Wallenstam sells development rights in Linnéstaden

Wallenstam sells development rights in Linnéstaden Wallenstam has sold 100 development rights equivalent to about 11,000 m2 in Linnéstaden in central Gothenburg. The buyer is JM AB and the take-over date is at the beginning of the year 2000. The selling price was SEK 40 million and will generate a large capital gain for Wallenstam. Hans Wallenstam, Managing Director, comments on the sale as follows: "This sale should be viewed in the light of the fact that the present system for setting rent levels makes it difficult to achieve profitability in the production of new rental apartments. For this reason, we concluded that the commercially most correct decision would be to sell the development rights, thus generating a capital gain for the company." Lennart Wallenstam Byggnads AB Gothenburg, 28 December, 1999 For further information, please contact Thomas Dahl, Marketing and Information Director, phone: +46-31 200 000 or +46-705 171 142. 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. Residential properties represent about 65% of the total floor space. The maintaining part is commercial property, primarly located 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/1999/12/29/19991229BIT00090/bit0001.doc http://www.bit.se/bitonline/1999/12/29/19991229BIT00090/bit0002.pdf