Property sale discontinued
On 16 February 2012, listed Swedish property company Kungsleden AB (publ) reported the sale of five properties for a total purchase price of SEK 151 m excluding transaction costs at a property yield of 7.1%. On 10 April 2012, Kungsleden reported that completion had been rescheduled to 15 May 2012.
Because the purchaser has not succeeded in arranging finance in time, it is likely that this transaction must now be cancelled. However, the parties are continuing to work to find a solution.
The sales price of these properties exceeded book value by approximately SEK 10 m and acquisition cost by about SEK 26 m. Because the likelihood of this transaction being completed has reduced, Kungsleden will pull out of the transaction in the second quarter.
“It’s obviously really regrettable that due to financing problems the purchaser has been unable to take possession of the properties at the designated time. Accordingly we are now likely to be compelled to discontinue the transaction, and unless it can be completed soon, we are considering demanding completion and damages in accordance with our agreement,” commented Kungsleden’s Chief Executive Thomas Erséus.
For more information, please contact:
Thomas Erséus, CEO Kungsleden | phone +46 (0)8 503 052 04 | mobile +46 (0)70 378 20 24
Johan Risberg, Deputy CEO Kungsleden | phone +46 (0)8 503 052 06 | mobile +46 (0)70 690 65 65
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 16 May 2012 at 1:30 p.m.
Kungsleden’s strategy is to ensure sustainable high and stable returns proceeding from its existing holding, and through acquisitions and divestments. As of 31 March 2011, the property portfolio comprised 317 properties with a book value of SEK 15.5 bn. The portfolio was located in a total of 100 municipalities, mainly in southern and central Sweden. Kungsleden has been quoted on the Nasdaq OMX Stockholm since 1999.