Kungsleden completes divestment to Sweden's Third AP Fund

Kungsleden completes divestment to Sweden's Third AP Fund

Press Release
16 April 2009

Listed Swedish property company Kungsleden AB (publ) is completing its
divestment of 50% of the shares of Hemsö to the Third AP (Pension Insurance)
Fund. Hemsö owns and manages Kungsleden's Public Properties in Sweden, mainly
retirement home, care and school properties. This transaction was previously
announced in a press release on 22 December 2008. 

The transaction was conditional on the Swedish Competition Authority's approval
and retained financing, conditions that are now satisfied.

The sales price, which containes slightly fewer properties than previously, is
based on a property value of SEK 14.6 bn, against the SEK 15.4 bn reported
previously. The sales price exceeds historical cost by SEK 2.1 bn and
corresponds to book value. The transaction will affect Kungsleden's profit for
calculating dividends for 2009 by approximately SEK 800 m, unchanged from the
previous estimate.

The property holding is well diversified nationwide but concentrated on the
major city regions. The transaction involves 239 properties with area of
1,191,000 sq.m., against the previously reported 277 properties with area of
1,326,000 sq.m. In terms of sales price, the property yield is 6.3% based on the
operating net 2008, pro forma. Total rental value is about SEK 1.3 bn. From the
Second-quarter Interim Report 2009 onwards, Kungsleden will report Hemsö
according to the proportional method.

Change of ownership will occur on 4 May 2009.

Thomas Erséus, Kungsleden's Chief Executive, commented: “with this deal, we can
continue to develop and strengthen Hemsö's already secure position as a partner
and landlord on the public property market alongside the Third AP Fund.
Simultaneously, Kungsleden will also be more able to exploit business
opportunities that arise on the commercial and public property markets.”

Kungsleden discloses the information in this press release according to the
Swedish Securities Markets Act and/or the Swedish Financial Trading Act. The
information was provided for public release on 16 April 2009 at 9 a.m.

For more information, please contact:
Thomas Erséus, Chief Executive, tel +46 (0)8 503 05204, mobile +46 (0)70 378
2024
Johan Risberg, Deputy Chief Executive, tel +46 (0)8 503 05206, mobile +46 (0)70
690 6565

Detta pressmeddelande finns tillgängligt på svenska på www.kungsleden.se 

Kungsleden's strategy is to ensure sustainable high and stable returns
proceeding from its existing holding, and through acquisitions and divestments.
As of 31 December 2008, the property portfolio comprised 603 properties with a
book value of SEK 28.6 bn. The holding was located in a total of 132
municipalities, although concentrated on the Swedish provinces of Götaland and
Svealand, and the Öresund region. Kungsleden has been quoted on the OMX Nordic
Exchange Stockholm since 1999.