Mandamus a partner in Haninge acquisition

Mandamus a partner in Haninge acquisition In partnership with Länsförsäkringar's life-insurance company and the Federation of Swedish Farmers (LRF), Mandamus Fastigheter AB has formed a consortium to acquire residential properties in Haninge, a southern suburb of Greater Stockholm. The properties comprise 4,236 flats, of which 1,809 are located in Västerhaninge and 2,427 in Brandbergen. The vendor is Haninge Bostäder AB, a subsidiary of Venantius AB. The completion date is 1 June this year. Costs of acquisition, including land-registry charges, amount to SEK 1,388m. Each of the consortium partners is contributing a third of the consortium's capital deposit. In conjunction with the acquisition, Mandamus has signed a management agreement with the consortium whereby Mandamus will manage the Haninge properties in accordance with the company's own management concept. Catella Property Asset Management AB has assisted in the purchase as an adviser to the buyers, and will also assist in the further development of these properties. The acquisition is in line with Mandamus' strategy of expanding in Sweden's growth areas, and brings the number of housing units in Greater Stockholm managed by Mandamus to a total of 10,300 flats, and the total number of flats managed to some 17,600. Altogether, around 80% of the housing units managed by the group are now located in Mandamus' growth areas Stockholm, Gothenburg, Halmstad and Malmö/Lund. All in all, the acquisition comprises 327,953 m2, of which 310,444 m2 consists of housing units and 17,509 m2 of business premises. The rental value of the properties acquired amounts to just over SEK 250m. The vacancy rate is highly marginal, and relates mainly to garage space and small-scale business premises. Comments from Mandamus' Managing Director, Anders Johansson During the three years for which Mandamus has operated as a publicly quoted company, we have focused on becoming specialists in management of residential properties, and striven purposefully to develop an effective management concept, close to the customer, for these operations. It is therefore gratifying that this management concept will now be applied in Haninge too, in the property stock where Mandamus is one of the three owners. To Mandamus, it represents the addition of another line of business to our operations, and enables us to increase our profitability. The deal now concluded is expected to improve Mandamus' pre-tax profit, on an annual basis, by some SEK 15m. Mandamus' participation in the Haninge purchase is the first time this company has joined in making an acquisition through a consortium. We see this as affording highly interesting development potential, since it enables us to take part in large acquisitions with a limited input of venture capital. Accordingly, Mandamus gains new opportunities to boost its management volume, with favourable marginal effects as a result. Queries Please address any queries to Mandamus' Managing Director Anders Johansson on phone +46-8-566 130 00 or e-mail anders.johansson@mandamus.se, or Deputy Managing Director Bengt Evaldsson on phone +46-8-566 130 00, e-mail: bengt.evaldsson@mandamus.se. Mandamus is a property company that aims to own, develop and manage residential properties with a high yield, mainly in growth areas in Southern and Central Sweden. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/07/20010507BIT01020/bit0002.doc http://www.bit.se/bitonline/2001/05/07/20010507BIT01020/bit0002.pdf