Peab forms Brinova Fastigheter

Peab forms Brinova Fastigheter AB As previously announced, the board of Peab has decided to propose that the group's entire holding of managed properties be distributed to Peab's shareholders. A decision on the proposal will be taken at Peab's annual general meeting in May 2003. In preparation for the planned distribution of the holding, the properties have been transferred to a newly formed property company, Brinova Fastigheter AB ("Brinova"). The intention is to have Brinova's shares listed on the stock exchange during autumn 2003. Brinova and the company's operations are presented below. Background Brinova was formed in December 2002 when Peab transferred its holding of managed properties in the company's wholly owned subsidiaries Fastighets AB Skånehus ("Skånehus") and Birsta Fastigheter AB ("Birsta") and a number of directly owned managed properties to Brinova. Skånehus was formed in 1997 to actively own residential and commercial properties in Skåne and the south of Halland. The property holding consists of 45 properties with a rentable area of approximately 204 000 sq.m. Birsta was formed in 1996 to own logistics properties in Sweden. Birsta has been a wholly owned subsidiary of Peab since December 2002. The property holdings consist of 13 logistics properties, with Danzas ASG and Green Cargo as the largest tenants. The rentable area is approximately 212 000 sq.m. The remaining properties consist of 19 directly owned managed properties, situated mainly in the south of Sweden, with a rentable area of approximately 148 000 sq.m. Operations, objectives and strategy Brinova will focus on high-yield properties, mainly in the south of Sweden. Logistics properties will be a prioritised growth area. Brinova's objective is to achieve a high, stable return on shareholders' equity in the long term through active ownership. One of Brinova's financial objectives is that the proportion of risk bearing capital will be higher than 25 per cent. Brinova also intends to become one of the leading independent market actors in high-yield properties in the south of Sweden. To increase its size and market presence, Brinova will have an active acquisition strategy. The company will also acquire both property holdings and property companies. The aim is also to finance acquisitions with Brinova shares . Brinova will develop its business operations continuously through new investments, the purchase and sale of properties and continuous administrative measures. Property holdings Brinova's holding consists of 77 properties in 28 locations with a total rentable area of approximately 564 000 sq.m. 55 per cent of the rentable area consists of warehousing and distribution premises of which the majority are situated along the major roads between Göteborg, Stockholm and Malmö. Residential premises constitute 22 per cent of the rentable area, and most are located in Malmö. The type and rentable area of the properties are shown in the table below: [REMOVED GRAPHICS] The table below shows the rent receipts from the different types of property holding: [REMOVED GRAPHICS] The map and table below show the properties' locations, and the rentable area and rent receipts by location: [REMOVED GRAPHICS] [REMOVED GRAPHICS] Total rent receipts in 2002 were SEK 318 million. The degree of vacancy was approximately 4 per cent. Rent receipts in the five largest locations accounted for 60 per cent of the total. The properties' total book value, concerning owned and contracted property, was SEK 2 250 million per 31 December 2002, which is equivalent to the market value according to independent property valuations. The properties' (direct) yield is in excess of 8,5 per cent. Capital structure and financing The Brinova Group's balance sheet total was SEK 2 700 million on 31 December 2002. Shareholders' equity was SEK 470 million. Refinancing of the property holding is under way. As part of the financing, and also as part of the risk bearing capital, Brinova intends to raise long-term convertible debenture loans from Peab. Management and organisation It is proposed that the external board that has steered Skånehus since 1997 constitute the foundation of the new board for Brinova. Lars-Ove Håkansson, Göran Hellström, Bengt Hylén and Mats Paulsson have been nominated as board members. In addition, Boel Flodgren has been nominated as new ordinary member of the board. It is intended that Lars- Ove Håkansson will continue as chairman. Recruitment of a CEO is under way. Skånehus' present administration and property management will be the foundation for Brinova's administration. Skånehus' and Birsta's administrative organisations will be transferred to Brinova during the spring. Company officers are amongst others Lars Nilsson from Skånehus and Mikael Halling from Birsta. The company has its headquarters and registered office in Helsingborg. Class of shares and listing Brinova will have one class of share. Listing on the Stockholm stock exchange's O-list is planned for October/November 2003. Preliminary timetable 2003 First week in May Information brochure published in time for Peab's annual general meeting on Peab's homepage www.peab.se 15 May Decision on distribution proposal at Peab's annual general meeting September Share prospectus ready October/November Record day to secure rights to shares and listing of Brinova's shares For more information, please contact: Mats Paulsson, CEO Peab +46 431 89 135 Mats Leifland, CFO Peab +46 733 37 10 06 Gösta Sjöström, Information Manager Peab +46 733 37 10 10 Previous press releases from Peab are available at peab.com Peab is one of the leading construction and civil engineering companies in the Nordic countries with 11 000 employees and a turnover of approximately SEK 19 billion. The Group's subsidiaries have strategically located offices in Sweden, Norway and Finland. The share is listed on the Stockholm Stock Exchange. The registered office of the Group is at Förslöv, Skåne in south of Sweden ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/02/13/20030212BIT01390/wkr0001.doc http://www.waymaker.net/bitonline/2003/02/13/20030212BIT01390/wkr0002.pdf