Samhällsbyggnadsbolaget i Norden AB (publ) (“SBB”, “Samhällsbyggnadsbolaget” or “the Company”) announces that the Company, through its subsidiary SBB i Norden AB (publ), sells parts of its building rights portfolio to an agreed property value of SEK 712 million. The transaction is expected to have a positive effect on the Company’s earnings by approximately SEK 300 million for 2017 and, as a consequence of the sales, the Board has decided to cancel the preparations for a new issue of ordinary shares announced to the market on May 15, 2017.

Samhällsbyggnadsbolaget sells building rights comprising of 202,000 square meters of gross area (BTA) with ongoing zoning plan process at an agreed property value of SEK 712 million, of which SEK 184 million refers to joint ventures in which Samhällsbyggnadsbolaget will own 50 percent. The sale attracted a lot of interest among building and housing development companies, and is carried out in 6 transactions regarding building rights in Stockholm and Nyköping. In total, the impact on earnings for 2017 is estimated to approximately SEK 300 million. The down payment amounts to SEK 79 million.

The immediate cash flow effect from the down payments is estimated at SEK 60 million. The remaining considerations to be paid are estimated to additionally generate around SEK 460 million in cash flow over the next 12-18 months.

“Already in our first year, we sold building rights for SEK 226 million, and closing the first half of 2017 with sales corresponding to SEK 712 million gives an indication of how attractive our property portfolio is,” says Krister Karlsson, vice President of Samhällsbyggnadsbolaget.

The transaction is part of the Company’s strategy to create value by identifying potential for, and implementing, property development in communications-close locations. The target remains to deliver at least SEK 250-400 million annually in profits from property development on top of the profit derived from property management.

“Our journey has just begun and we will always focus on cash flow, profitability and value creation which this transaction is proof of. We are in a consolidation phase and we expect to continue to carry out transactions that showcase the company’s values,” says Ilija Batljan, founder and CEO of Samhällsbyggnadsbolaget.

The Company estimates that the remaining portfolio of building rights and future building rights after this transaction comprises a total of approximately 430,000 square meters.

As a consequence of the transaction, the company’s Board of Directors has decided to cancel the preparations for a new issue of ordinary shares announced to the market on May 15, 2017.

For further information, please contact:

Ilija Batljan, CEO and founder of Samhällsbyggnadsbolaget i Norden AB, +46 70 518 39 67, [email protected]