STOCKHOLM, Sweden, Oct. 15, 2003 (PRIMEZONE) -- Wihlborgs has disposed of the property Klara Zenit (Blamannen 20) for SEK 3,200m. The profit amounts to SEK 500m, of which SEK 400m will be included in earnings for the fourth quarter of 2003. The remaining SEK 100m will be accounted for when settlement of the work contract takes place (see below). The purchaser is CGI* which will take possession of the property on 1 December 2003. Wihlborgs will manage the property for two years after CGI takes possession, which is included in the acquisition price.
The deal is divided into two parts: property sale for SEK 2,950m and signing of a work contract for SEK 250m. The sale price of SEK 2,950m is just above the external valuation made at the time of Wihlborgs' acquisition of Peab's share in Klara Zenit in December 2002.
Klara Zenit comprises a total of 65,000 sq.m of lettable space (35,500 sq.m offices, 17,000 sq.m retail, 6,500 sq.m residential, 3,000 sq.m storage space, 3,000 sq.m garage) at Drottninggatan-Master Samuelsgatan in central Stockholm. Between 2000 and 2003 the largest part was converted to modern commercial premises and homes, which have been fully let. The work contract relates to the older part of the property, known as Postgirohuset, which Wihlborgs will be converting and undertakes to let. Postgirohuset comprises around 12,000 sq.m and the move-in date will be at year-end 2005.
The deal gives Wihlborgs a liquidity injection of SEK 950m as of 1 December 2003. Taking account of reduced interest expenses and increased interest income, it is calculated that the sale will have a net effect on Wihlborgs' operating earnings from property management of SEK -40m on an annual basis.
"By selling Klara Zenit we are realising the value worked up in a property which, when Postgirohuset has been converted, will be fully developed," said Erik Paulsson, CEO of Wihlborgs Fastigheter.
Wihlborgs Fastigheter AB (publ) Erik Paulsson, President and CEO Tel.: +46 (0)8-555 148 18, +46 (0)733-87 18 18 Olle Knaust, deputy CEO and CFO Tel.: +46 (0)8-555 148 10, +46 (0)733-87 18 10 Mats Berg, communications manager Tel.: +46 (0)8-555 148 20, +46 (0)733-87 18 20
*CGI, Commerz Grundbesitz Investmentgesellschaft, manages Germany's largest open ended property fund, Haus-Invest. The managed capital in the fund at present amounts to around 12 billion euros. CGI forms part of Commerzbank AG.
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
http://www.waymaker.net/bitonline/2003/10/15/20031015BIT00950/wkr0001.doc
http://www.waymaker.net/bitonline/2003/10/15/20031015BIT00950/wkr0002.pdf