Castellum acquires properties for SEKm 167 and starts rebuilding projects of SEKm 138

 Gothenburg, February 19, 1999
     
 The real estate company Castellum has acquired one office property in the square Linnéplatsen in Gothenburg for SEK 93 million. Furthermore, the company has acquired three commercial properties in Gothenburg, Mölndal and Uppsala at a total of SEK 74 million. In Gothenburg, Lund and Jönköping the company will carry out rebuildings for a total of SEK 138 million.

Through its local subsidiary in Gothenburg, Eklandia Fastighets AB, Castellum has acquired an office property in Linnéplatsen in central Gothenburg for a purchase price of SEK 93 million. The property, which is fully let, has a total lettable area of 7,300 square metres. The building has a high standard and an attractive location.The acquisition included an adjacent building site with prospects of future new constructions.

Eklandia Fastighets AB has also acquired a warehouse and office property of about 4,800 square metres in Hisingen, Gothenburg where the company already owns several properties. The purchase price was SEK 32 million.

At a purchase price of SEK 23 million, the subsidiary Harry Sjögren AB has acquired an office and warehouse property of approximately 5,600 square metres in Åbro industrial park in Mölndal, south of Gothenburg , where the company owns several properties.

Aspholmen Fastigheter AB, which is Castellum's local subsidiary in Mälardalen, has acquired an office and retail property of about 2 500 square metres in central Uppsala. The purchase price was SEK 19 million.

Eklandia will invest SEK 80 million in a reconstruction of the well-known building "Amerikahuset" in Gothenburg. After the rebuilding, which will start this spring, the property will contain 56 smaller apartments and approximately 5,000 square metres office premises. Moving in, is expected to take place as from the year-end.

Fastighets AB Briggen will start a radical rebuilding of a retail and office property at Stora Torget in the centre of Lund. With preservation of the existing façade, a new retail and office building with approximately 2,100 square metres will be erected. The project, which is estimated at SEK 38 million, will among others create an entirely new shopping arcade in the most attractive location of the town.

The subsidiary, Fastighets AB Corallen, in co-operation with the future operator Scandic Hotel, will reconstruct the so-called Portalen-property in Jönköping. Approximately one third of this property, which for some years has contained apartments for students, will be reshaped to a modern hotel with 216 rooms. With its excellent location in the center of Jönköping, the property will be more attractive and attain improved return after the reconstruction. The hotel will be opened with 138 rooms on the first of September and will be completed at the year-end. Castellum's share of the investment is estimated at SEK 20 million.

In the Gothenburg area, three smaller properties, of which two residential properties and one office and warehouse property, have been disposed of at a total of SEK 31 million with a capital gain of SEK 4 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