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.

Based on market assessments as well as the development presented in the second quarter report Peab’s Board decided in August 2020 to propose a new date for the distribution of Annehem Fastigheter. The Board has thereafter summoned to an Extra General Meeting on November 12, 2020 with the intention that distribution and listing will take place in December.

Annehem Fastigheter has received financing on market terms and the distribution has been approved by Peab’s loan financiers. The distribution is equal to around two billion SEK in equity. The level of equity and borrowing in Annehem Fastigheter has been determined based on the current property portfolio and taking into consideration future growth.

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. This preliminarily amounts to SEK 850 million.

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 before the Extra General Meeting. The information brochure will, among other things, contain a description of Annehem Fastigheter’s final structure, the transaction and financial effects for Peab.

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, Anders Hylén, Lars Ljungälv and Karin Ebbinghaus. Göran Grosskopf has been appointed chairman. In addition, Jörgen Lundgren has been appointed CEO, Jan Egenäs as CFO and Adela Colakovic as Group Accounting Manager for Annehem Fastigheter. Jörgen Lundgren leaves his position as CEO of Solnaberg Property AB (publ). Jörgen Lundgren 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.

July – September 2020

Net sales for the third quarter 2020 amounted to SEK 47 million. Operating profit amounted to SEK 5 million and operating margin was 10.6 percent. Listing and separation costs of SEK 12 million were included in operating profit. Depreciation and write-downs during the quarter were SEK -12 million.

January – September 2020

Net sales for the period January-September 2020 amounted to SEK 135 million. Operating profit amounted to SEK 17 million and operating margin was 12.6 percent. Listing and separation costs of SEK 12 million were included in operating profit. Depreciation and write-​downs for the period were SEK -36 million.