FOERSLOEV, Sweden, Dec. 13, 2002 (PRIMEZONE) -- Peab (Stockholm:PEABb) has signed an agreement to sell its 25% participation right in the Klara Zenit project in Stockholm to Wihlborgs Fastigheter AB who owns the other 75%. Wihlborgs will take possession on December 16, 2002. The contract of sale will release a project development profit of SEK 175 million to Peab, which will be taken up as income for the fourth quarter of 2002.
The sale is being made at a market value of SEK 2,930 million.
"Klara Zenit was our hitherto largest development project and the sale is in line with our strategy of selling our projects once they have been completed," commented Peab CFO Mats Leifland.
Peab acquired its 25% stake in the Klara Zenit project in 1998. The conversion contract was won in January 2000 and will be completed at the beginning of 2003. The complex currently consists of some 65,000 square metres of apartments, offices, shops, storerooms and garages. Tenants include Debenhams department store, Hennes & Mauritz, Svenska Dagbladet and TeliaSonera's new head office.
Peab has also signed an agreement with Wihlborgs to acquire ten pieces of real estate in the Stockholm and Oresund areas, consisting for the most part of building permits and land.
For more information, please contact:
Mats Leifland, CFO Peab +47 733 37 10 06 Gosta Sjostrom, Information Manager Peab +46 733 37 10 10
Previous press releases from Peab are available at www.peab.com
Peab is one of the leading construction and civil engineering companies in the Nordic countries with 11 000 employees and a turnover of approximately SEK 19 billion. The Group's subsidiaries have strategically located offices in Sweden, Norway and Finland. The share is listed on the Stockholm Stock Exchange. The registered office of the Group is at Forslov, Skane in south of Sweden.
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