Serneke Group

Regulatory Filings • Dec 28, 2016

Serneke to build Campus Eskilstuna

Serneke has entered into an implementation agreement regarding the prestigious assignment of building a new campus for Mälardalen University in Eskilstuna. This was after Skanska appealed the allocation of the project, but was denied leave to appeal to the Administrative Court of Appeal.

The project is valued at about SEK 700 million.

An implementation agreement was signed today between Serneke and Mälardalen University. Together with the Municipality of Eskilstuna, the parties will create a vibrant and modern campus, where all operations will be gathered in a single location. The new university building will be on Hamngatan in the center of the town, where the sports hall and the aquatic center are currently located.

"For a long time, we have considered Eskilstuna one of the most strategically important municipalities in the Mälardalen region where we should establish the university. We chose the project with care – in consultation with our project development operations – seeking a volume and complexity suited to our project strategy. This contract demonstrates clearly how strong we are with regard to collaboration between the various parts of the Group," says Daniel Åstenius, President of Serneke Construction.

The decision regarding the allocation the project was appealed by Skanska, which had also submitted a bid for the assignment. However, the Administrative Court of Appeal supported the University's view and recently announced that it will not hear the case as Skanska had requested.

"It feels particularly satisfying to win because we meet the customer's requirements rather than offering the lowest price. This will support excellent collaboration and implementation. We have maintained a highly favorable and solutions-oriented dialogue with the University and are happy that the University is finally able to proceed with its project," says Daniel Åstenius.

At the same time, Serneke is acquiring all shares in property-owning company NYAB for a little more than SEK 6 million from the Municipality of Eskilstuna. Serneke Project Development will head the development of the project, with the aim of selling the property to a property company. A 20-year lease is signed for the property.

"In order to create a vibrant and modern campus where we can gather all operations under one roof, we are building a new campus in central Eskilstuna. Today's agreement with Serneke means that the construction process can now finally start", says Paul Pettersson, Principal of MDH.

Construction will commence once a building permit has been granted, and it is expected that this could occur in the first half of 2017. During the first quarter of 2017, detailed planning and certain preparatory efforts will commence, including the demolition of parts of the existing buildings. Campus Eskilstuna is scheduled for completion in 2019.

The order value of the project, estimated at about SEK 700 million, will be distributed between the Construction and Project Development business areas and will be included in the order bookings for the first quarter of 2017.

For additional information, please contact:

Daniel Åstenius, President, Serneke Construction Tel: +46 70 813 79 82 daniel.astenius@serneke.se

Patrik Lindström, President Serneke Project Development Tel: +46 70 431 51 91 patrik.lindstrom@serneke.se

Johan Live, Press Officer Tel: +46768 681137 johan.live@serneke.se

This information is such that Serneke is required to disclose under the EU Market Abuse Regulation. The information was submitted under the auspices of the above contact person for publication on December 28 at 13.15 CET.

Serneke is a rapidly growing corporate group active in construction, civil engineering, projectdevelopment and property management. The Group was founded in 2002 and today has annual income of more than SEK 3 billion and more than 800 employees. Through novel thinking, the Company drives development and create more effective and more innovative solutions for responsible construction. The Company builds and develops housing, commercial buildings, industrial facilities, public buildings, roads and civil engineering projects, and other infrastructure. The Company's customers are public and commercial clients and operations are focused on the three metropolitan regions in Sweden, Gothenburg (Region West), Stockholm (Region East) and Malmö (Region South). Serneke's headquarters are located in Gothenburg and the Company also has offices in Stockholm, Malmö, Helsingborg, Borås, Halmstad, Strömstad, Trollhättan, Varberg and Alingsås. The Company's Series B shares (SRNKE) have been listed on the Nasdaq Stockholm exchange since November 2016.

Further information about Serneke Group AB is available at www.serneke.group