Kungsleden Makes SEK 955 m Public Property Acquisition

Listed Swedish property company Kungsleden AB (publ) (STO:KLED) is acquiring and taking possession of six public properties in Norrkoping and Nykoping near Stockholm from GE Real Estate Norden for a purchase price of SEK 955 m including transaction costs.

These properties have total lettable floor-space of approximately 89,300 sq.m., mainly consisting of offices and school premises. The biggest tenants are the Police Authority, the Swedish National Courts Administration, the Swedish Civil Aviation Administration, the Swedish Meteorological and Hydrological Institute, the Swedish Prison and Probation Service and Sodermanland County Council. Total rental value is just over SEK 94.6 m, and the estimated property yield is 6.8%. The average remaining duration of rental contracts is about six years.

"The tenants, mainly central government bodies and authorities, combined with these well-located, good properties make this portfolio very attractive," commented Kungsleden's Chief Executive Thomas Erseus.

Kungsleden discloses the information in this press release according to the Swedish Securities Markets Act and/or the Swedish Financial Trading Act. The information was provided for public release on 28 March 2008 at 2 p.m.

Kungsleden's strategy is to ensure sustainable high and stable returns proceeding from its existing holding, and through acquisitions and divestments. As of 31 December 2007, the property portfolio comprised 575 properties with a book value of SEK 25.7 bn. The holding was located in a total of 134 municipalities, although concentrated on the Swedish provinces of Gotaland and Svealand, and the Oresund region. Kungsleden has been quoted on the OMX Nordic Exchange Stockholm since 1999.

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