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, earlier included in business area Project Development and the entity Property Development. 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 it was 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 has continued 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’s consolidated accounts. 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 will own and manage high quality commercial, community and residential property with a clear environmental profile and good connections to the Nordic growth areas Stockholm, Skåne, Gothenburg 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 as 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.

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.

April – June 2020

Net sales for the second quarter 2020 amounted to SEK 48 million. Operating profit amounted to SEK 6 million and operating margin was 12.5 percent. Negative effects due to the corona pandemic have affected hotel business by SEK -5 million. Depreciation and write-downs during the quarter were SEK -13 million.

January – June 2020

Net sales for the period January-June 2020 amounted to SEK 88 million. Operating profit amounted to SEK 12 million and operating margin was 13.6 percent. Negative effects due to the corona pandemic have affected hotel business by SEK -8 million. Depreciation and write-​downs for the period were SEK -24 million.