “estimate” and other expressions which imply indications or predictions
of future development or trends, and which are not based on historical facts,
are intended to identify forward-looking statements. Forward-looking statements
inherently involve both known and unknown risks and uncertainties as they depend
on future events and circumstances. Forward-looking statements do not guarantee
future results or development and the actual outcome could differ materially
from the forward-looking statemen