Fabege

M&A Activity • Mar 9, 2018

PRESS RELEASE 9 March 2018, 13:37 CET

Fabege selling Uarda 6, Arenastaden

Fabege has signed a contract to sell the property Uarda 6 in Arenastaden to the open-ended real estate fund UniImmo: Europa by Union Investment. The Hamburg-based real estate investment manager has previously purchased two other properties in Arenastaden from Fabege. Subsequent to the sale, Fabege will administrate the property on behalf of Union Investment, as well as retaining customer relations responsibility and continuing to work with development in Arenastaden. The sale confirms once again how attractive the area has become to institutional investors.

The property transaction is being completed as a corporate sale with an underlying property value of SEK 1.2bn before deductions for latent tax. The transaction will generate a profit of SEK 93m before taxes and SEK 176m after taxes. In accordance with the new reporting regulations, the profit will be recognised as an unrealised change in value in the first quarter. It is expected that the transfer will take place on 31 May 2018.

The property is located in the centre of Arenastaden, with entrances towards both Evenemangsgatan and Dalvägen. The building was completed in 2017, with many tenants – including heavyweight companies such as Siemens, H&M and Ambea – moving in over the course of the late summer and autumn. The total surface area amounts to almost 18,000 sqm, of which around 17,000 sqm are offices. The property has been certified to Miljöbyggnad Gold standard.

• "Fabege considers it important to continue operating as a strong, long-term owner and administrator in Arenastaden. The latest transaction aligns with the Fabege business model which aims to boost the potential of the portfolio by selling modern, fully refined properties so as to free up capital for value-generating project investments. In Arenastaden alone, Fabege owns almost 200,000 sqm of commercial development rights, which are set to be developed over the coming years. Through this latest sale, we are creating space to continue completing value-generating investments in our chosen areas. The property is a good match for the investment market's demand for modern offices in attractive locations, fully leased and with long-term contracts. In the same way as previously, Fabege will be responsible for operation and administration, and I'm delighted with the working relationship built on trust we enjoy with Union Investment," comments Klaus Hansen Vikström, Vice President and Director of Business Development at Fabege.

Fabege AB (publ)

This information is of the type that Fabege AB is required to disclose under EU Market Abuse Regulation No. 596/2014. This information was released for publication at 13:37 CET on 9 March 2018 through the agency of the afore-mentioned contact.

For additional information, please contact:

Christian Hermelin, CEO, Fabege, tel. +46 8 555 148 25, +46 733 87 18 25 Åsa Bergström, Vice President and CFO, tel. +46 8 555 148 29, +46 706 66 13 80 Klaus Hansen Vikström, Vice President and Director of Business Development, tel. +46 8 555 148 74, +46 70 239 34 81

Fabege is a property company that focuses on urban development and commercial properties. We work with strategic partners to develop attractive and sustainable city districts with modern offices, residential units and a wide range of services. We adopt a long-term perspective and approach to ownership, and we are passionate about creating the right conditions for everyone who lives, works and spends time in our areas. We are present in a select number of fast-growing submarkets in the Stockholm area. The Fabege share is listed on Nasdaq Stockholm, in the Large Cap segment. For additional information, visit www.fabege.se