Listed Swedish property company Kungsleden AB
(publ)(STO:KLED)(OSE:KGLED01) is selling its 50% stake in Swedish
community services property company Hemsö Fastighets AB to AP3 (the
Swedish Third Pension Insurance Fund) and receiving repayment of its
shareholders’ loan for total proceeds of SEK 3,320 m. The price of the
shares is SEK 1,820 m and repayment of the shareholders’ loan is SEK
1,500 m. Simultaneously, Kungsleden is signing an agreement to purchase
15 properties from Hemsö for a total purchase price of approximately SEK
1,600 m at a property yield of 7.0%.
Sale of shareholding
The price of the shareholding exceeds its book value by about SEK 650 m
including transaction costs. In total, shareholders’ equity increases by
about SEK 850 m, after items including a tax effect of around SEK 200 m.
The sale affects profit for calculating dividends for 2012 by about SEK
This transaction is part of implementing Kungsleden’s new strategy, the
key characteristics of which were communicated in the Third-quarter
Interim Report. The sale is a component of focusing business operations
on wholly owned properties in Sweden’s growth regions.
This transaction enhances Kungsleden’s financial flexibility. In
connection with a capital markets day early next year, Kungsleden will
offer more detail on how it will be investing this freed-up capital
within the auspices of its new strategy.
Completion is scheduled for 15 February 2013. Kungsleden will be able to
include its share of profits from property management from Hemsö until
In tandem with the share transaction, Kungsleden and Hemsö are signing
an agreement for Kungsleden to purchase 15 properties for community
services with significant office and retail accommodation. Total rental
value amounts to SEK 165 m and gross leasable area is about 147,000
sq.m. These properties are located in central Sweden and on the island
of Gotland. They generate stable cash flow with long-term contracts and
stable counterparties. Remaining contract terms amount to eight years.
The direct effect of the sale of the shares, the loan repayment and
property purchases consolidates Kungsleden’s liquidity of SEK 1,750 m.
In addition, the properties generate increased loan to value capacity of
over SEK 900 m.
The sale of the shareholding in Hemsö means Kungsleden upgrading its
estimate from the SEK 300 m previously reported. The new estimate for
the full year 2012 is SEK 1,800 m.
"I’m very satisfied that we’ve now sold our holdings in Hemsö and have
done a good deal. The build-up and development of properties for
community services has been positive for Kungsleden and I’m pleased
about the shareholder value created. AP3 is a solid and strong owner of
this holding. Kungsleden will continue to progress in line with our new
strategy and I see good potential in today’s market,” commented
Kungsleden’s Chief Executive Thomas Erséus.
The equity transaction is subject to approval by the Swedish Competition
Agency and the property transaction to customary "access conditions” and
the transactions are expected to be completed during the first quarter
Pangea Property Partners and Mannheimer Swartling Advokatbyrå have acted
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 14 December 2012 at 1:00 p.m.
Kungsleden’s strategy is to ensure sustainable high and stable returns
proceeding from its existing holding, and through acquisitions and
divestments. As of 30 September 2012, the property portfolio comprised
281 properties with a book value of SEK 14.8 bn. The portfolio was
located in a total of 101 municipalities, mainly in southern and central
Sweden. Kungsleden has been quoted on the Nasdaq OMX Stockholm since
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