Gothenburg, October 4, 1999
Through its local subsidiaries, the real estate company Castellum invests approximately SEK 300 million, of which SEK 200 million refer to new construction projects in Gothenburg and Örebro. Furhermore, the company acquires 7 commercial properties at a total of SEK 85 million and sells 17 properties at a total of SEK 123 million with a capital gain of SEK 22 million.
At the square "Lilla Bommen" in the centre of Gothenburg, Eklandia Fastighets AB has acquired a building site and will construct a new building with about 8,000 square metres office premises and a parking garage. Owing to this project, which is estimated at approxi-mately SEK 160 million, the company will improve its possibilities to meet the increasing demand for larger, centrally located high quality office premises. The construction will start this autumn and is expected to be finished in the beginning of year 2001.
In order to meet the demand for larger premises with high standard in Örebro, Aspholmen Fastigheter AB will construct a new office and warehouse building of approximately 3,000 square metres on one of the company's building sites in the Aspholmen business district. The investment is estimated at approximately SEK 30 million and the building is expected to be completed during the last quarter of year 2000.
On a recently acquired property in Högsbo industrial area in Gothenburg, Harry Sjögren AB is carrying out an extension of about 1,600 square metres warehouse premises for an existing tenant and in Alingsås the company is rebuilding 3,100 square metres industrial area into office premises for a new tenant. These investments amount in all to approxi-mately SEK 30 million.
For a purchase price of SEK 36 million Aspholmen has acquired a retail property in the Fyrislund district in southern part of Uppsala where the company already owns several properties. The acquired property has a lettable area of approximately 7,400 square metres, of which about 10 % are vacant.
In Hisingen in Gothenburg Eklandia Fastighets AB has acquired two warehouse and office properties in districts where the company already owns several properties. The acquisitions have a total lettable area of about 5,400 square metres, of which about 40 % are vacant. The total purchase price was approximately SEK 19 million.
The subsidiary Fastighets AB Corallen has acquired two office and warehouse properties in Växjö and one industrial property in Värnamo at a total of approximately SEK 22 million. The properties have a lettable area of in all 13,900 square metres, of which about 30 % are vacant.
In Elisedal industrial area in Malmö, Fastighets AB Briggen has acquired a warehouse property of approximately 1,900 square metres, of which about 40 % are vacant. The purchase price amounted to SEK 8 million.
In line with Castellum's strategy of concentrating the residential portfolio in solely pro-nounced central and attractive locations another 12 residential properties have been disposed of for a total of SEK 60 million. Seven of the sold properties are located in Värnamo and five in Hisingen in Gothenburg. Furthermore, a smaller retail property in Hisingen in Gothenburg, an industrial property in Gislaved and a smaller office property in Värnamo have been sold for in all SEK 33 million. In Malmö an office property in Limhamn has been disposed of at SEK 30 million. All of the properties sold are fully let.
The above sales result in a total capital gain of SEK 22 million, which implies that the capital gains from property sales accounted for so far during 1999 amount to SEK 105 million. The objective is to report annually capital gains of SEK 80-100 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