Wallenstam buys commercial properties in Göteborg for SEK 1.4 billion

Wallenstam buys commercial properties in Göteborg for SEK 1.4 billion Wallenstam has increased its property holdings in Göteborg by acquiring 27 properties from Drott with a total floor space of 118, 422 m2. The purchase price is SEK 1.42 billion, which corresponds to a direct rate of return of about 7.5%. This acquisition further strengthens Wallenstam as the leading player in the market for commercial premises in Göteborg. Portfolio The portfolio consists of 27 properties, including 3 site-leasehold rights. The total floor space is 118,422 m2 and consists mainly of office premises, which account for 61% of the rental value. Shops account for 12% of the rental value. Rental income is currently more than SEK 137 million per year and the economic vacancy rate is about 10%. The largest individual property is Kungstorget 1, in the centre of Göteborg. See the attached list of properties, where all the properties are shown. The properties will be taken over on 21-12-2003. Impact on Wallenstam The acquisition strengthens Wallenstam's position as the leading commercial player on the Göteborg market. After the acquisition, the value of all the company's residential properties accounts for 59% (69) of the total property value. Apartments account for 55% (62) of the properties' total floor space. After the acquisition, Wallenstam's total floor space amounts to approx. 1,256,000 m2 with an estimated market value of SEK 12.7 billion. The table below shows Wallenstam's figures as forecast for the whole of 2003, including properties acquired.* Key figures Proforma, 2003 31-12-2002 Profit margin, % 60.5 54.1 Return on reported equity, % 44.2 41.8 Book value of properties, MSEK 9,366 7,224 Market value of properties, MSEK 12,665 10,596 Direct rate of return on properties, % 7.2 6.9 Loan level, % 64.3 58.0 Reported equity ratio, % 11.5 11.2 Adjusted equity ratio after deferred tax, % 27.0 29.9 Per-share data Value of properties according to valuation 876 679 Reported equity 76.09 54.09 Net asset value after deferred tax 240 210 Number of shares, thousands 14,450 15,594 * properties purchased from Drott as well as properties on Avenyen acquired from Alecta. Organisation In conjunction with the property transaction, Wallenstam will carry out a reorganisation, which, in brief, will result in the company being divided into a residential division and a commercial division. This will be done in order to be able to focus more fully on the respective markets. The new organisation will take effect on 1 January, 2004. Goal attainment This year, Wallenstam will achieve a profit from property management of at least SEK 140 million. This means that Wallenstam will have met all its financial objectives two years earlier than originally planned, i.e. 2005. With its financial strength, Wallenstam considered itself ready to make this acquisition, which represents a large step in its development. "The decision to strengthen Wallenstam's commercial property portfolio is based on its strong faith in the market for commercial premises in Göteborg. This acquisition will make it possible to increase Wallenstam's future profits from property management by about SEK 20 million", says MD Hans Wallenstam in a comment on the acquisition. "With the company's current financial platform, this acquisition has given us a good balance between residential and commercial properties. After the weak economic climate in recent years, we are now seeing more and more signs of a recovery. Consequently, we felt that this was the right time to make this acquisition", says Hans Wallenstam. Göteborg, 23 October, 2003 Lennart Wallenstam Byggnads AB For further information, please contact Hans Wallenstam, Managing Director, phone +46 31-200 200, or Thomas Dahl, Director of Marketing and Information, phone +46 31-200 200 or +46 705 171 142. Encl: List of properties Property Address Area Total floor space Gullbergsvass 1:12 Hamntorget 6 Centre 5 981 Inom Vallgraven 15:3 Södra Hamng. 29, Drottningg. 30 Centre 4 456 Inom Vallgraven 17:13 Västra Hamngatan 8, m fl Centre 2 802 Inom Vallgraven 23:11 Södra Larmgatan 20, m fl Centre 3 110 Inom Vallgraven 25:1+4 Kungsportsplatsen 1, m fl Centre 5 521 Inom Vallgraven 26:8 Grönsakstorget 3, m fl Centre 4 194 Inom Vallgraven 26:9 Kungstorget 1 m fl Centre 14 382 Inom Vallgraven 53:14 Lilla Torget 1 Centre 3 197 Inom Vallgraven 53:15 Lilla Torget 2, m fl Centre 3 051 Nordstaden 24:11 Kronhusgatan 16 Centre 3 322 Stampen 6:17 Odinsgatan 13, m fl Centre 7 480 Arendal 5:1 Kärrlyckevägen 24 Arendal 2 398 Biskopsgården 45:1 Ruskvädersgatan 22, m.fl. Biskopsgården 2 305 Högsbo 5:7 Olof Asklundsgata 25 Högsbo 3 213 Kobbegården 6:169 Datavägen 18 Kobbegården 1 615 Kobbegården 6:55 Datavägen 29 Kobbegården 1 290 Kobbegården 6:731 Ekonomivägen 3-5 Kobbegården 4 251 Kärra 72:33 Tagenevägen 34 Kärra 6 165 Kärra 75:2 Transportgatan 37 Kärra 7 899 Kärra 75:4 Transportgatan 39 Kärra 8 000 Kärra 90:1 Orrekulla Industrigata 61 Kärra 10 740 Solsten 1:110 Företagsvägen 2 Härryda 2 885 Solsten 1:126 Mölnlycke företagspark Härryda 0 Solsten 1:132 Konstruktionsvägen 14 Härryda 4 953 Tynnered 1:15 Femvägsskälet 4 Tynnered 2 500 Önnered 762:369 Önnereds Brygga 1-17 Önnered 2 711 118 422 Wallenstam was established in 1944 and is a dedicated property company with about 300 properties in the three major urban areas Gothenburg, Stockholm and Helsingborg. The focus of the Group's portfolio is residential and commercial properties in Göteborg. The Group's rental income is more than SEK 1 billion and the value of its property portfolio is just under SEK 13 billion. The Group's Series B shares have been listed on the Stockholm Stock Exchange since 1984. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/10/23/20031023BIT01220/wkr0001.doc http://www.waymaker.net/bitonline/2003/10/23/20031023BIT01220/wkr0002.pdf

About Us

Wallenstam is a property company that manages, builds and develops properties for sustainable living and enterprise in Stockholm, Gothenburg and Uppsala. The property holdings are valued at around SEK 40 billion and the customer base consists of about 7,700 households and 1,000 enterprises. The total lettable area is around 1 million sq m. Wallenstam is self-sufficient in renewable energy through the company and its own wind turbines in operation. The company’s B shares have been listed on Nasdaq Stockholm since 1984.