Listed Swedish property company Kungsleden has announced that it is selling its participation in a development property in Västerås, west of Stockholm, to construction and civil engineering company Peab. The pair are currently joint 50% owners of Kokpunkten Fastighets, which owns the development property.

Simultaneously, Kungsleden is purchasing three public properties from Peab. These assets will be offered to Hemsö, which is 50:50 owned by Kungsleden and AP3 (the Swedish Third Pension Insurance Fund).

The public properties, which are under construction, have a gross leasable area of approximately 4,800 m2 and a rental value of around SEK 10.5 mln (EUR 1.2 mln).

These properties consist of a police station in Köping, west of Stockholm, which will be let to the police on a 12-year agreement, a pre-school building in Sigtuna, north of Stockholm, which will be let to independent pre-school operator Pysslingen on a 15-year agreement and one retirement home in the Municipality of Uppsala, north of Stockholm, which will be let on a 20-year agreement. This transaction has no effect on profit for calculating dividends, Kunglseden said.