Fabege has signed an agreement with the City of Stockholm to acquire the Apotekaren 22 block in Norrmalm for SEK 780m. This property comprises approximately 29,000 square metres of lettable space plus approximately 3,000 square metres of car parking. In addition, Fabege is buying out the freehold of Bocken 46 from the City of Stockholm for SEK 66m.

At the same time, the company is selling the leaseholds of Visthusboden 1, 2 and 3 in Eskede, as well as the leasehold of Orgelpipan 5 on Norrmalm to the City of Stockholm for SEK 325m. The acquisition of Orgelpipan 5 by the City of Stockholm guarantees implementation of a new commuter train exit to street level for the planned Citybanan line. The deals with the City of Stockholm are conditional on approval by the local government council.

Fabege has also disposed of Kurland 18 (Norrmalm) with 890 square metres of lettable space for SEK 35m. The purchaser is Anders Ivarsson AB.

The sales above produce an aggregate profit of around SEK 110m after tax, which will be reported during the fourth quarter of 2007.

"The deal with the City of Stockholm strengthens our presence is what is a priority sub-market for us. There is also interesting improvement potential at Apotekaren 22," comments Christian Hermelin, CEO of Fabege.


Fabege AB (publ)