Peab and Fabege sell property in Kungsholmen (Stockholm) for SEK 842 million

Peab and Fabege are selling their jointly owned (50/50) property Paradiset 29 on Lindhagensgatan in Stockholm to cross-border investment manager, Invesco Real Estate for one of their pan-European fund mandate.

– The real estate has been developed with proper sustainable construction technology and it has stable, attractive renters. This project has fit hand-in-glove with our business concept of using our experience and expertise to develop and improve areas and buildings,” says Peab’s Deputy CEO Mats Leifland. The property is being sold as a company with an underlying property value of SEK 842 million (100%) and will result in an after-tax profit of SEK 5 million for Peab, which will be recognised in the first quarter of 2010. In 2004 Peab and Fabege acquired Skogaholmsbageriet (a large bakery) in the Kungsholmen district in Stockholm. The bakery was demolished and developed into a new office and retail complex with food retailer ICA Maxi as its largest tenant. The property comprises 13,000 m2 of retail space and 10,300 m2 of offices plus garages. Catella acted as adviser for the seller, while Invesco Real Estate’s Nordic operating partner, Scius Partners, advised the buyer during the acquisition process. For further information, please contact: Mats Leifland, IR Peab +46 733-37 10 06 Niclas Brantingson, Head of Information Peab +46 733 37 20 06 Peab AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was released for publication at 8:31 am on 4 February 2010. Previous press releases from Peab are available at www.peab.com

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