Kungsleden Sells German Real Estate Portfolio
Swedish real estate company Kungsleden AB has agreed to sell 17 properties in Germany for a total of SKr 1.3 billion (e145 million) at a property yield of more than 7 percent to Hemsö Fastighets AB, which is a 50-50 joint venture of Kungsleden and the Swedish Third Pension Insurance Fund AP3.
The divested portfolio consists of retirement homes located in Rohr and Frankfurt. The properties have a combined gross leasable area of some 75,400 square metres. The sale price is about SKr 20 million (e2.2 million) below book value and some SKr 35 million (e3.9 million) less than acquisition cost.
“Kungsleden acquired this property portfolio in Germany in 2006 and 2007,” says Thomas Erséus, Kungsleden’s chief executive. “Through the formation of Hemsö, the retirement homes portfolio in Germany is no longer such a natural component of Kungsleden, but fits better in Hemsö