Property sale discontinued

5/16/2012 7:30 AM EST
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...
SEE ALL NEWS

Kungsleden AB

Kungsleden is a property company that is always open to new business opportunities – regardless of the type of property or its location. The deciding factor is high and stable sustainable returns, where diversifying risk...

View more


  CONTACT  
Cecilia Gannedahl

Media

Kungsleden Q1 report cover
Annual report 2011
Laken 3 Linköping
Ringpärmen Sollentuna
Forskaren 2
Nannylund
Teatern 5
Westinghouse
Heden
Botvidsgymnasiet Slagsta strand
Tegelängen 1 Slagsta strand
Rälsbussen Umeå

Social

5/16/2012 8:30 AM EST
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.
5/16/2012 3:00 AM EST
Hemsö Fastighets AB, a 50:50 joint venture held by Kungsleden AB (publ) and AP3 (the Swedish Third Pension Insurance Fund) is issuing a three-year unsecured bond loan on the Swedish market. The nominal amount is SEK 750 m.
4/26/2012 3:00 AM EST
Interim report January - March 2012
4/19/2012 11:30 AM EST
Listed Swedish property company Kungsleden AB (publ) held its Annual General Meeting (AGM) on Thursday. The Meeting approved the Board of Directors’ proposed dividend of SEK 2.60 per share. The record date was set at 24 April 2012, and the dividend is scheduled for disbursement by Euroclear Sweden AB on 27 April 2012.
3/29/2012 3:00 AM EST
The Annual Report of listed Swedish property company Kungsleden AB (publ) for 2011 is now available on the company’s website kungsleden.se. The Annual Report presents new information updating its tax proceedings, on page 43. Kungsleden will be reporting potential tax rulings in press releases, and other tax-related information in tandem with its quarterly reports.
3/13/2012 4:00 AM EST
Listed Swedish property company Kungsleden AB (publ) is convening its Annual General Meeting (AGM) at 2 p.m. on Thursday, 19 April 2012 at Hotel Rival, Mariatorget 3, Stockholm, Sweden. The invitation states the business to be considered at the AGM.
2/17/2012 2:00 AM EST
Listed Swedish property company Kungsleden AB (publ) is selling two properties for a total purchase price of SEK 75 m excluding transaction costs at a property yield of 6.5%. The sales price exceeds book value and acquisition cost by approximately SEK 4 m. This amount will be included in Kungsleden’s profit for calculating dividends for 2012.
2/16/2012 6:00 AM EST
Listed Swedish property company Kungsleden AB (publ) is selling five properties for a total purchase price of SEK 151 m excluding transaction costs at a property yield of 7.1%. The sales price exceeds book value by approximately SEK 10 m and exceeds acquisition cost by about SEK 26 m. This latter amount will be included in Kungsleden’s profit for calculating dividends for 2012.
2/16/2012 2:00 AM EST
Financial Statement 2011
2/16/2012 1:58 AM EST
The Nomination Committee of listed Swedish property company Kungsleden AB (publ) is proposing that the Annual General Meeting (AGM) 2012 re-elects current Board members Håkan Bryngelson, Joachim Gahm, Lars Holmgren, Kia Orback Pettersson, Biljana Pehrsson, Magnus Meyer and Charlotta Wikström. The Committee is also proposing that Håkan Bryngelson is elected Chairman of the Board. Thomas Erséus has informed the Nomination Committee that he will not be available for re-election.
2/15/2012 2:00 AM EST
The annual financial statement of listed Swedish property company Kungsleden will be published at 8 a.m. on Thursday 16 February 2012. At noon on the same day, Chief Executive Thomas Erséus and Chief Financial Officer Johan Risberg will present the statement at Operaterrassen in Stockholm.
2/14/2012 2:00 AM EST
Through Hemsö, its joint venture with AP3 (the Swedish Third Pension Insurance Fund), listed Swedish property company Kungsleden AB (publ) is purchasing six properties for a total purchase price of SEK 396 m excluding transaction costs. The property yield amounts to approximately 6.7%.
2/3/2012 2:00 AM EST
The Administrative Court in Stockholm has reported its ruling on a case where listed Swedish property company Kungsleden appealed against the Swedish Tax Agency’s decision to reject deductions for the impairment of lagerandelar (defined in Swedish law as a construction company’s shareholding in a property management company) and the application of transitional provisions for the fiscal year 2009.
12/29/2011 2:00 AM EST
Listed Swedish property company Kungsleden AB (publ) has signed a ten-year lease agreement with Westinghouse Electric Sweden AB, one of the world leaders in nuclear technology. Westinghouse will lease over 14,000 sq.m. in Västerås, west of Stockholm,  to an annual rental value of approximately SEK 16 m. The agreed lease is what is known as a Green Lease, where Kungsleden collaborates with its tenants to reduce environmental impact through decreased energy consumption.
12/22/2011 2:00 AM EST
Through Hemsö, its joint venture with AP3 (the Swedish Third Pension Insurance Fund), listed Swedish property company Kungsleden AB (publ) is selling a public property for a total purchase price of approx. SEK 50 m including transaction costs. The property yield is 6.1%. This transaction has no profit effect.
12/21/2011 7:00 AM EST
Listed Swedish property company Kungsleden AB (publ) is selling three commercial properties for a total purchase price of approx. SEK 55 m including transaction costs. The sales price is consistent with book value and exceeds acquisition cost by about SEK 11 m. This latter amount is included in Kungsleden’s profit for calculating dividends for 2011.
12/16/2011 5:00 AM EST
Listed Swedish property company Kungsleden AB (publ) is selling five commercial properties for a total purchase price of SEK 215 m. The sales price is in line with book value and exceeds acquisition cost by approximately SEK 45 m. This latter amount is included in Kungsleden’s profit for calculating dividends for 2011.
12/15/2011 8:00 AM EST
Listed Swedish property company Kungsleden AB (publ) is selling a commercial property for a total purchase price of approximately SEK 82 m. The property yield is 6.1%. The sales price exceeds book value by SEK 11 m and acquisition cost by SEK 10 m. This latter amount is included in Kungsleden’s profit for calculating dividends for 2011.
12/7/2011 7:00 AM EST
Listed Swedish property company Kungsleden AB (publ) is selling a commercial property for a total purchase price of SEK 385 m. The property yield amounts to 7,1%. The sales price exceeds book value by SEK 20 m and acquisition cost by SEK 18 m. This latter amount will be included in Kungsleden’s profit for calculating dividends for 2011.
12/2/2011 2:00 AM EST
Through Hemsö, its joint venture with AP3 (the Swedish Third Pension Insurance Fund), listed Swedish property company Kungsleden AB (publ) is purchasing a public property for a total purchase price of approximately SEK 130 m including transaction costs. The initial property yield amounts to 6.8%.
11/30/2011 2:00 AM EST
On 12 September, listed Swedish property company Kungsleden AB (publ) reported a sale of two commercial properties for a total purchase price of SEK 279 m. This transaction was subject to approval by the City of Stockholm’s municipal council. The transaction is now unconditional, and accordingly, may be completed.
11/24/2011 2:00 AM EST
Through Hemsö, its joint venture with AP3 (the Swedish Third Pension Insurance Fund), listed Swedish property company Kungsleden AB (publ) is purchasing three properties for a total purchase price of SEK 52 m excluding transaction costs. The property yield is 6.7%.
11/14/2011 2:00 AM EST
Through Hemsö, its joint venture with AP3 (the Swedish Third Pension Insurance Fund), listed Swedish property company Kungsleden AB (publ) is purchasing a public property for a total purchase price of SEK 71 m excluding transaction costs. The initial property yield amounts to 7.4%.
11/2/2011 3:00 AM EST
Through Hemsö, its joint venture with AP3 (the Swedish Third Pension Insurance Fund), listed Swedish property company Kungsleden AB (publ) is acquiring a public property for a total purchase price of SEK 45,5 m excluding transaction costs. The initial property yield amounts to 6.2%.
10/26/2011 3:00 AM EST
Interim report January - September 2011
10/14/2011 10:00 AM EST
Listed Swedish property company Kungsleden AB (publ) is purchasing a commercial property for a price of SEK 20 m excluding transaction costs, which is an acquisition price of approximately SEK 22 m including transaction costs. The initial property yield is approximately 8.8%.
10/4/2011 3:00 AM EST
Listed Swedish property company Kungsleden AB (publ) is purchasing a commercial property for a price of SEK 132 m excluding transaction costs, which is an acquisition price of approximately SEK 140 m including transaction costs. The initial property yield is 7.7%.
9/20/2011 9:00 AM EST
Frank Larsson has been appointed as a new member of Kungsleden AB’s Nomination Committee. Frank Larsson represents Handelsbanken Fonder (mutual funds), which is the company’s third-largest shareholder as of 31 August 2011.

Quotes

"
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 "
CEO Thomas Erséus
"
It’s positive that this issue has attracted very good demand. This bond loan, which is on attractive terms, strengthens Hemsö’s capital base and supplements its current bank funding. "
Vd Thomas Erséus
"
I’m very satisfied with our results and the stability of our underlying operations. A mild winter early in the year helped the earnings capacity of our portfolio to increase by 8.0 per cent, from 7.9 per cent at year-end. The operating surplus margin increased from 66.7 per cent to 67.2 per cent. Profit for calculating dividends was SEK 121 m, compared to SEK 78 m last year despite unexpected tax costs, with a SEK –80 m liquidity effect, after rulings by the Administrative Court of Appeal in Stockholm. "
CEO Thomas Erséus
"
I feel satisfied with this transaction, which yielded a good profit. With the sale earlier in the week, these transactions demonstrate that the transaction market remains liquid with strong local players "
CEO Thomas Erséus
"
In an increasingly harsh investor climate, it feels good to start the year with a transaction at a good profit. Kungsleden’s business model is designed to improve the property portfolio’s risk-adjusted returns. Through the sale in Visby, we are also selling our only holding on Gotland. Accordingly, this transaction is a good example of active portfolio enhancement. "
CEO Thomas Erséus
"
Profit above estimate and increased dividend. "
CEO Thomas Erséus
"
These properties fit well into Hemsö’s portfolio with long leases averaging ten years of remaining contract term, which ensures stable, long-term returns. "
CEO Thomas Erséus
"
I'm very pleased to lease such a large area that has been vacant a long time and it feels good to strengthen the relationship with Westinghouse. It gives us a secure and stable cash flow that also affects our occupancy rate positively. "
CEO, Thomas Erséus
"
I’m really satisfied with this transaction, which yields a good profit. We are always on the look-out for good deal opportunities and are working to improve our risk-adjusted returns. "
CEO Thomas Erséus
"
We’ve worked hard and intensively on developing these properties and on the associated land. We’re now opting to sell this property to Gelba and Strabag Projektutveckling, which we think, has good prospects of continuing the development process. I’m really satisfied with this deal, which has generated a satisfactory profit. "
CEO, Thomas Erséus