Castellum acquires properties at SEK 80 million

Gothenburg, June 24, 1998
The real-estate company Castellum buys 12 properties in Gothenburg, Jönköping and Uppsala at a total of SEK 80 million. Furthermore, a project including new construction and rebuilding, will be started in Malmö. Castellum has also sold a property in Ljungby at SEK 31 million with a capital gain of SEK 3 million.

Through its local subsidiary Eklandia Fastighets AB in Gothenburg, Castellum acquires 9 office, warehouse and industrial properties in Hisingen, Gothenburg. The total purchase price amounts to SEK 50 million. The properties acquired have a total lettable area of fully 15,000 square metres, of which approx. 2,700 square metres are vacant. In the Arendal industrial area in Hisingen in Gothenburg, Eklandia has acquired a warehouse and office property of approx. 3,800 square metres for a purchase price of SEK 15 million. The property will be vacant at the time of taking over, which implies a potential as there is a good demand for this type of premises. All the properties acquired are adjacent to the company's existing holdings.

By the motorway E4 through Jönköping, the subsidiary Fastighets AB Corallen has acquired an industrial and office property with a lettable area of approximately 9,600 square metres, of which approximately 3,400 square metres are vacant. The purchase price amounts to SEK 14 million.

The subsidiary Aspholmen Fastigheter AB has acquired a property with office and exhibition premises of approximately 700 square metres. The property, which is situated by the southern entry point to Uppsala, also comprises a building permission of 2,000 square metres for office construction. Aspholmen owns additional properties in the area and is presently erecting a new retail and office building there.

Castellum's local subsidiary in Malmö, Fastighets AB Briggen, starts a large-scale project involving new construction and rebuilding of a former industrial plant in Malmö - a project with a total volume of investment of about SEK 100 million. The first stage of the project implies the erection of a new retail building of approximately 3,500 square metres at SEK 25 million. The new building, which has subscribed leases for all areas, will be ready for occupation in autumn 1999.

Each one of the above mentioned transactions, except the vacant property in Arendal, will immediately after take over or completion return a profit after full charge of interest and depreciations.

Moreover, Castellum has disposed of the office and retail property "Garvaren" in the centre of Ljungby. As a consequence, Castellum entirely winds up its activities in the municipality. The sales price, SEK 31 million, results in a capital gain of SEK 3 million.

For further information, please contact
Håkan Hellström, CFO, tel +46 (0)31 60 74 00/+46 (0)705 60 74 56

Lars-Erik Jansson, deputy CEO, tel +46 (0)31 60 74 00/+46 (0)705 92 06 70