NCC sells 250 apartments to HSB in Linköping

NCC and HSB have signed a Letter of Intent under which HSB undertakes to acquire approximately 250 apartments at Södra Ekkällan, Linköping. The order is worth SEK 310 – 350 million and construction is scheduled to commence in spring 2007.

Most of the apartments, or about 180 of them, will be offered under tenancy rights. The remaining apartments will be tenant-owned units. The new area will consist of an attractive mix of slab blocks and point towers, but its exact layout has not yet been completed because work on the detailed development plan is still under way. The definitive value of the transaction depends on how the detailed development plan is formulated, which affects floor area and the distribution of the apartments. NCC acquired the site from Vasallen and has subsequently sought a partner who primarily wanted to invest in apartments under tenancy rights. At the Södra Ekkällan residential area, NCC and HSB will jointly develop a completely new urban district that will be characterized by considerable variation. Södra Ekkällan will adjoin the row houses in Tinnerbäcksgränd that were previously built by NCC. The urban district will be located centrally, close to the university hospital. Construction of Södra Ekkällan is scheduled to commence in spring 2007 and the first apartments will be ready for occupancy during summer 2008. The entire area is expected to be completed by 2015. The preconditions for completion of the transaction are that a binding agreement is signed before October 31, 2006 and that the agreement is approved by the Board of Directors of both of the companies. For further information, please contact: Ulf Thorné, Press Relations Manager, NCC Group, +46 8 585 523 46, +46 70 214 77 27