STOCKHOLM, Sweden, April 24, 2002 (PRIMEZONE) -- Kungsleden is extending its focus on housing for the elderly. In accordance with the approach described in the Annual Report, expansion within the business area will be conducted in cooperation with other capital owners, among other measures.
In keeping with this, Kungsleden is now forming a jointly owned company with Pilen AB, a company closely associated with Catella Holding. Kungsleden is entitled to acquire Pilen's holding in the new company. In the long term, the partners in the company may be extended further.
Kungsleden and Pilen have undertaken to invest as much as SEK 50 M each in risk capital in the new company.
The new company has also acquired two properties to be used as residential facilities for the elderly. The properties acquired are Norra Sjukhuset 1 in Lund, with floor space totaling 14,000 m2, for a price of SEK 110 M, and the Luthagen 81:1 property in Uppsala, with floor space of 2,740 m2 for a total of SEK 42 M. The acquisitions were affected at an estimated direct yield of 8.3 per cent. The tenants are the local municipalities concerned.
"Housing for the elderly is a growth market offering major opportunities. Through the formation of the jointly owned company, our expansion within Housing for the Elderly can be conducted more rapidly than would otherwise be possible. Kungsleden acquired a portfolio of properties for housing for the elderly during 2001 for approximately SEK 1.2 billion. This ownership is now being extended through the acquisition via the jointly owned company of two attractive properties, with stable tenants and long-term rental contracts," said Jens Engwall, CEO of Kungsleden.
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 April 14, 1999.
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