Divestment of large office portfolio with the Swedish Police as main tenant on behalf of GE Real Estate.

• During the autumn of 2005 Leimdörfer advised GE Real Estate when divesting a portfolio consisting of 84 office properties around Sweden.

• The properties were located from Kiruna in the furthest north of Sweden to Simrishamn in the furthest south of Sweden. Total lettable area amounted to approximately 370,000 m², of which 91 % was office premises. The average size of each property amounted to just 4,400 m².

• Leimdörfer identified the property portfolio as highly attractive to divest under current market conditions, in particular given the large investment volume, unique tenant structure and geographical diversification.

• The Swedish Police, the National Courts Administration and the Swedish Tax Agency represented a substantial part of the rental income and an important part of the sales process therefore was to describe these tenants’ internal organisations and long-term interest in the properties.

• Leimdörfer contacted a large number of parties, Nordic as well as international investors to maximise competition in the structured sales process that followed.

• Leimdörfer also arranged financing to be available in parallel with the sales process to make sure that the best buyer was matched with the best lender. Since the average lease length was short, an important aspect became to analyse and communicate how the geographical diversification contributed to reduce the overall risk level.

• Parallel due diligence and final negotiations with multiple investors were conducted to enhance competition as far into the sales process as possible.

• As an outcome of the process, the Danish investor Keops acquired the properties for approximately €295 million.

• Property portfolios of this size with public-sector tenants are rare and the deal received considerable attention in the international real estate community.

• Leimdörfer managed to statistically analyse and communicate the low risk associated with highly diversified portfolios to potential buyers and banks, which resulted in a high sales prices widely exceeding the client’s expectations.

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