Kungsleden announces rights issue of approximately SEK 1.5bn

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Australia, Hong Kong, Japan, Canada, Singapore, South Africa, the United States
or any other jurisdiction where such distribution of this press release would be
subject to legal restrictions.

  · Kungsleden’s Board of Directors has resolved to, subject to the approval by
an Extraordinary General Meeting, launch a rights issue of approximately SEK
1.5bn with preferential rights for Kungsleden’s shareholders. The Extraordinary
General Meeting will be held on 16 September 2014.
  · The reason for the rights issue is to enhance the financial flexibility and
facilitate the company’s ability to realise its growth plans and thereby create
additional shareholder value.
  · Complete terms and conditions of the rights issue, including subscription
price, are expected to be announced no later than 12 September 2014. Subject to
the approval of the rights issue by an Extraordinary General Meeting on 16
September 2014, the subscription period will run from 23 September up to and
including 8 October 2014.

“One and half years have now passed since we launched our new strategy and the
implementation of it has so far exceeded expectations. We have refined and
concentrated the property portfolio geographically and have significantly
increased the share of properties in large city areas. We are now taking the
next step and will become an active acquirer again. In order to facilitate for
an acquisition pace according to our plan, we have decided to launch a rights
issue of approximately SEK 1.5bn”, says Biljana Pehrsson, CEO of Kungsleden.
Background and reasons
In early 2013, Kungsleden launched a new strategy with a focus on active
management, development and long term value creation of commercial properties.
One part of the new strategy is to create a larger, geographically more
concentrated, high quality property portfolio within selected property segments
and geographical regions which are characterised by good economic growth and
demand for premises. The goal is to generate an attractive total return and the
ambition is to grow the property portfolio to a value of approximately SEK 30bn
over time.
Throughout 2013 and 2014 a number of large successful property acquisitions have
been carried out in accordance with the new strategy, while properties deemed
non-strategic have gradually been divested. Examples include the SEK 5.5bn
property acquisition from GE Capital Real Estate in December 2013, the sale of
Kungsleden’s 50 percent stake in Hemsö to the Third Swedish National Pension
Fund for SEK 3.3bn with effect from February 2013, and, recently, the sale of 39
properties in northern Sweden to NP3 for SEK 760m with effect from September
2014. The transaction market has so far during 2014 generated high volumes and a
number of large transactions. In an active transaction market environment,
acquirers need good financial preparedness. In Kungsleden’s view, there are
currently a number of potential transaction opportunities that would fit the
company’s long term strategy. Consequently, the Board of Directors has resolved
to, subject to the approval by an Extraordinary General Meeting, launch a rights
issue of approximately SEK 1.5bn before issue costs with preferential rights for
Kungsleden’s shareholders in order to increase Kungsleden’s financial
flexibility and facilitate the company’s ability to realise its growth plans and
thereby create additional shareholder value. The aim is to generate a profit
before tax of SEK 1.0-1.2bn no later than 2017.
Terms and conditions for the rights issue
Shareholders in Kungsleden will have preferential rights to subscribe for new
shares in proportion to their holdings. In the event that all shares are not
subscribed for with subscription rights, the Board of Directors shall decide on
allotment of shares subscribed for without the exercise of subscription rights
up to the maximum amount of the rights issue, and such shares will be allocated
to those who have also subscribed for shares by exercising subscription rights
and applied for subscription of additional shares, irrespective of whether they
were shareholders on the record date or not, pro rata to the number of
subscription rights used for subscription of shares. To the extent allotment
according to the above cannot be made pro rata, allotment shall be made by
drawing of lots.
The amount by which the share capital will be increased, the number of shares to
be issued and the subscription price for the new shares are expected to be
announced no later than 12 September 2014.
The record date at Euroclear Sweden AB for participation in the rights issue
with preferential rights is 19 September 2014. The subscription period
(subscription through payment) will run from 23 September up to and including 8
October 2014, or such later date as decided by the Board of Directors. Trading
in subscription rights is expected to take place from 23 September up to and
including 3 October 2014.
The decision to launch the rights issue is subject to approval by an
Extraordinary General Meeting that will take place on Tuesday 16 September 2014
at 2:00 p.m. CET at Summit, Grev Turegatan 30, Stockholm. For more information,
please see the notice for the Extraordinary General Meeting in a separate press
release.
Shareholder support
Shareholders representing approximately 17 percent of the shares in Kungsleden,
comprising Gösta Welandson (and related company) and Olle Florén (and related
company), both represented on the Board of Directors, as well as the Second
Swedish National Pension Fund have indicated that they are positive towards the
rights issue and have expressed their intention to vote in favour of it at the
Extraordinary General Meeting as well as subscribe for their pro rata shares of
the issue.
Indicative timetable for the rights issue
12 September 2014: Announcement of complete terms and conditions, including
subscription price and subscription ratio
16 September 2014: Extraordinary General Meeting to decide on the rights issue
resolved by the Board of Directors
16 September 2014: Last day of trading in the shares including right to
participate in the rights issue

17 September 2014: First day of trading in the shares excluding right to
participate in the rights issue
19 September 2014: Record date for participation in the rights issue, i.e.
shareholders who are registered in the share register as of this day will
receive subscription rights for participation in the rights issue

19 September 2014: Estimated date for the publication of the prospectus
23 September – 3 October 2014: Trading in subscription rights
23 September – 8 October 2014: Subscription period
13 October 2014: Announcement of preliminary results of the rights issue
For more information, please contact:

Biljana Pehrsson, Chief Executive of Kungsleden | +46 (0)8 503 052 04 |
biljana.pehrsson@kungsleden.se
Anders Kvist, Deputy CEO and CFO of Kungsleden | +46 (0)8 503 052 11 |
anders.kvist@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 15 August 2014 at 7:30 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.

Important information

The information in this press release does not contain or constitute an offer to
acquire, subscribe or otherwise trade in shares, subscription rights or other
securities in Kungsleden. Any invitation to the persons concerned to subscribe
for shares in Kungsleden will only be made through the prospectus that
Kungsleden estimates to publish on or around 19 September 2014.

This press release may not be released, published or distributed, directly or
indirectly, in or into Australia, Hong Kong, Japan, Canada, Singapore, South
Africa, the United States or any other jurisdiction where such action is wholly
or partially subject to legal restrictions or where such action would require
additional prospectuses, registrations or other actions in addition to what
follows from Swedish law. Nor may the information in this press release be
forwarded, reproduced or disclosed in a manner that contravenes such
restrictions or would entail such requirements. Failure to comply with this
instruction may result in a violation of applicable securities laws.

No subscription rights, BTAs (interim shares) or new shares have or will be
registered under the United States Securities Act of 1933 (“Securities Act”) or
securities legislation in any state or other jurisdiction in the United States
and may not be offered, subscribed, sold or transferred, directly or indirectly,
within the United States, other than pursuant to an exemption from the
registration requirements of the Securities Act and in accordance with
securities laws in relevant state or other jurisdiction in the United States.

This press release may contain forward-looking statements which reflect
Kungsleden’s current view on future events and financial and operational
development. Words such as “intend”, “expect”, “anticipate”, “may”, “believe”,
“plan”, “estimate” and other expressions which imply indications or predictions
of future development or trends, and which are not based on historical facts,
are intended to identify forward-looking statements. Forward-looking statements
inherently involve both known and unknown risks and uncertainties as they depend
on future events and circumstances. Forward-looking statements do not guarantee
future results or development and the actual outcome could differ materially
from the forward-looking statements.