Kungsleden builds and acquires SEK 115 m of public properties

Press Release
22 January 2007

Listed Swedish property company Kungsleden AB (publ) is building a new retirement home for private care services provider Carema at Tyresö, south of Stockholm. The estimated investment cost is SEK 64 m.

This retirement home consists of 52 flats, and is scheduled for completion in spring 2008. The lettable floor-space is some 2,900 sq.m., let through a ten-year contract to Carema with an annual rental value of SEK 5.0 m. The estimated property yield is approximately 6.5%.

“Alongside Carema Äldreomsorg, one of Sweden’s foremost private providers of care services, we’ve succeeded in creating an effectively utilised retirement home,” commented Göran Linder, Kungsleden’s Divisional Manager, “which enables cost-efficient operating costs for our tenant.”

Additionally, a Montessori school in Kungsbacka, south of Gothenburg, and a welfare centre in Iggesund, on Sweden’s north-east coast, were acquired in two separate transactions for a total purchase price of SEK 51.5 m. These properties comprise lettable floor-space of about 6,300 sq.m. Total rental revenues are SEK 6.0 m, and they have an estimated property yield of 8.1%.