Kungsleden sells 39 properties, exiting 10 regions in Norrland, northern Sweden

Kungsleden AB (publ) is continuing to streamline its property portfolio and is
selling 39 properties to NP3 for SEK 760 m. Including these sales, properties
worth SEK 2.2 bn have been divested in 2014 in accordance with the company’s
strategy. Kungsleden is now taking the next step and is becoming an active buyer
again.
In the first six months of the year, Kungsleden worked intensively to optimize
its property portfolio by measures including selling non-strategic properties
and many smaller properties. This has allowed Kungsleden to streamline its
property holding and achieve a more efficient portfolio structure.
In summary, Kungsleden has sold 58 properties for just over SEK 2.2 bn in a
total of 11 different transactions. Average prices exceeded book value by more
than 10%. Kungsleden also acquired two properties in Malmö for SEK 66 m.
“It’s pleasing that we’ve successfully sold properties for a total profit of
some SEK 170 m in the first six months of the year. We’ve managed to capitalize
on the favorable market conditions and have completed the streamlining process
faster than planned, and at attractive prices. The recent sales in the Norrland
region mean that we’re now set to take the next strategic step and become active
buyers again,” commented Kungsleden’s CEO Biljana Pehrsson.
The sales in Norrland mean that Kungsleden is now exiting ten regions: Borlänge,
Falun, Härjedalen, Härnösand, Luleå, Nordmaling, Sollefteå, Sundsvall, Söderhamn
and Timrå. All properties in Umeå, except two development projects—Aspgärdan and
Laven, were divested.
The properties are being acquired by NP3, a well-known and reputable property
owner in the Norrland region, who will also take over Kungsleden’s three staff
at the regional offices in Umeå on completion. The properties largely comprise
industrial and warehousing facilities, with total leasable area of approx. 144
100 sq.m. The sales price after all transaction costs is slightly above book
value. Completion is scheduled for 1 September and the profit will be reported
in the third quarter of 2014.
Kungsleden’s strategy, which was determined with a three-year perspective in
2013, is to focus its property portfolio on selected segments and regions with
positive economic growth and sound demand for premises in order to generate
attractive returns. Key strategic intermediate goals include realigning the
property portfolio to increase the proportion of office space to some 50% and
reduce the share of industrial/warehousing to some 35%, and also to increase the
share of properties located in Stockholm, Gothenburg and Malmö to at least 50%.
These goals were reached in December 2013. Another intermediate goal is to
concentrate the property holding from 110 municipalities to 70 in the medium
term. The sales completed in the first half of 2014 mean that Kungsleden now
owns properties in 95 municipalities.

[image]Image: Kedjan 5, Umeå

[image]Image: Torsvik 5, Härnösand
For more information, please contact:

Biljana Pehrsson, Chief Executive of Kungsleden | +46 (0)8 503 052 04 |
biljana.pehrsson@kungsleden.se ( biljana.pehrsson@kungsleden.se)
Ylva Sarby Westman, Head of Transactions Kungsleden | +46 (0)8 503 052 27 |
ylva.sarby.westman@kungsleden.se ( ylva.sarby.westman@kungsleden.se)

www.kungsleden.se
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 9 July 2014 at 8:00 a.m.

Kungsleden’s business concept is to own, manage and improve commercial
properties in growth regions in Sweden and to deliver attractive total returns.
Kungsleden’s strategies to create value are based on meeting the premises
requirements of customers by managing, improving and developing properties and
planning consents and by optimising the company’s property portfolio. Kungsleden
has been quoted on NASDAQ OMX Stockholm since 1999.