Drott sells all its commercial properties in Öresund region

Drott sells all its commercial properties in Öresund region for SEK 2.2 billion 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 45 properties - six of which are leaseholds - with 201,000 square meters of rentable space (including 8,000 sq. m. of residential space). The occupancy rate is 94 percent. Current leases generate annual rent of SEK 222 million and an operating surplus of SEK 143 million. The sale is being executed through a special purpose company, with the closing scheduled for December 30, 2003. The buyer is Kungsleden AB. Effects for Drott The sales price amounts to SEK 2,223 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 2,230 million. For accounting purposes, the sale results in a gain of approximately SEK 280 million, which will be reported in the fourth quarter 2003. The fiscal residual value in the portfolio is approximately SEK 770 million less than the sales price. The effect on liquidity based on the difference is estimated at SEK 50 million. Outstanding tax loss carryforwards are reduced by approximately SEK 40 million. The sales proceeds will be received upon closing, with the exception of SEK 350 million, which will be received in 2004. The sale initially reduces the Group's annual cash flow by approximately SEK 70 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. Following the sale, Drott's property portfolio in the Öresund region is concentrated on residential properties. In Malmö, Drott owns a total of 44 properties with 2,606 apartments, and in Lund it owns nine properties with 537 apartments. Drott AB (publ) For further information, please contact: Anders Böös, President of Drott AB, +46 8 769 30 10 Schedule of real estate Properties Address Rentable Of Area sold space which excl. reside garages ntial space Central Claus Baltzarsgatan 41 6,204 Malmö Mortensen 29 Central Davida 15 Kungsgatan 6 11,553 Malmö Central Druvan 1 Engelbrektsgatan 7 2,782 Malmö Central Gustav Adolf 12 Lilla Nygatan 11 3,157 Malmö Central Kamelen 14 Storgatan 43 13,500 Malmö Central Laxen 23 S Förstadsgatan 34 7,455 Malmö Central Lejonet 2 Stortorget 17 5,679 314 Malmö Central Oscar 16 Södergatan 3 2,115 Malmö Central Stjärnan 10 Engelbrektsgatan 6 901 Malmö Central Söderport 7 Gustav 2,052 556 Malmö Adolfs Torg 43 Central Söderport 8 Per Weijersgatan 4 1,582 Malmö Central Söderport 9 Gustav 2,100 Malmö Adolfs Torg 47 Central Von Conow 51 Kalendegatan 4 1,929 Malmö Central Von Conow 54 Baltzarsgatan 31 20,810 2,582 Malmö Malmö Fosie Armringen 2 Agnesfridsvägen 190 4,867 Malmö Brudbuketten 11 Derbyvägen 24 1,344 Jägersro Malmö Brännaren 3 Industrigatan 13 4,380 Sorgenfri Malmö Brännaren 8 Agneslundsvägen 14 5,395 Sorgenfri Malmö Dadeln 23 Industrigatan 4 3,480 Sorgenfri Malmö Fosie Flintkärnan 2 Agnesfridsvägen 154 4,608 Malmö Flygbasen 4 Höjdrodergatan 17 1,681 Bulltofta Malmö Flygledaren 1 Höjdrodergatan 14 916 Bulltofta Malmö Gråsejen 1 Prångaregatan 5 2,365 Limhamn Malmö Gullriset 4 Camillavägen 17-21 648 Hindby Malmö Hammaren 5 S Bulltoftavägen 17-19 4,299 Kirseberg Malmö Fosie Krukskärvan 11 Flintyxegatan 8A 2,610 Malmö Kupolen 2 Krossverksgatan 7-17 9,922 Limhamn Malmö Masugnen 22 Annelundsgatan 59 2,369 Sofielund Malmö Sämjan 2 Bokgatan 18 m fl 9,417 Sofielund Malmö Fosie Torshammaren 11 Hornyxegatan 6 647 Malmö Vakteln 17 Linnégatan 34 2,560 196 Limhamn Malmö Vakteln 3, 23 Järnvägsgatan 40 1,871 969 Limhamn Malmö Vildanden 8 Geijersgatan 4-6 8,561 Limhamn Malmö Vildanden 9 Geijersgatan 2 5,825 Limhamn Helsingborg Asien 20 Kvarnstensgatan 11 m fl 2,548 Gåsebäck Helsingborg Dolken 3 Mörsaregatan 12 3,845 Berga Helsingborg Fiskaren 40,41 Kullagatan 31-37 6,743 3,418 Centrum Delfinen 17 Helsingborg Jupiter 12 Grenadsjärgatan 8 1,459 Ringstorp Helsingborg Kavalleristen 11 Bergavägen 1A 2,184 Berga Central Rådhuset 7 Stortorget 7 3,092 Helsingborg Central Springposten 3 Springpostgränden 3 2,127 Helsingborg Central Terminalen 1 Järnvägsgatan 10-12 19,239 Helsingborg 200,821 8,035 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/2003/11/04/20031104BIT00070/wkr0001.doc http://www.waymaker.net/bitonline/2003/11/04/20031104BIT00070/wkr0002.pdf