STOCKHOLM, Sweden, March 12, 2002 (PRIMEZONE) -- Drott has acquired the Smyckeparken residential area, located in Frolunda, a part of western Gothenburg. These 895 units were built between 1966 and 1968, and underwent extensive renovation from 1991 to 1994. The price (8,000 SEK/sq. m.) corresponds to a direct rate of return of 7.2%. The date of possession will be March 22, 2002.
This purchase follows Drott's business concept of acquiring, developing and managing commercial and residential properties in growing regions, and, when appropriate, capitalizing on the accumulated value of in fully developed properties.
The independently appraised market value of Drott's properties as of December 31, 2001 was SEK 39.3 billion, of which 78% was located in the Stockholm region. Residential property accounted for SEK 9.1 billion of this amount. After the sale of Lindangen in Malmo, in January, and the above-mentioned purchase, Stockholm will account for 54% of the total residential value, the Oresund Region for 22%, Gothenburg for 20% and Uppsala for 4%.
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