Castellum makes acquisitions for SEK half a billion, chiefly a retail property in central Malmö

Gothenburg, December 17, 1999
Through its local subsidiaries, the real estate company Castellum has acquired a larger retail property in the centre of Malmö, as well as nine office and warehouse properties in Malmö, Gothenburg and Stockholm at a total of approximately SEK 500 million.

Through the subsidiary Fastighets AB Briggen, Castellum has acquired a larger property, known as "Hansa-compagniet", in the city centre of Malmö at the amount of SEK 335 million. The property has a total lettable area of 30,650 square metres, of which 9,600 square metres retail premises, 7,050 square metres office premises, 5,000 square metres apartments and 9,000 square metres parking garage. The acquisition makes it possible to co-ordinate the retail areas in the acquired building with the shopping arcade "CityGallerian" situated in the adjacent property, owned by Briggen. This will create attractive and closely connected retail areas with direct passage to parking area. Possession will be taken on February 1st, 2000.

Moreover, Briggen has acquired two properties close to the inner beltway in Malmö, at a total of SEK 16 million. One of the properties has a lettable office area of about 2,500 square metres and the other, which is unbuilt, contains a building permission of about 2,000 square metres. The properties are adjoining and situated adjacent to one of the company's existing office properties. Possession will be taken in the beginning of January next year.

Harry Sjögren AB has, in one transaction, acquired five warehouse and office properties with in all 16,100 square metres of lettable area. The properties are situated in the Högsbo-Sisjön industrial park in Gothenburg, in which district the company already was one of the major operators. One of the properties also includes a building permission of about 3,000 square metres. The total purchase-sum was SEK 90 million, and the properties will be taken over in December this year.

Fastighets AB Brostaden has acquired two commercial properties in Stockholm at a total of SEK 47 million. One is an office and warehouse property of 4,350 square metres in Mariehäll/Bromma east of Stockholm city, in which area the company owns several properties. The property improves the company’s ability to compete in the district, which is characterized by an increasing demand for premises. The other acquisition is a warehouse and office property of about 5,500 square metres in Skärholmen south of Stockholm. With the increasing demand for this type of premises, the property will be a complement to the company's other properties in the vicinity. Both of the properties acquired will be taken over in the middle of December 1999.

- "During 1999 we have made acquisitions and investments at a total of SEK 1.9 billion", said Castellum's president, Thomas Alexandersson. "During the latter part of the year, several new construction projects with good profitability have been completed. All of these acquisitions and investments will improve the company's ability to compete and will have full impact on the outcome during year 2000. In addition to that we have a project-portfolio with started projects of SEK 400-500 million as well as building permissions in various stages."

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