Klövern acquires major property portfolio

Klövern has signed an agreement on the acquisition of a property portfolio comprising 37 properties in Linköping, Norrköping and Örebro. The purchase price is SEK 1,055 million and the properties will be taken over on 1 October 2010.

“At last, one might say. It feels pleasant to be able to state that the property market is getting back on form and that Klövern has the strength and muscle to re-enter a growth phase,” says Klövern’s CEO Gustaf Hermelin. “The portfolio offers potential and our staff with their firm local base are ready to serve existing tenants and to fill the vacant premises with new clients.”

The acquisition comprises 37 properties with a total area of 157,000 sq. m. Of these properties 31 are situated in Linköping, four in Norrköping and two in Örebro. The purchase price amounts to SEK 1,055 million, the initial direct yield is 6.5 per cent and the economic occupancy rate is 74 per cent. The vendor is the Valad Property Group.

This acquisition strengthens Klövern’s presence in three priority cities. The properties supplement existing portfolios and Klövern will be the market leader in commercial properties in Linköping. After taking over the properties Klövern will have 248 properties with a total area of 1,527,000 sq. m. valued at SEK 13,0 billion.

Nyköping, 9 September 2010

Klövern AB (publ)

For further information, please contact:
Gustaf Hermelin, CEO, +46 155-44 33 10 / +46 70-560 00 00, gustaf.hermelin@klovern.se
Britt-Marie Einar, Finance & IR Manager,  +46 155-44 33 12 / +46 70-224 29 35,
britt-marie.einar@klovern.se

Klövern is a real estate company committed to working closely with customers to meet their needs of premises and services in Swedish growth regions. Klövern has business units in ten cities: Borås, Karlstad, Kista, Linköping, Norrköping, Nyköping, Täby, Uppsala, Västerås and Örebro. As at 30 June 2010, the value of the properties totalled approximately SEK 12,1 billion and the rental income on an annual basis was SEK 1.4 billion. The Klövern share is listed on Nasdaq OMX Nordic Exchange in Stockholm’s list for medium-sized companies.

Klövern AB (publ), Box 1024, SE-611 29 Nyköping, Sweden. Phone +46 155-44 33 00, Fax +46 155-44 33 22. Corporate registration no. 556482-5833. Registered office: Nyköping. kelly.corem.se