Castellum acquires for SEK 188 million and sells properties for SEK 166 million

Gothenburg, December 15, 2000

The Real Estate Company Castellum has acquired six properties in Gothenburg and western Småland at a total of SEK 188 million. Properties were disposed of at a total of SEK 166 million with a capital gain of SEK 16 million.

Through the subsidiary Eklandia Fastighets AB Castellum has acquired an office and warehouse property close to the traffic route E6/E20 in Gothenburg. The lettable area is approximately 33,000 square metres, of which about 21,000 square metres warehouse and 8,600 square metres office area. At present the property's occupancy rate is 89 % and the vacant areas consist of office premises. Possession will be taken at once.

Fastighets AB Corallen has acquired five properties of about 16,200 square metres in all, of which four are situated in Värnamo and one in Växjö. The acquisitions in Värnamo consist of one fully let office and retail property in the town centre as well as two vacant office and industrial properties and one piece of land in the Hornaryd industrial area. The acquisition in Växjö is a property for retail, warehouse and distribution purposes with 20 % vacancies, good enhancement potential and an unutilized building permission of fully 2,000 square metres. The total purchase price for these acquisitions amounted to SEK 66 million.

In Högsbo industrial area in Gothenburg, where the subsidiary Harry Sjögren AB owns larger hol-dings, an office and warehouse property of 2,100 square metres was acquired at SEK 7 million. The property, which includes an unutilized building permission of 1,000 square metres, will be reconstruc-ted for a tenant newly contracted.

In the disitrict Linnéstaden in Gothenburg, Eklandia Fastighets AB has sold one more residential property to a housing co-operative. The property, with an area of 2,750 square metres and 28 apartments, was sold for SEK 29 million with a capital gain of SEK 11 million.

In line with the company's strategy of concentrating the western Småland portfolio to a few priority towns and reducing the residential share of the portfolio, Corallen has, in Gislaved, Vaggeryd, Jönköping and Värnamo, sold seven properties of in all about 35,000 square metres as well as a number of smaller sites to local operators. The total sales price was SEK 137 million, which implies a capital gain of about SEK 5 million.

Inclusive of the above sales, the capital gains from property sales accounted for so far during 2000 amount to approximately SEK 142 million.

During this autumn two earlier announced new construction projects in Lund and Stockholm have been started. In Lund, a larger office project, "Edison Park", near the Ideon-area has been started. The construction, which represents an investment of about SEK 230 million, consists of four, fully let houses of in all 20,000 square metres, which will be ready for the first occupation during the autumn 2001. On the same property, there are further building permissions of about 20,000 square metres.

Moreover, a larger new construction has been started in the so-called "Kista Science Park" in northern Stockholm, where about 12,000 square metres will be built next to the company's existing properties. The investment amounts to about SEK 210 million, car park included, and the first tenants are expected to move in at next year-end.

The projects mentioned above, together with the new office building, which is under construction in Lilla Bommen in central Gothenburg and a number of smaller projects, represent a total project portfolio of approximately SEK 1 billion.

In connection with the redemption programme of SEK 700 million, which Castellum carried through during this summer, Series C shares were temporarily issued. These Series C shares are now redeemed and removed from VPC, the Swedish Securities Registration Centre. After that, the total number of registered shares in Castellum AB is 43,001,677. In addition to the redemption programme, Castellum has repurchased 2,001,677 shares for SEK 194 million, equivalent to an average price of SEK 97 per share. Consequently, the total number of outstanding shares is 41,000,000 at present.

For further information, please contact
Lars-Erik Jansson, CEO, tel +46 31 60 74 00/ mobile +46 705-92 06 70

Håkan Hellström, CFO/deputy CEO, tel +46 31 60 74 00 / mobile +46 705-60 74 56