Castellum sells residential properties for SEKm 173 with a capital gain of SEKm 44

Gothenburg, January 12, 1999

The real estate company Castellum has sold 10 residential properties in Mölndal and Borås at a total of SEK 173 million with a capital gain of SEK 44 million. Furthermore, the company has acquired two properties in Stockholm and Gothenburg at a total of SEK 43 million. In Lund and Helsingborg Castellum will carry out extensions and rebuildings for a total of SEK 125 million.

The subsidiary Harry Sjögren AB has, in two transactions during January 1999, sold 10 residential properties with in all approx. 30,000 square metres in Mölndal and Borås, at a total of SEK 173 million with a capital gain of SEK 44 million. Following these sales, Castellum's residential holdings in western Sweden are now still more concentrated to central Gothenburg.

Through its local subsidiary in Stockholm, Fastighets AB Brostaden, Castellum has acquired another office property in Bromma, Stockholm for a purchase price of SEK 14 million. The property has a total lettable area of 3,850 square metres, of which 60 % are vacant at the time of taking over. The leasing market in this area is favourable and the acquisition improves the company's possibilities to offer the type of premises in demand.

Eklandia Fastighets AB has acquired a warehouse and office property of 7,560 square metres in Hisingen, Gothenburg where the company already owns several properties. In connection with the transaction a rental agreement for the entire area has been signed. The property, which includes an unexploited building permission of approx. 4,000 square metres, was acquired for SEK 29 million.

Castellum's local subsidiary in the Öresund Region, Fastighets AB Briggen, will carry out an extension of an office property situated in the science and technology park Ideon in Lund. The extension, which is estimated at SEK 35 million, comprises 3,500 square metres of new lettable area which is already fully let.

Moreover, Briggen has started a rebuilding of a larger residential property in Helsingborg. The property comprises nine buildings with in all 182 apartments and 17 retail premises. The investment is estimated at SEK 90 million.

For further information, please contact
Håkan Hellström, CFO, tel +46 31 60 74 00 / mobile +46 705 60 74 56

Lars-Erik Jansson, deputy CEO, tel +46 31 60 74 00 / mobile +46 705 92 06 70