SWEDEN - The Swedish AP3 fund has bought 50% of Swedish property manager Hemsö for SEK14.6bn (US$1.8bn).
Kungsleden, Hemsö's parent company, yesterday announced the deal had been finalized though it was originally announced in December.
The sale price for the 50% of shares is based on the total value of Hemsö's properties amounting to SEK14.6bn, down from an estimated value of SEK15.4bn announced in December.
The sale ultimately involved fewer properties in the final property portfolio than previously thought, according to a statement issued by Kungsleden today.
The transaction generated a preliminary profit of SEK800m for Kungsleden, it said.
"Kungsleden is retaining its positive view of the potential of the public properties segment and will, together with AP3, continue to make an active contribution to Hemsö's ongoing progress," said Kungsleden.
Kungsleden chief executive Thomas Erséus commented: "Kungsleden has been accumulating a substantial holding within public properties since 2001, a business we think has very good potential extending into the future."
He added: "We're delighted that AP3 shares our view of this sector and through this deal, we're creating good prospects of continuing to develop Hemsö alongside AP3 optimally, and further consolidate Hemsö as a capable partner and landlord for existing future tenants."
The change in ownership of the shares will occur on 4 May 2009.
Hemsö owns and manages Kungsleden's public properties in Sweden, which largely comprises retirement homes, care and school properties. This includes 277 properties, which have a value of SEK15.6bn as of 30 September last year.
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