Tornet to sell Malmstaden (SE)

Fastighets AB Tornet has previously announced the sale of its subsidiary Malmstaden. Agreements covering all Malmstaden´s properties have now been signed.

Purchase agreements have been signed with:

· The municipal company Hyresbostäder relating to residential properties in central Norrköping.

· A consortium of four local property owners, represented by PricewaterhouseCoopers, relating to the residential properties in central Linköping.

· Keoterra AB, which is owned by the Danish listed company Keops A/S and Althén Pérez & Co, relating to Malmstaden AB which will include the remaining properties with the exception of the shopping centre properties.

In addition, a declaration of intent has been signed with the property company Keops A/S regarding the shopping centre properties Disponenten 2, Linköping, and Johannes 21, Norrköping.

The transactions are based on a total property value of SEK 4,313 million (€ 474.9 million).

The transactions include 128 properties with total lettable area of 580 400 m². The price is 9% above Tornet´s valuation on 31 December 2003 and the net profit, which will be reported in the fourth quarter results, is estimated to exceed SEK 600 million (€ 66 million). There are certain conditions attached to the transactions, mainly concerning financing.
All transactions are expected to be completed this year.

Tornet´s advisers in the transaction have been Leimdörfer Fastighetsmarknad AB and Lehman Brothers Europe Limited.

In addition, Tornet has sold four properties at total sales price of SEK 59 million (€ 6.5 million) and a capital gain of SEK 43 million (€ 4.7 million). Three of the properties are situated in Gothenburg and one in Karlstad.

The sales comply with Tornet´s strategy of winding up its assets and repaying freed-up capital to the shareholders. More information about the properties sold is available on Tornet´s website, under the heading properties.

Source: Fastighets AB Tornet

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