STOCKHOLM, Sweden, Nov. 04, 2003 (PRIMEZONE) -- Drott sells all its commercial properties in Oresund region for SEK 2.2 billion
The sale is an element in the new strategic direction for Drott's commercial real estate operations, where the focus is on properties in Stockholm.
The portfolio comprises 45 properties -- six of which are leaseholds -- with 201,000 square meters of rentable space (including 8,000 sq. m. of residential space).
The occupancy rate is 94 percent. Current leases generate annual rent of SEK 222 million and an operating surplus of SEK 143 million.
The sale is being executed through a special purpose company, with the closing scheduled for December 30, 2003. The buyer is Kungsleden AB.
Effects for Drott
The sales price amounts to SEK 2,223 million. An independent appraisal of the market value of Drott's property portfolio was made as per December 31, 2002. The market value of the properties now being sold was appraised at the time at SEK 2,230 million.
For accounting purposes, the sale results in a gain of approximately SEK 280 million, which will be reported in the fourth quarter 2003.
The fiscal residual value in the portfolio is approximately SEK 770 million less than the sales price. The effect on liquidity based on the difference is estimated at SEK 50 million.
Outstanding tax loss carryforwards are reduced by approximately SEK 40 million.
The sales proceeds will be received upon closing, with the exception of SEK 350 million, which will be received in 2004.
The sale initially reduces the Group's annual cash flow by approximately SEK 70 million.
The sale requires negotiations pursuant to the provisions of the Co- determination in the Workplace Act, which will begin immediately.
Catella Corporate Finance has served as Drott's adviser in the sales process.
Following the sale, Drott's property portfolio in the Oresund region is concentrated on residential properties. In Malmo, Drott owns a total of 44 properties with 2,606 apartments, and in Lund it owns nine properties with 537 apartments.
Schedule of real estate
Properties Address Rentable Of
Area sold space which
excl. reside
garages ntial
space
Central Claus Baltzarsgatan 41 6,204
Malmo Mortensen 29
Central Davida 15 Kungsgatan 6 11,553
Malmo
Central Druvan 1 Engelbrektsgatan 7 2,782
Malmo
Central Gustav Adolf 12 Lilla Nygatan 11 3,157
Malmo
Central Kamelen 14 Storgatan 43 13,500
Malmo
Central Laxen 23 S Forstadsgatan 34 7,455
Malmo
Central Lejonet 2 Stortorget 17 5,679 314
Malmo
Central Oscar 16 Sodergatan 3 2,115
Malmo
Central Stjarnan 10 Engelbrektsgatan 6 901
Malmo
Central Soderport 7 Gustav 2,052 556
Malmo Adolfs Torg 43
Central Soderport 8 Per Weijersgatan 4 1,582
Malmo
Central Soderport 9 Gustav 2,100
Malmo Adolfs Torg 47
Central Von Conow 51 Kalendegatan 4 1,929
Malmo
Central Von Conow 54 Baltzarsgatan 31 20,810 2,582
Malmo
Malmo Fosie Armringen 2 Agnesfridsvagen 190 4,867
Malmo Brudbuketten 11 Derbyvagen 24 1,344
Jagersro
Malmo Brannaren 3 Industrigatan 13 4,380
Sorgenfri
Malmo Brannaren 8 Agneslundsvagen 14 5,395
Sorgenfri
Malmo Dadeln 23 Industrigatan 4 3,480
Sorgenfri
Malmo Fosie Flintkarnan 2 Agnesfridsvagen 154 4,608
Malmo Flygbasen 4 Hojdrodergatan 17 1,681
Bulltofta
Malmo Flygledaren 1 Hojdrodergatan 14 916
Bulltofta
Malmo Grasejen 1 Prangaregatan 5 2,365
Limhamn
Malmo Gullriset 4 Camillavagen 17-21 648
Hindby
Malmo Hammaren 5 S Bulltoftavagen 17-19 4,299
Kirseberg
Malmo Fosie Krukskarvan 11 Flintyxegatan 8A 2,610
Malmo Kupolen 2 Krossverksgatan 7-17 9,922
Limhamn
Malmo Masugnen 22 Annelundsgatan 59 2,369
Sofielund
Malmo Samjan 2 Bokgatan 18 m fl 9,417
Sofielund
Malmo Fosie Torshammaren 11 Hornyxegatan 6 647
Malmo Vakteln 17 Linnegatan 34 2,560 196
Limhamn
Malmo Vakteln 3, 23 Jarnvagsgatan 40 1,871 969
Limhamn
Malmo Vildanden 8 Geijersgatan 4-6 8,561
Limhamn
Malmo Vildanden 9 Geijersgatan 2 5,825
Limhamn
Helsingborg Asien 20 Kvarnstensgatan 11 m fl 2,548
Gaseback
Helsingborg Dolken 3 Morsaregatan 12 3,845
Berga
Helsingborg Fiskaren 40,41 Kullagatan 31-37 6,743 3,418
Centrum Delfinen 17
Helsingborg Jupiter 12 Grenadsjargatan 8 1,459
Ringstorp
Helsingborg Kavalleristen 11 Bergavagen 1A 2,184
Berga
Central Radhuset 7 Stortorget 7 3,092
Helsingborg
Central Springposten 3 Springpostgranden 3 2,127
Helsingborg
Central Terminalen 1 Jarnvagsgatan 10-12 19,239
Helsingborg
200,821 8,035
Drott is being divided into two focused, publicly listed companies. Shareholders at the Annual General Meeting in 2004 will vote on the Board of Directors' proposal to distribute Bostadsaktiebolaget Drott, a streamlined residential real estate company active in around ten Swedish growth regions. As proposed, today's Drott would at the same time change its name to Fabege AB, an active, streamlined commercial real estate company focused on Stockholm.
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