Hemfosa Fastigheter acquires properties valued at SEK 3.3 billion as part of exchange transaction with Hemsö

As a feature of a strategic exchange transaction with the property company
Hemsö, Hemfosa Fastigheter is to acquire 60 public properties in 11 towns in
Sweden with an underlying property value of nearly SEK 3.3 billion. At the same
time, Hemfosa is selling a site leasehold in Huddinge, with an underlying
property value of slightly more than SEK 1.1 billion, to Hemsö. As a result of
this transaction, Hemfosa strengthens its position in its prioritized public
 properties segment.
The acquired properties are located mainly in the Stockholm region, Härnösand,
Sundsvall, Umeå, Karlskrona, Finspång, Malmö and Eksjö, with an underlying
property value of SEK 3,266 million. The total leasable area amounts to
approximately 275,000 sqm. The tenants are predominantly municipal operations
such as retirement homes, schools and care centers, but also include the Police
Authority and the National Courts Administration. The leasing rate is 98 percent
and the average term of the leases was 9.0 years as of year-end 2014.

As a feature of the agreement, Hemfosa is selling the leasehold to the
Medicinaren 19 property in Huddinge, with an underlying property value of SEK
1,130 million, to Hemsö.

“We are delighted to have been able to implement this strategic transaction and
thus sharply expand our portfolio with public properties in such segments as
healthcare and schools. Accordingly, the acquisition is an important step in
achieving Hemfosa’s strategy for growth and focusing on the public properties
segment,” says Jens Engwall, CEO of Hemfosa Fastigheter.

The acquisition from Hemsö is contingent upon approval from the Swedish
Competition Authority. Possession is scheduled to be taken before year-end 2014.
For further information, please contact:

Jens Engwall, CEO, jens.engwall@hemfosa.se, mobile phone +46 70-690 6550,
switchboard +46 8-448 04 80
About Hemfosa Fastigheter

Hemfosa is a Swedish real estate company with a well-balanced and geographically
diversified property portfolio focusing on public properties with state and
municipalities as the largest tenants. This provides stable cash flows and a
healthy yield. In conjunction with value creation, Hemfosa also aims to actively
participate in the transaction market. At September 30, 2014, Hemfosa owned
commercial properties in Sweden with a total property value of approximately SEK
20.5 billion, including the company’s share of the property value of joint
ventures. The company’s share has been listed on Nasdaq Stockholm Mid Cap since
March 21, 2014. Read more at www.hemfosa.se.