Castellum acquires for SEK 90 million and sells properties for SEK 180 million with a capital gain of SEK 21 million

Gothenburg, December 10, 1998
The real estate company Castellum has acquired four properties in Växjö in western Småland at a total of SEK 90 million. Furthermore, 22 properties in Tranås, Vetlanda, Jönköping, Gothenburg and Kristinehamn have been sold at a total of SEK 180 million with a capital gain of SEK 21 million.

Through its local subsidiary in western Småland, Fastighets AB Corallen, Castellum has in two transactions acquired four commercial properties in Växjö for a purchase price of SEK 90 million. The properties acquired have a total lettable area of fully 27,000 square metres, of which slightly more than 20 % are vacant at the time of taking over. The acquisitions correspond well with the company's strategy to increase the volume managed in Växjö, which is one of the company's priority towns in western Småland. The acquisitions will immediately return a profit after full charge of interest and depreciations.

Fastighets AB Corallen has, in one transaction, sold all its properties, mainly residential properties, in Tranås and Vetlanda, as well as one property in Huskvarna for a total of SEK 120 million. Through this transaction the company entirely winds up its activities in the municipalities of Tranås and Vetlanda, which implies an increased concentration of the company's operations in western Småland. In Jönköping Corallen has sold a smaller residential property for SEK 11 million. Moreover, Eklandia Fastighets AB has sold two residential properties and one office property in western Gothenburg and one industrial property in Kristinehamn at a total of SEK 49 million. The total capital gain from the above sales amounts to SEK 21 million.

Castellum's local subsidiary in Skåne, Fastighets AB Briggen, will, during a period of three years, carry out a large-scale rebuilding and extension project in the property, Citygallerian in Malmö. The investment, which is estimated at approximately SEK 55 million, includes i.a. an extension with new office premises, after which more than 800 square metres of the existing area can be rebuilt to new retail area.
For further information, please contact
Håkan Hellström, CFO, tel +46 31 60 74 00 / mobile +46 (0)705 60 74 56

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