NCC sells second half of Kista Science Tower to Vasakronan with break-even result

NCC sells second half of Kista Science Tower to Vasakronan with break-even result In accordance with the option agreement entered into in 2001, NCC is now selling the second half of Kista Science Tower to Vasakronan. Independent valuation companies have assessed the full value of Kista Science Tower at SEK 1,208 million, meaning that the second half of the project will be sold with a break-even outcome for 2004. NCC started to build Sweden's tallest office building, Kista Science Tower, in the summer of 2000. The project rapidly became a landmark and a symbol for Kista. Kista Science Tower consists of a total of six buildings, the tallest of which is 32 stories, or slightly more than 160 meters. In total, the project consists of 52,000 square meters, of which rentable office space accounts for approximately 43,000 square meters, as well as 18,000 square meters of garage space. About 2,500 people will work in Kista Science Tower when it is fully leased. At present, approximately 40 percent of the project is leased. In June 2001, NCC sold half of Kista Science Tower to Vasakronan, which generated a development gain of SEK 118 million. That transaction included an option to also sell the second half of Kista Science Tower in connection with its completion. "In a short space of time, the Kista Science Tower has become established as the obvious landmark in Kista and as Sweden's most modern office building. Although the crisis in the IT and telecom markets has lengthened the leasing process, we are now witnessing an increase in interest. Throughout, it has been possible to maintain the rent levels originally calculated, which has been decisive for the valuation now agreed," says Mats Wäppling, President of NCC Property Development. Follow-up calculations for the entire Kista Science Tower project, including the development gain for the first half, the contracting profit for the complete project and the write-down conducted in 2003, show a marginally negative outcome for NCC's part. All of NCC's press releases are available on www.ncc.info NCC is one of the leading construction and property development companies in the Nordic region. NCC had in 2003 sales of SEK 45 billion, with 24,000 employees. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/08/02/20040802BIT20190/wkr0001.pdf