Kungsleden selling public properties in Germany for SEK 1.3 bn

Kungsleden selling public properties in Germany for SEK 1.3 bn

Press Release 29 December 2010

Listed Swedish property company Kungsleden AB (publ) is divesting 17
properties in Germany for a total purchase price of approx. SEK 1.3 bn
at a property yield of just over 7%. The buyer is Hemsö Fastighets AB,
in which Kungsleden is a joint venture partner. The sales price is about
SEK 20 m below book value and some SEK 35 m less than acquisition cost.
This latter amount will be posted to Kungsleden's profit for calculating
dividends for 2010.

“Kungsleden acquired this property portfolio in Germany in 2006 and
2007. Through the formation of Hemsö, the retirement homes portfolio in
Germany is no longer such a natural component of Kungsleden, but fits
better in Hemsö. This portfolio has stable returns, and with Hemsö as
its owner, we will benefit from ongoing earnings, while also freeing up
funds for property acquisitions that suit Kungsleden's portfolio
better,” commented Kungsleden's Chief Executive Thomas Erséus.

These properties consist of retirement homes, the majority located in
the Rohr region and in Frankfurt. Gross leasable area is around 75,400
sq.m. and total rental value is EUR 10,873,000.

Completion is scheduled for the first quarter of 2011.

Divestment is conditional on funding and a concluded due diligence
process.

 

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 29 December 2010 at 9:00 a.m.

For more information, please contact:
Thomas Erséus, CEO Kungsleden | phone 46 (0)8 503 052 04 | mobile 46
(0)70 378 20 24
Johan Risberg, Deputy CEO Kungsleden | phone 46 (0)8 503 052 06 | mobile
46 (0)70 690 65 65