Diligentia announces forecast and property sales

Diligentia announces forecast and property sales Diligentia issues forecast of SEK 250 million for 1999 Properties in Stockholm sold for SEK 50 million capital gain Following today's Board of Directors' meeting, Diligentia issued a forecast for full-year income after net financial items, excluding capital gains, of SEK 250 million for 1999. This is an improvement of 25 percent compared with 1998 income. Diligentia is also selling properties for SEK 188 million and a capital gain of SEK 50 million. "I expect continued positive development in the rental and property market," says Diligentia CEO Mats Cederholm. "This development will have a positive impact on growth in rental income, which should result in an increase in net operating income of between 10 and 15 percent. This, together with the further sale of international properties, which directly has a positive impact on income, provides the potential for improved earnings." Diligentia today has sold three properties in the Stockholm area for a price of SEK 188 million and a capital gain of SEK 50 million. Two of the properties - a residential property in the Kungsholmen section and a property in Östermalm - were sold to newly formed condominium associations. The price per square meter was SEK 11,100 for the Bergamotträdet property in Kungsholmen and SEK 11,800 for the Storken property in Östermalm. The properties are not completely renovated. "Both sales have generated good capital gains," says Björn Tigler, Managing Director of Diligentia Stockholm. "We are now concentrating our residential holdings in the areas of Vasastaden, Södermalm and Solna." The third property, a commercial property known as the Bolinder business park, in Kallhäll, was developed by Diligentia in cooperation with the local municipality. The buyer is the construction company JM Byggnads AB. The property has development potential for residential housing. This sale has also generated a good capital gain. Sales and acquisitions of properties are a natural part of Diligentia's operations. Diligentia works with real estate development, which means that it will have a certain degree of turnover in its portfolio. Such sales help the company to realise the appreciation in the value of its properties. Stockholm, April 13, 1999 For further information, please contact: Mats Cederholm, Managing Director and Chief Executive Officer of Diligentia AB telephone: +46-8-5875 8110 or +46-70-426 8110 e-mail: mats.cederholm@diligentia.se Göran O. Westerberg, Head of Group Communications and Investor Relations, telephone: +46-8-5875 8120 or +46-70-426 8120 e-mail: goran.westerberg@diligentia.se www.diligentia.se e-mail: diligentia@diligentia.se ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/04/13/19990413BIT00320/bit0001.doc http://www.bit.se/bitonline/1999/04/13/19990413BIT00320/bit0002.pdf