Fabege AB has signed a letter of intent on the sale of 46 properties - 20 in Kista, 24 in Täby, one in Järfälla and one in Sigtuna - to Klövern AB. Following the sale, Fabege will have no remaining properties in Kista and Täby. The sale is conditional on the adoption at an extraordinary general meeting of Klövern AB held no later than 17 November 2006 of the decisions necessary to implement a non-cash purchase.
The sale price is approximately €430 million, of which €120 million will be paid in the form of new shares in Klövern. About 46.5 million Klövern shares will be issued, representing 27.9% of the capital and votes. Fabege does not intend to remain a long-term shareholder of Klövern.
The sale will result in a profit after tax of €48.2 million. Fabege has made a rental guarantee, which has been taken into account in calculating the profit.
The divested properties have a total lettable area of some 350,000 m², mainly offices, with a rental value of about €46.06 million. The transfer of ownership will take place on 20 November.
Following the sale, Fabege's property portfolio will comprise 178 properties, of which 49 in the inner city of Stockholm and 31 in Solna, which together will account for over 70% of the Group's total rental value.
"Through this sale we are creating an even more concentrated company with a very interesting focus on central Stockholm and Solna - two dynamic markets with significant potential", Erik Paulsson, Fabege's CEO,
"By focusing on a small number of well contained markets we will become even more effective at managing, improving and developing our portfolio and thereby strengthen our market position", Erik Paulsson continues.
"I am convinced that Klövern is the right company to take over and develop the Kista and Täby properties now that we have decided to further increase the concentration of our portfolio", Erik Paulsson concludes.