Kungsleden in SEK 1150 m property acquisition

Kungsleden in SEK 1150 m property acquisition

Press Release 23 June 2010

Through Hemsö, its joint venture with AP3 (the Swedish Third Pension
Insurance Fund), listed Swedish property company Kungsleden AB (publ) is
acquiring four public properties  spread over 38 buildings,  for a total
purchase price of approximately SEK 1150 m at a property yield of
approximately 7.5%. Total rental value is some SEK 125 m. 

This property holding has gross leasable area of 122,000 sq.m. The
largest tenants consists of the Municipality of Gotland, the Östersund
branch of the Swedish Social Insurance Administration, the Östersund
police authority, the Municipality of Karlskrona and ICA Fastigheter
Borås, who represent approximately 60% of the rental revenues. The
average remaining contract term in the portfolio is nine years.

These properties were developed by Vasallen in 2003-2010, and can now be
considered largely complete. The transaction's scheduled completion date
is 1 October 2010. 

“Acquiring these well-developed properties from Vasallen, feels really
positive,” commented Kungsleden's Chief Executive Thomas Erséus, “with
their long agreements and stable returns, this transaction will make a
positive contribution to our portfolio composition and risk-adjusted
returns.” 

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 23 June 2010 at 9:00 a.m.

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