Kungsleden purchases property for Skr 194 million


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Wednesday, 08 June 2011
Listed Swedish property company Kungsleden AB (publ) is purchasing a commercial property for Skr 194 million including transaction costs. The property yield is initially 7.6%. The rental value is Skr 29 million.

The property, Swedenborg Center, is located in Trollh�ttan, north of Gothenburg and has leasable area of 29,200 sq.m., mainly comprising offices, care and residential premises. The buildings are of a very high standard because of their original usage as Trollh�ttan Hospital.

The south-western corner of the property is made up of approximately 30,000 sq.m. of forest, which Kungsleden thinks has the potential for subdivision, and after detailed planning, will generate development rights for residential properties with total area of 10,000 sq.m.


Among the tenants are The City of Trollh�ttan, offices and restaurants with a number of tenants, such as Siemens, Bygg 6:an and the elevator company Kone Hissar. Part of the leasable area consists of Student housing and consulting premises. Upon completion, the property will have a vacancy level of approximately 15%. Kungsleden expects most of the floor space to be lettable to local businesses.
Completion is scheduled for 22 June 2011.
“The purchase provides us with a property that should be the template for a property with a lot of opportunities. The base is a stable cash flow, with residential property, the City of Trollh�ttan as tenant and the objective of increasing the property yield as a result of active letting efforts. There is additional potential to create development rights,” commented Kungsleden’s Chief Executive Thomas Ers�us.
Source: Press release distributed by Cisionwire

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