Wallenstam expands in Stockholm
Wallenstam expands in Stockholm Wallenstam has acquired a large housing area in Gamla Råcksta from Stena Fastigheter AB. The acquisition consists of 1,100 apartments (approx. 70,000 m2) at a price of about SEK 5,000/m2. Gamla Råcksta is a well-built housing area from the 1950s. At the same time, Wallenstam has sold a housing area (approx. 25,000 m2) in Askim, Gothenburg, to Stena for a price of about SEK 160 million. Wallenstam has also sold its share of the property, jointly owned with Stena, on Fiskhamnsgatan 8. Wallenstam has sold a residential property with about 17,000 m2 of floor space in Tensta, Lättingebacken 4-46, to a private investor for SEK 80 million. These transactions will generate a property management surplus and a capital gain of about SEK 85 million. In Gothenburg, Wallenstam has purchased two commercial properties; a small property of about 800 m2 for SEK 5 million (Lilla Munkebäcksgatan 6) and a property with about 2,300 m2 of floor space in the suburb of Högsbo for SEK 16 million (Gruvgatan 12-14). Hans Wallenstam, Managing Director, comments: "With the high demand for housing in Stockholm and the fact that the population in the Stockholm region is increasing by about 20,000 persons per year, we believe that expanding in the housing sector in Stockholm is the right strategy. In our opinion, Gamla Råcksta has considerable growth potential. Gamla Råcksta is just what Wallenstam has been looking for in Stockholm for a long time." Lennart Wallenstam Byggnads AB Gothenburg, 26 October, 1999 For further information, please contact Hans Wallenstam, Managing Director, phone: +46-31 200 000. Wallenstam was founded in 1944 in Gothenburg and is one of Sweden's major dedicated property companies with more than 300 properties in the three major urban areas Gothenburg, Stockholm and Helsingborg. The company's portfolio is dominated by residential properties which respresent about 70% of the total floor space and 75% of the rental income. Commercial properties are located primarly in Gothenburg. The company's series B-shares have been publicly listed at the Stockholm Stock Exchange since 1984. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/10/27/19991027BIT00500/bit0001.doc http://www.bit.se/bitonline/1999/10/27/19991027BIT00500/bit0002.pdf