Kungsleden divests property in Örebro with potential for residential development
Kungsleden has signed a sale and purchase agreement concerning the property Målaren 17 in Örebro. The divestment is in line with Kungsleden’s strategy to sell real estate with residential development potential.
The property Målaren 17 forms a part of the area Målaren, situated in central Örebro. Currently the estate holds a building of 9,340 square meters previously functioning as a printing office. Ever since the printing function was dismantled in 2015 large areas of the property have been vacant. Kungsleden has in cooperation with Örebro municipality commenced a transformation of the property for future residential exploitation with an expected building rights potential of approximately 30,000 – 40,000 square meter gross area.The initial selling price amounts to SEK 43.5 million prior to deduction for deferred tax, which is in line with the property’s book value. The property will be vacated in August 2017 and since the property is completely vacant the transaction will not result in any loss of net operating income. When the zoning gains legal force, an additional purchase price, which is estimated to SEK 130 million prior to deduction for deferred tax, will be received. The purchase sum corresponds to a building rights price of 5,400 SEK per square meter residential gross area. The zoning is expected to gain legal force in 2020.
For more information, please contact:
Ylva Sarby Westman, Deputy CEO and CIO Kungsleden | 46 8 503 052 27 | ylva.sarby.westman@kungsleden.se
Detta pressmeddelande finns tillgängligt på svenska på www.kungsleden.se/pressmeddelanden
The information was provided for public release on 30/6 2017 07:00 a.m.
Kungsleden is a long term property-owner that provides attractive, functional premises that enrich people’s working days. We create value by owning, managing and developing offices and other commercial properties in Stockholm and Sweden’s other growth regions. A large portion of our properties belong to attractively located clusters where we also engage in the development of the whole area. Kungsleden’s goal is to deliver an attractive total return on our properties and for our shareholders. Kungsleden is listed on NASDAQ Nordic Large Cap.
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