Drott sells 27 Gothenburg properties for SEK 1,420 million


STOCKHOLM, Sweden, Oct. 23, 2003 (PRIMEZONE) -- Drott (Other OTC:DOTBF):

The sale is an element in the new strategic direction for Drott's commercial real estate operations, where the focus is on properties in Stockholm.

The portfolio comprises 27 properties -- three of which are leaseholds -- with 118,400 square meters of rentable space (including 3,400 sq. m. of residential space).

The occupancy rate is 90 percent. Current leases generate annual rent of SEK 131 million and an operating surplus of SEK 84 million. The sale is being executed through a special purpose company, with the closing and payment of the full proceeds scheduled for December 30, 2003. The buyer is Lennart Wallenstam Byggnads AB (publ), a publicly listed real estate company based in Gothenburg. Effects for Drott

The sales price amounts to SEK 1,420 million. An independent appraisal of the market value of Drott's property portfolio was made as per December 31, 2002. The market value of the properties now being sold was appraised at the time at SEK 1,473 million.

For accounting purposes, the sale results in a gain of SEK 165 million, which will be reported in the fourth quarter 2003. A provision of approximately SEK 20 million for estimated future costs associated with the sale is accounted for in the gain.

The fiscal residual value in the portfolio is approximately SEK 425 million less than the sales price. The effect on liquidity based on the difference is estimated at SEK 25 million. Outstanding tax loss carryforwards are not affected by the sale. The sale initially reduces the Group's annual cash flow by approximately SEK 40 million.

The sale requires negotiations pursuant to the provisions of the Co- determination in the Workplace Act, which will begin immediately. Catella Corporate Finance has served as Drott's adviser in the sales process.


 Schedule of real estate
 Area      Properties    Address            Rentable     Of which
           sold                              space      residentia
                                             excl.        l space
                                            garages
 Inner     Gullbergsvas  Hamntorget 6         5,981          0
 city      s 1:12
 Inner     Inom          Sodra Hamng. 29,     4,456          0
 city      Vallgraven    Drottningg. 30
           15:3
 Inner     Inom          Vastra Hamngatan     2,802          0
 city      Vallgraven    8, etc.
           17:13
 Inner     Inom          Sodra Larmgatan      3,110          0
 city      Vallgraven    20, etc.
           23:11
 Inner     Inom          Kungsportsplatsen    5,521          0
 city      Vallgraven    1, etc.
           25:1+4
 Inner     Inom          Gronsakstorget 3,    4,194          0
 city      Vallgraven    etc.
           26:8
 Inner     Inom          Kungstorget 1       14,382      3 252
 city      Vallgraven    etc.
           26:9
 Inner     Inom          Lilla Torget 1       3,197          0
 city      Vallgraven
           53:14
 Inner     Inom          Lilla Torget 2,      3,051          0
 city      Vallgraven    etc.
           53:15
 Inner     Nordstaden    Kronhusgatan 16      3,322        136
 city      24:11
 Inner     Stampen 6:17  Odinsgatan 13,       7,480          0
 city                    etc.
 Arendal   Arendal 5:1   Karrlyckevagen 24    2,398          0
 Biskopsga Biskopsgarde  Ruskvadersgatan      2,305          0
 rden      n 45:1        22, etc.
 Hogsbo    Hogsbo 5:7    Olof Asklundsgata    3,213          0
                         25
 Kobbegard Kobbegarden   Datavagen 18         1,615          0
 en        6:169
 Kobbegard Kobbegarden   Datavagen 29         1,290          0
 en        6:55
 Kobbegard Kobbegarden   Ekonomivagen 3-5     4,251          0
 en        6:731
 Karra     Karra 72:33   Tagenevagen 34       6,165          0
 Karra     Karra 75:2    Transportgatan 37    7,899          0
 Karra     Karra 75:4    Transportgatan 39    8,000          0
 Karra     Karra 90:1    Orrekulla           10,740          0
                         Industrigata 61
 Harryda   Solsten       Foretagsvagen 2      2,885          0
           1:110
 Harryda   Solsten       Molnlycke                0          0
           1:126         foretagspark
 Harryda   Solsten       Konstruktionsvage    4,953          0
           1:132         n 14
 Tynnered  Tynnered      Femvagsskalet 4      2,500          0
           1:15
 Onnered   Onnered       Onnereds Brygga 1-   2,711          0
           762:369       17
                                            118,422      3,388

Drott is being divided into two focused, publicly listed companies. Shareholders at the Annual General Meeting in 2004 will vote on the Board of Directors' proposal to distribute Bostadsaktiebolaget Drott, a streamlined residential real estate company active in around ten Swedishgrowth regions. As proposed, today's Drott would at the same time changeits name to Fabege AB, an active, streamlined commercial real estate company focused on Stockholm.

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