Kungsleden’s Master Lease agreement with ABB in Västerås is renegotiated and replaced with 17 new lease agreements
Kungsleden AB (publ) has together with its largest tenant ABB agreed to restructure the lease agreement relationship in Västerås. The old Master Lease agreement is replaced with 17 new lease agreements with a total lease value of 214 MSEK per year and a considerably longer duration.
ABB is since 2008 Kungsleden’s largest tenant representing approximately 14 % of Kungsleden’s total lease income. Kungsleden and ABB have now agreed to restructure the common lease agreement relationship. The 13 year old Master Lease agreement, which includes all properties in Västerås is replaced with 17 normal lease agreements. The agreements involve market adjusted terms and conditions allowing greater flexibility, clarity and security for both parties.
The 17 new lease agreements covers 234,000 sqm of space in eleven properties of which 41,000 sqm comprises offices in central Västerås and 193,000 industry/warehouse space on Finnslätten. The agreements are valid from January 1, 2015 and the average duration has been extended to 7.6 years from 3 years according to the Master Lease agreement.
“With the new agreement solution both Kungsleden and ABB will have a greater flexibility and security, which warrants a good and lasting business relationship”, says Eskil Lindnér, Head of Property Management at Kungsleden.
“It has been important for ABB to find a flexible and sustainable solution for our businesses in Västerås. Following negotiations with Kungsleden we have now found a form that we feel confident with and which allows Kungsleden to be part of and support ABB’s development going forward”, says Lars Åkerstedt, Head of Real Estate at ABB.
Västerås is expanding with large infrastructure projects in the city center and in the Mälar Valley region. Västerås, Eskilstuna and Örebro are growing closer to each other and to Stockholm thanks to investments in railroad, roads and airports. The region is becoming an important hub in the mid parts of Sweden.
“Västerås and the entire Mälar Valley are facing a dynamic development and Kungsleden wants to strengthen its market leading position in the region. The extension of the strategic lease agreement relationship with ABB is an important part of our ambitions. It also feels great to now have Mats Eriksson on board in Västerås as Regional Manager for Kungsleden in the Mälar Valley”, says Eskil Lindnér.
For more information, please contact:
Eskil Lindnér, Head of Property Management at Kungsleden | +46 40 17 44 02 | email@example.com
Biljana Pehrsson, Chief Executive Officer at Kungsleden | +46 8 503 052 04 | firstname.lastname@example.org
Detta pressmeddelande finns tillgängligt på svenska på www.kungsleden.se/pressmeddelanden
The information was provided for public release on 25 March 2015 at 10:00 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 Stockholm since 1999.