Listed Swedish property company Kungsleden is purchasing the Swedenborg Center commercial property for SEK 194 mln (EUR 21.4 mln), including transaction costs. The asset generates SEK 29 mln in annual rent, reflecting a net initial yield of 7.6%.

Swedenborg Center is located in Trollhättan, north of Gothenburg and has a leasable area of 29,200 m2, mainly comprising offices, care and residential premises. The buildings were originally used by Trollhättan Hospital.

The southwestern corner of the property is made up of approximately 30,000 m2 of forest, which Kungsleden thinks has the potential for subdivision, and after detailed planning, will generate development rights for residential properties with a total area of 10,000 m2.