D. Carnegie & Co to become the largest listed residential property company in Sweden

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| Source: D. Carnegie & Co
D. Carnegie & Co AB (publ) (”D. Carnegie & Co” or the “Company”) has entered
into an agreement with the owners of Hyresbostäder i Sverige II AB (“HBS II”),
managed by Obligo Investment Management, to merge their respective property
portfolios. D. Carnegie & Co will, after completion of the transaction, hold a
residential property portfolio corresponding to approximately SEK 9,500 million
and approximately 12,000 residential apartments, focused in and around Stockholm
and the Mälardalen area. Today, the Company will announce a notice to an
extraordinary general meeting in connection with the transaction.
The transaction will be effected by D. Carnegie & Co acquiring HBS II including
its properties and property management business. The acquisition is based on an
underlying value of SEK 6,560 million and part of the payment will consist of 26
million B-shares in D. Carnegie & Co. Further, the payment includes a vendor’s
note of SEK 200 million, cash and convertible bonds corresponding to SEK 1,020
million. The current owners in HBS II will become significant owners in D.
Carnegie & Co, holding around 35 per cent of the capital. After completion of
the transaction, D. Carnegie & Co’s bank debt will remain below 60 per cent of
the Company’s property values.

D. Carnegie & Co will today announce a notice to an extraordinary general
meeting for resolutions on the requisite amendments of the articles of
association and authorisations to the board to issue the securities which
constitute part of the purchase price in the transaction.

HBS II is owned by Norwegian and Swedish investors through Boligutleie Holding
II AS (appr. 80 per cent) and Hyresfastigheter Holding II Blå AB (appr. 20 per
cent).

Both D. Carnegie & Co and HBS II maintain highly experienced management team. D.
Carnegie & Co through Stendörren and HBS II through Obligo Investment Management
and its own organisation for property management, Graflunds AB. After the
transaction, the intention is to co-ordinate the management of all properties
into what will be one of Sweden’s most experienced and professional property
management teams.

The closing of the transaction is subject to approval by shareholders’ meetings
in both parties and approval from the Swedish Competition Authority.

Ulf Nilsson, VD, comments:
- Through this transaction, we are implementing our stated growth strategy and
will be the largest listed residential property company in Sweden. We have a
clear ambition to grow further, and not least, establish a property management
structure that will create substantial value for our shareholders in the coming
years, says Ulf Nilsson, CEO of D. Carnegie & Co.

Advisors

Savills and Nordier are commercial advisors and the law firms Glimstedt and
Vinge are legal advisors to D. Carnegie & Co, Agasti Wunderlich Capital Markets
is financial advisor and the law firms Delphi and Selmer are legal advisers to
HBS II in the transaction.

About D. Carnegie & Co
D. Carnegie & Co is a real estate company focusing on residential properties
within the Stockholm region and other growth areas. The Company’s business
concept is to own and manage its real estate portfolio and to gradually
refurbish apartments in connection with the natural turnover of tenants. This
can take place quickly and cost-efficiently due to the Company’s established
refurbishment method, BosystemTM. The refurbishment model is popular with both
tenants and the Swedish Union of Tenants (Sw. Hyresgästföreningen) as the
apartments are attractively refurbished without any tenants being forced to
vacate the premises. The Company also develop new building rights on its
properties.

At the beginning of 2014, Stendörren transferred its residential properties to
D. Carnegie & Co and thereby became the owner of a real estate portfolio
consisting of residential properties in Stockholm’s growth areas. As of 31
December 2013, the market value amounted to SEK 2,929 million and the total
rental value was estimated to SEK 287 million per year. The financial leasing
rate is high and none of the properties are vacant. D. Carnegie & Co’s real
estate portfolio is situated in the Stockholm region. D. Carnegie & Co is listed
on NASDAQ OMX First North as of April 9, 2014. G&W Fondkommission is the
company’s Certified Adviser.

About Hyresbostäder i Sverige II AB
HBS II has since 2004 been a sizeable participant in the Swedish residential
property market with a portfolio of over 700,000 sqm of residential area. The
properties are located in Eskilstuna, Strängnäs, Södertälje, Huddinge, Haninge,
Bro, Märsta, Uppsala och Göteborg. HBS II has an own property management
organisation, Graflunds AB, which manages all HBS II’s properties and also
external properties.  HBS II is owned by Norwegian and Swedish investors through
Boligutleie Holding II AB and Hyresfastigheter Holding II Blå AB. According to
the investment mandate, the property portfolio will be disposed of between 2013
and 2016, depending on most optimal market conditions.

Obligo Investment Management is an asset management company currently managing
appr. SEK 50 billion under mandate from institutions and private investors.
Obligo manages more than 25 different investment structures.  Obligo Investment
Management AS is 100 % owned by Agasti Holding ASA.

For further information, please contact:

Ulf Nilsson, CEO, D. Carnegie & Co AB
+46 (0)8 121 317 00

Further information is available on www.dcarnegie.se