NCC and Vasakronan sign billion-krona deal

NCC and Vasakronan sign billion-krona deal NCC and Vasakronan have reached an agreement in principle regarding a major real-estate transaction in Stockholm. NCC will sell Kista Science Tower to Vasakronan and will simultaneously purchase development rights in Sundbyberg, Stockholm. NCC will also receive an option to acquire additional development rights in the Stockholm region. NCC is to sell half of Kista Science Tower, with takeover scheduled for June 1, 2001. The sale will generate a capital gain of SEK 118 million for NCC. The agreement includes an option to sell the remainder of Kista Science Tower on completion in 2003. NCC and Vasakronan are to form an equally owned joint company for the utilization of development rights at Ursvik in Sundbyberg. Assuming that the detailed development plan proceeds in line with expectations, Ursvik will become a new urban district comprising approximately 2,800 residential units and 120,000 square meters of office space, of which NCC is expected to account for a major share. NCC is also expected to receive building contracts in an amount of approximately SEK 200 million related to the development project. The project is expected to be initiated in 2003 and extend over several years. "The transaction provides us with access to strategically important land in the highly expansive Stockholm region. The sale of Kista Science Tower is in line with our strategy of developing commercial properties and selling them to tenants or investors," says Magnus Mannesson, President of NCC Property Development. "We view the transaction as a continuation of our strategic efforts in Frösunda and Ulriksdalsfältet. It is important that NCC participates in and influences new development locations in and around Stockholm. These new development rights will strengthen us in our role as a powerful developer of housing and will help to ensure our long-term success," says Olle Håkanson, President of NCC Housing. For further information: Magnus Mannesson, President of NCC Property Development, tel +46 8 585 52275 Olle Håkanson, President of NCC Housing, tel +46 8 585 51610 Gisela Lindstrand, Press Officer NCC AB, tel +46 8 585 52346 or +46 70 392 9500 All of NCC's press releases are available on www.ncc.se NCC is one of the leading construction and property development companies in the Nordic and Baltic Sea region. NCC has annual sales of approximately SEK 40 billion, with 25,000 employees. The NCC Group is divided into six business areas: Contracting, Housing, Property Development, Industry, Telecom and Service. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/09/20010508BIT01470/bit0001.doc http://www.bit.se/bitonline/2001/05/09/20010508BIT01470/bit0001.pdf