Fabege sells property holding to part-owned company

Fabege is, together with Peab and Brinova, forming a new residential property company, Tornet AB, which will own and develop rental apartments.

The company will develop and manage existing properties and will also build new rental properties in municipalities where there is currently a shortage of housing, primarily in the Stockholm, Mälaren Valley, Gothenburg and Öresund regions. Peab and Fabege will hold 45 per cent each in Tornet and Brinova 10 per cent.

Under the terms of the deal, Fabege will exchange residential properties in Tensta/Rinkeby outside Stockholm for a 45 per cent stake in Tornet AB in January 2010. The properties have a total residential floor space of about 93,000 m2 in the form of rental apartments worth an estimated SEK 600m.

“We see the deal as one more step in our ambition to focus our commercial portfolio. It will enable us to devote even more attention to our core business and to do what we are really good at,” Christian Hermelin, Fabege’s CEO, says. “The new residential property company will have a volume and a focus that put it in an even stronger position to successfully develop its residential portfolio. It is an excellent solution for all parties,” Christian Hermelin adds.

Fabege AB (publ)

20 Nov 2009 8:35 AM

For more information

For further information, please contact:

Christian Hermelin, CEO of Fabege, phone +46 (0)8-555 148 25, +46 (0)733-87 18 25

Åsa Bergström, Deputy CEO and CFO, phone +46 (0)8-555 148 29, +46 (0)706-66 13 80

Annette Kaunitz, Director of Communications, phone +46 (0)8-555 148 20, +46 (0)708-390 337

This constitutes information that Fabege AB (publ) may be legally obliged to publish under the Securities Market Act and/or the Financial Instruments Trading Act. The information was released for publication at 8:35 am on 20 November 2009.

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