Listed Swedish property company Kungsleden has reached a binding agreement regarding the acquisition of the majority of properties of NR Nordic & Russia Properties. This transaction was previously reported in December 2010 and January this year.

Kungsleden is acquiring 36 properties, 33 of which are located in Sweden, one in Germany and two in Poland, for a purchase price of about SEK 3.6 bn (EUR 409 mln) including transaction costs. Completion is scheduled for 31 March 2011.

The 36 properties have gross leasable area of 825,000 m2, 93% of which is in Sweden. The total rental value of SEK 563 mln corresponds to a property yield of about 10%. After completion, this acquisition will contribute around SEK 200 mln to Kungsleden’s annual profit for calculating dividends.

This property portfolio consists of office and industrial properties and features stable returns and high-quality tenants. The current vacancy rate corresponds to 5% of total rental value. ABB, representing some 50% of rental value, is the largest tenant, followed by Finnveden, with some 10%.

Pangea Property Partners is acting as financial adviser and property adviser. Mannheimer Swartling Advokatbyrå is legal adviser.