Annehem Fastigheter
Background
In February 2020 Peab’s Board proposed to the AGM an extra distribution of all the shares in a newly formed company holding Peab’s wholly owned, fully developed commercial properties. As a result of the spread of the coronavirus and its effects on external circumstances and financial markets Peab’s Board decided to withdraw the proposal to the Annual General Meeting. With the uncertain situation in the world this is not the right time to list the company. Peab continues to believe that a distribution of the properties is the solution that will over time provide shareholders with the greatest value. Therefore the operative work of building and structuring the real estate company is continuing as planned. The Board intends to summon an Extraordinary General Meeting to decide on distribution of the real estate company when the situation has stabilized and conditions are more favorable.
The distribution is conditional on the consent of Peab’s lenders and that Annehem Fastigheter receives financing on market terms. The level of equity and pledges in Annehem Fastigheter will be decided in consultation with the financing banks.
When Annehem Fastigheter is distributed the difference between market values and book values, including eliminated construction contract profit, will be taken up as income in Peab. In February 2020 this amounted to around SEK 1,200 million, which then primarily corresponded to the reduction of equity in the Group as a result of the distribution. In conjuncture with a future decision on distribution the effect on profit will be updated based on the current circumstances.
Further information to Peab’s shareholders regarding the proposal for distribution of Annehem Fastigheter, in the form of an information brochure, will be published on Peab’s website in connection with publishing the summons to attend the Extraordinary General Meeting.
Business concept, board and management
Annehem Fastigheter owns and manages high quality commercial, community and residential property with a clear environmental profile and good connections to the Nordic growth areas Stockholm, Skåne, Göteborg as well as Helsinki and Oslo. Annehem Fastigheter builds lasting relationships and value through management close to customers.
The board of Annehem Fastigheter consists of Göran Grosskopf, Pia Andersson, Jesper Göransson and Anders Hylén. Göran Grosskopf has been appointed chairman. Before it is listed further board members will be added to Annehem Fastigheter’s board. In addition, Jörgen Lundgren has been appointed CEO and Jan Egenäs will be CFO of Annehem Fastigheter. Jörgen Lundgren leaves his position as CEO of Solnaberg Property AB (publ). Jörgen has previously held positions such as President and CEO of Fastighetsaktiebolaget Norrporten and is, among other things, currently a board member of Aros Bostäder and vice chairman of Mäklarhuset.
Property portfolio
Per March 31, 2020 Annehem Fastigheter owns fully developed properties and participations with a market value of SEK 3,119 million. This includes 50 percent ownership in two joint venture companies – Nya Bara Utvecklings AB and Point Hyllie Holding AB. Annehem Fastigheter has also signed a contract with Peab to acquire further properties after they are completed. Two of the properties, located in Solna and Oslo, will be taken over during 2020 at a total market value of SEK 582 million, and two properties located in Solna and Helsingborg will be taken over in 2021 at a total market value of SEK 409 million.
The market values were determined in February 2020 before the outbreak of the corona pandemic and withdrawal of the distribution proposal. In conjuncture with the distribution of Annehem Fastigheter new market values of the properties will be determined. As long as Annehem Fastigheter remains on Peab’s books the properties will not be recognized at market value in Peab’s accounts. They will instead be recognized at book value.
| Wholly owned property | Location | Area in m2 | Degree rented, % |
| Business park | Ängelholm | 63,500 | 81 |
| Business park | Ljungbyhed | 75,300 | 55 |
| Office building | Solna | 12,400 | 100 |
| Office building | Helsinki | 9,300 | 85 |
| Office building | Helsinki | 7,600 | 80 |
| Retail and offices | Gothenburg | 6,300 | 97 |
| Office building | Malmö | 5,000 | 74 |
| Office building | Malmö | 1,000 | 100 |
| Partly owned shares | Location | Type of property | |
| Nya Bara Utvecklings AB, 50% | Bara, Malmö | Homes, community and commercial premises | |
| Point Hyllie Holding AB, 50% | Hyllie, Malmö | Hotel and office building | |
NET SALES AND PROFIT
The property portfolio in Annehem Fastigheter is being built up. Revenue and profit will successively increase in the coming years as more property is taken over.
Net sales for the first quarter 2020 amounted to SEK 40 million. Operating profit for the period was SEK 6 million and the operating margin was 15 percent. Depreciation and write-downs amounted to SEK -11 million.
Peab Center Stockholm
Solna