Kungsleden exits regional Swedish assets in €68m deal

Listed Swedish property investor Kungsleden has signed an agreement to sell 15 commercial and office properties in the southern Swedish city Eskilstuna to Fastighets AB Regio for SEK 700 mln (€68 mln).

Kungsleden said that the price was in line with the properties’ book value.

'We had the opportunity to sell our Eskilstuna properties to a long-term property owner with a focus on regional cities. The released capital will be used for value-creating investments in one of our priority markets: Stockholm, Gothenburg, Malmö or Västerås,' said Ylva Sarby Westman, deputy CEO and CIO at Kungsleden.

'The transaction also means that we strengthen our focus on offices and reduce the proportion of commercial properties in the portfolio to represent 5% of total real estate value.'

The properties have a leasable area of more than 80 000 m2, of which approximately 20 000 m2 have been vacant for an extended period of time.

Closure will take place in January 2019 and the annual operating net loss amounts to approximately SEK 40 mln.

As a result of the sale, Kungsleden will leave Eskilstuna and close the local office.


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