Catena streamlines portfolio, sells properties for SEK 235 M

Catena AB (publ) has signed a final agreement with Kenmore Property Group covering the sale of six properties located outside Catena’s prioritized areas. The transaction, which is in line with Catena’s long-term strategy, is at a purchase consideration of SEK 235 M and results in a capital gain of about SEK 38 M.

With this sale, Catena is divesting all properties located outside the four prioritized growth areas in the Nordic region: Stockholm, Gothenburg, Öresund and Oslo.

“This means that we can check off another milestone. We have been consistently clear about our strategy: to streamline the portfolio to become a leading player in commercial properties in a number of strategic locations. This binding agreement is a distinct sign that we are fulfilling our plans – and that we are doing so with a favorable result,” says Peter Hallgren, President of Catena.

The portfolio of properties is being sold for SEK 235 M, corresponding to 21% above the valuation at year-end 2006. The total capital gain is about SEK 38 M, corresponding to SEK 3.30 per share.

“In addition to being strategically important, this transaction provides a financial contribution whereby we can move forward with added strength and sustainability in our prioritized regions,” says Peter Hallgren.

The properties being sold are located in Trelleborg, Skara, Skövde, Falköping, Eskilstuna and Strängnäs and comprise a total of 35,000 square meters. The sale was announced previously in conjunction with a Letter of Intent signed between the parties in December 2006.

The sale will be recognized in the accounts for the first quarter of 2007 and is being carried out as a company transaction. The properties will be transferred as of March 31, 2007.