Fabege: Three transactions that contribute to strategic streamlining

Regulatory News:

Fabege (STO:FABGA) has signed an agreement with Peab regarding a transaction in three parts.

Fabege is to acquire the Nationalarenan 5 property in Arenastaden. The property contains about 850 garage spaces. The purchase consideration amounts to SEK 217m.

Fabege is selling a section of the Söderbymalm 3:405 property, in Haninge, to Peab, who intends to convert the property into housing. The purchase consideration totals SEK 30m and will generate no earnings effect. The property currently has no yield.

At the same time, the leasehold Glädjen 13, Stadshagen, is being sold to Peab for a purchase consideration of SEK 105m. The leasehold is granted for housing purposes and is currently undeveloped. After tax profit amounting to SEK 20m will be recognised in the third quarter. The leasehold currently has no yield.

The total of these transactions will generate a net investment of SEK 82m.

"These transactions are part of our continued strategic streamlining,” says Klaus Hansen Vikström, Business Development Manager at Fabege. "The properties being sold are outside our prioritised areas and generate no cash flow today. At the same time, we have a need for more parking space at Arenastaden and the acquisition of the garage will provide us with a good continuous return on investment.”

Fabege AB (publ)

This constitutes information that Fabege AB (publ) may be legally obliged to disclose under the Securities Market Act and/or the Financial Instruments Trading Act. The information was released for publication at 08:00 am CET on 9 July 2013.

Fabege AB (publ) is one of Sweden’s leading property companies focusing mainly on letting and managing office premises and property development. The carrying amount of the company’s property portfolio is approximately SEK 32.2bn. The portfolio is concentrated in the Stockholm region and has an annualised rental value of SEK 2.3bn and a lettable area of 1.1m sqm. Fabege’s shares are listed on Nasdaq OMX Stockholm, Large Cap segment.

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