Clarification regarding pre-agreements in project West Side Solna
The housing association West Side Solna has recently received terminations of pre‑agreements from 53 purchasers of apartments. The standpoint of SSM and the housing association is that the agreements are valid and that the terminations are unfounded. The effect of the terminations on the Group’s earnings is deemed to be marginal.
For the purpose of providing correct information regarding the project West Side Solna, consisting of 252 cooperative apartments, the following clarification is made.
The housing association has received terminations of pre-agreements from a law firm that represents 53 buyers in the project. As a reason for termination, it has been stated, among other things, that the housing association has committed a breach of contract by postponing the preliminary time for occupation of the apartments. The group of buyers has also announced its intention to initiate court proceedings in the matter.
SSM and the housing association have analysed the agreements in question together with its external lawyers and make the assessment that the agreements are valid and shall be fulfilled. This position is based on the fundamental legal principle that agreements must be kept and that there are no grounds in support of the agreements being invalid or contestable through termination.
SSM’s assessment is that the effect of the terminations on the Group’s earnings is marginal.
For more information, please contact:
Chief Communications & IR Officer
Telephone: +46 (0)761-65 17 71
Om SSM Holding AB (publ)
SSM produces functionally smart and affordable homes with attractive common areas, close to public transport and the city center for the company’s target group — the urbanites of tomorrow. The company envisions a housing market that is accessible to as many people as possible and aspires to produce 60 percent cooperative apartments, 30 percent rental units and 10 percent student housing. SSM is the leading property developer in its niche within the Greater Stockholm area and in March 2018, the company has approximately 7,000 building permits in its portfolio. SSM was listed on Nasdaq Stockholm (Mid-cap) April 6, 2017 www.ssmlivinggroup.se