Magnolia Bostad signs land allotment agreement with Örebro Municipality

In May 2015, Magnolia Bostad was awarded a land allocation in the new
neighbourhood Södra Ladugårdsängen in Örebro. Now that the land allotment
agreement is in place, the project’s next steps –building permits and
construction start – can be initiated. The project involves approximately 220
rental apartments and construction is scheduled to start in the second half of
2016.

Örebro Municipality applies a process based on flexible zoning plans, whereby
the municipality sets up a requirements specification for the new neighbourhoods
based on the municipality’s quality program. Property developers are
subsequently invited to participate in a pilot study for the project. The pilot
study results in a reservation agreement when the property developer has met the
requirements set for the project by the municipality.

For more information, please contact:
Fredrik Lidjan, CEO
+46 70 223 43 47, fredrik.lidjan@magnoliabostad.se

Magnolia Bostad develops efficient, attractive and functional residential
properties, including rental apartments, tenant-owned apartments and hotels, in
attractive locations primarily in Sweden’s growth areas. Our work is based on a
holistic approach where the operations are conducted in a manner that promotes
long-term, sustainable urban development. Magnolia Bostad's share (MAG) is
listed on Nasdaq First North. Erik Penser Bank is the Certified Adviser for the
Company. More information is available at www.magnoliabostad.se