Kungsleden in SEK 279 m property sale

Kungsleden in SEK 279 m property sale

Listed Swedish property company Kungsleden AB (publ) is selling two
commercial properties for a total purchase price of SEK 279 m. The
property yield amounts to 6.4%. The sales price is in line with book
value and acquisition cost.

These properties are located on the outskirts of Slakthusområdet
wholesaling estate in Johanneshov, south of Stockholm. Leasable area is
some 25,000 sq.m., split 55% warehousing and 45% processing area,
offices, staffing accommodation and restaurants. 95% of warehousing
volumes consist of freezer storage.

The buyer is St Erik Markutveckling, a wholly owned subsidiary of the
City of Stockholm. The sale is conditional on approval by the City of
Stockholm's municipal council and completion is scheduled for December
2011.

The City of Stockholm is implementing an extensive change process for
the whole Slakthusområdet estate, and in 2010, adopted its ‘Vision
Söderstaden 2030 (vision for the southern city) with the intention of
developing the estate into a centre for events and leisure, with arenas,
offices and housing.

“I'm really satisfied with this sale and view the City of Stockholm as a
natural owner with the change process now happening in Slakthusområdet,”
commented Kungsleden's Chief Executive Thomas Erséus.

For more information, please contact:

Johan Risberg, Deputy CEO Kungsleden | phone 46 (0)8 503 052 06 | mobile
46 (0)70 690 65 65