Näckebro to leave London

Näckebro to leave London The Board of Directors of Näckebro AB has decided to no longer regard London as a strategic market. The remaining property portfolio will be phased out in 1999 at the latest. Näckebro's priority markets are Stockholm, Malmö and Gothenburg. The current favourable property climate in London gives Näckebro an opportunity to leave the market on favourable terms. Recently, Näckebro sold its property Southside in London for SEK 1,080 M. Following this sale, the company has 15 properties with a book value of approximately SEK 650 M, which will be sold in stages. The aim is to have totally discontinued the company's British operations in 1999 at the latest. Näckebro's Board has also updated the strategic plan that was first presented in November 1996. The strategy regarding a concentration in Sweden to the priority areas Stockholm, Malmö and Gothenburg, remains unchanged. The property portfolio shall comprise approximately two-thirds commercial property and approximately one-third residential property. Näckebro's overall goal is through its management and enhancement of well- located, high-standard properties, to satisfy tenants' expectations with respect to contracted functions, services and environment and to be the most attractive property company on the Stockholm Stock Exchange. Financial targets include an equity/assets ratio, adjusted for surplus values and deficits in the property portfolio, of approximately 40%. Over time, provided the equity/assets target is met, half of net profit on ordinary activities shall be distributed to shareholders. Näckebro's strategy is to be an innovative and stable property company. Näckebro's organisation shall be specialised and efficient. The property portfolio will be managed by external management companies with a local presence so that cost efficiency, flexibility and high customer benefit are achieved. Näckebro shall have the competence to develop its own projects which may include both new building and renovation. The property portfolio should contain a well-balanced proportion of projects and properties with development potential. Fully refurbished properties may be sold when the potential for growth in value is considered to be low. Näckebro will continue to apply an open information policy in order to facilitate communications with both customers and shareholders. Please direct any questions to: Lennart Schönning, Chief Executive, tel +46 8 412 19 01 or +46 70 645 02 50.