STOCKHOLM, Sweden, Oct. 31, 2002 (PRIMEZONE) -- The property company Kungsleden AB (publ) (Other OTC:KGSDF) (Stockholm:KLED) has, through Hemso Aldreboende AB, a joint venture with Catella, acquired 10 properties in Malmo.
The properties are used for elderly living and contains 13 tsqm with a rental income of SEK 17,5 million. The average length of rental contracts is 8 years and 88% of rental income comes from the municipality of Malmo. The purchase price is SEK 192 million with an initial yield of 8%.
Kungsleden has also sold the property Stockholm Stenskarven 8 located in Vinsta. The property, which contains 9.700 sqm of offices, was sold for SEK 35 million which generated a loss of SEK 5 million.
"The presented deals is another step in our ambition to strengthenthe yield while lowering the risk in the property portfolio," said JensEngwall, CEO of Kungsleden, commenting on the transactions.
For more information, please contact:
Jens Engwall, Kungsleden's Chief Executive tel: +46 (0)8 503 05204, mobile +46 (0)70 690 6550 Johan Risberg, Kungsleden's COO tel: +46 (0)8 503 05206, mobile +46 (0)70 690 6565
Kungsleden's strategy is to assure sustainable high and stable returns proceeding from its existing holding, and through acquisitions and disposals. Kungsleden's property holding comprises 415 properties with a book value of approximately SEK 9.5 bn. The holding is located in a total of 122 municipalities, although concentrated on the Swedish provinces of Gotaland and Svealand. Kungsleden has been quoted on the OM Stockholm Exchange O-list since April 14, 1999.
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