Drott sells 27 Gothenburg properties for SEK 1,420 million

Drott sells 27 Gothenburg properties for SEK 1,420 million The sale is an element in the new strategic direction for Drott's commercial real estate operations, where the focus is on properties in Stockholm. The portfolio comprises 27 properties - three of which are leaseholds - with 118,400 square meters of rentable space (including 3,400 sq. m. of residential space). The occupancy rate is 90 percent. Current leases generate annual rent of SEK 131 million and an operating surplus of SEK 84 million. The sale is being executed through a special purpose company, with the closing and payment of the full proceeds scheduled for December 30, 2003. The buyer is Lennart Wallenstam Byggnads AB (publ), a publicly listed real estate company based in Gothenburg. Effects for Drott The sales price amounts to SEK 1,420 million. An independent appraisal of the market value of Drott's property portfolio was made as per December 31, 2002. The market value of the properties now being sold was appraised at the time at SEK 1,473 million. For accounting purposes, the sale results in a gain of SEK 165 million, which will be reported in the fourth quarter 2003. A provision of approximately SEK 20 million for estimated future costs associated with the sale is accounted for in the gain. The fiscal residual value in the portfolio is approximately SEK 425 million less than the sales price. The effect on liquidity based on the difference is estimated at SEK 25 million. Outstanding tax loss carryforwards are not affected by the sale. The sale initially reduces the Group's annual cash flow by approximately SEK 40 million. The sale requires negotiations pursuant to the provisions of the Co- determination in the Workplace Act, which will begin immediately. Catella Corporate Finance has served as Drott's adviser in the sales process. Drott AB (publ) For further information, please contact: Anders Böös, President of Drott AB, +46 8 769 30 10 Schedule of real estate Area Properties Address Rentable Of which sold space residentia excl. l space garages Inner Gullbergsvas Hamntorget 6 5,981 0 city s 1:12 Inner Inom Södra Hamng. 29, 4,456 0 city Vallgraven Drottningg. 30 15:3 Inner Inom Västra Hamngatan 2,802 0 city Vallgraven 8, etc. 17:13 Inner Inom Södra Larmgatan 3,110 0 city Vallgraven 20, etc. 23:11 Inner Inom Kungsportsplatsen 5,521 0 city Vallgraven 1, etc. 25:1+4 Inner Inom Grönsakstorget 3, 4,194 0 city Vallgraven etc. 26:8 Inner Inom Kungstorget 1 14,382 3 252 city Vallgraven etc. 26:9 Inner Inom Lilla Torget 1 3,197 0 city Vallgraven 53:14 Inner Inom Lilla Torget 2, 3,051 0 city Vallgraven etc. 53:15 Inner Nordstaden Kronhusgatan 16 3,322 136 city 24:11 Inner Stampen 6:17 Odinsgatan 13, 7,480 0 city etc. Arendal Arendal 5:1 Kärrlyckevägen 24 2,398 0 Biskopsgå Biskopsgårde Ruskvädersgatan 2,305 0 rden n 45:1 22, etc. Högsbo Högsbo 5:7 Olof Asklundsgata 3,213 0 25 Kobbegård Kobbegården Datavägen 18 1,615 0 en 6:169 Kobbegård Kobbegården Datavägen 29 1,290 0 en 6:55 Kobbegård Kobbegården Ekonomivägen 3-5 4,251 0 en 6:731 Kärra Kärra 72:33 Tagenevägen 34 6,165 0 Kärra Kärra 75:2 Transportgatan 37 7,899 0 Kärra Kärra 75:4 Transportgatan 39 8,000 0 Kärra Kärra 90:1 Orrekulla 10,740 0 Industrigata 61 Härryda Solsten Företagsvägen 2 2,885 0 1:110 Härryda Solsten Mölnlycke 0 0 1:126 företagspark Härryda Solsten Konstruktionsväge 4,953 0 1:132 n 14 Tynnered Tynnered Femvägsskälet 4 2,500 0 1:15 Önnered Önnered Önnereds Brygga 1- 2,711 0 762:369 17 118,422 3,388 Drott is being divided into two focused, publicly listed companies. Shareholders at the Annual General Meeting in 2004 will vote on the Board of Directors' proposal to distribute Bostadsaktiebolaget Drott, a streamlined residential real estate company active in around ten Swedish growth regions. As proposed, today's Drott would at the same time change its name to Fabege AB, an active, streamlined commercial real estate company focused on Stockholm. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/10/23/20031023BIT00130/wkr0001.doc http://www.waymaker.net/bitonline/2003/10/23/20031023BIT00130/wkr0002.pdf