Listing of Kungsleden AB

Listing of Kungsleden AB The Board of Directors of Kungsleden AB (publ) ("Kungsleden") has applied for a listing of the company's share on the O-List of the Stockholm Stock Exchange in conjunction with an offer to acquire shares in the company. On March 3, 1999, the Company Committee of the Stockholm Stock Exchange decided to approve listing of Kungsleden on the O-List provided that the condition for broadening in ownership of the company's shares is met. The Offer is for 5,758,620 shares (1, corresponding to 31 percent of the share capital and voting rights in Kungsleden. The shares include both outstanding and newly issued shares and will be offered to institutional investors in and outside Sweden as well as the general public in Sweden. After the Offer is implemented, the number of shares in Kungsleden will amount to a maximum of 18,558,620 (2. The Offer price will be determined through a book-building procedure among institutional investors. The price interval has been set at SEK 64-72 per share. The Offer price per share in Kungsleden will be the same for all categories of investors. The Swedish prospectus will be published on March 15, 1999. The book-building period for institutional investors begins on March 19, 1999 and ends on March 31, 1999. The final Offer price will be announced on or about April 1, 1999. It is anticipated that the share will be quoted on the O-List of the Stockholm Stock Exchange on or about April 14, 1999. Alfred Berg and Swedbank Markets are joint leading Managers for the Offer. Preliminary schedule March 15 Prospectus published March 18-31 Application period, public March 19-31 Book-building period, institutions April 1 Final Offer price announced April 13 Settlement date April 14 Estimated first day of quoting on O-List Kungsleden Kungsleden specialises in structuring heterogeneous property portfolios. The company is a transaction-intensive real estate company whose goal is to generate a higher visible yield than companies active in property management. The company's two main focuses are property management and trading. Kungsleden views property yield as the most central measurement, more important than property type and geographical location. Kungsleden does not have any prioritised communities or geographical markets. It is active in that segment of the market in which high yield can be achieved at limited portfolio risk, although mainly in central and southern Sweden. Moreover, Kungsleden does not pursue any volume goals, but works on a basis of profitability goals. As of February 17, 1999 (3 the real estate portfolio comprised 656 properties with a total book value pro forma 1998 of SEK 5,390m and a total lettable area of 1,345,000 sq. m. The rental value pro forma 1998 amounted to (1 Or the higher number of shares which may be sold in the event of an over- allotment. (2 Prior to any over-allotment. (3 Including properties which Kungsleden is contracted to acquire as of that date and excluding those it is contracted to divest. SEK 858m, of which office and retail properties accounted for 65 per cent, industrial and warehouse properties 19 per cent and other properties 16 per cent. Rental revenue pro forma 1998 amounted to SEK 757m and the revenue-based occupancy rate was 90 per cent. Operating surplus amounted to SEK 431m pro forma 1998, which corresponds to a yield of 8.0 per cent. The portfolio comprises solely Swedish properties and is geographically concentrated to central and southern Sweden. Kungsleden was formed in 1993 as holding company for properties taken over to protect claims within the Government-owned Retriva Group to manage the properties and property mortgages of the former Gota Bank. During the period through December 1997, when Kungsleden was divested from the then Government owners, Agilia Holding AB, to a number of institutional investors, most of the property holdings were divested. Approximately 800 properties valued at about SEK 4,600m were divested during 1996-97. In conjunction with the ownership change, the business concept was changed from divestment to owning and managing properties with the focus on long-term high and stable yield. After the ownership transfer, the transaction intensity remained high. The largest holdings acquired were FöreningsSparbanken's and SEB's branch properties (41 per cent of book value pro forma 1998) and commercial properties in southern Sweden from JM Byggnads och Fastighets AB (23 per cent of book value pro forma 1998). Kungsleden's goal is that return on shareholders' equity shall be a minimum of 15 per cent and yield on the property portfolio shall exceed 8.5 per cent. Equity/assets ratio shall amount to 25 per cent and short term may not be less than 20 per cent. In addition, Kungsleden intends that the dividend payout shall amount to at least 50 per cent of profit after taxes including capital gains. Kungsleden's overall goal is to create a competitive return for the shareholders. Kungsleden foresees favourable possibilities to create growth in earnings, cash flow and property values in the years immediately ahead by continuing to participate in structural transactions on the Swedish real estate market and, consequently, represent an attractive complement to the real estate companies currently listed on the Stockholm Stock Exchange. Kungsleden AB (publ) Board of Directors For further information: Kungsleden AB Lars V. Kylberg, Board Chairman, +46 (0)70-589 3177 Jens Engwall, CEO, +46 (0)8 503 052 00 Alfred Berg Fondkommission AB Tom Wikström, +46 (0)8 723 6020. Swedbank Markets Peter Birke, +46 (0)8 585 925 83 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/03/12/19990421BIT00070/bit0001.doc