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. 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 summoned an Extra General Meeting (EGM) November 12, 2020 and Peab’s shareholders adopted its proposal to distribute Annehem Fastigheter.

Distribution

The distribution ratio was 1:5 which meant that one share in Peab entitled to one share right of the same sort in Annehem Fastigheter, and five share rights entitled to one share of the same sort in Annehem Fastigheter. Distribution was carried out in December 2020 and the first day of trading in Annehem Fastigheters’ B shares on Nasdaq Stockholm was December 11, 2020. The first trading price was SEK 35 per share.

The distribution corresponds to equity of around SEK 2 billion. The level of equity and borrowing in Annehem Fastigheter has been determined based on the current property portfolio and taking into consideration future growth.

Distribution effects in the Peab Group

At the distribution of Annehem Fastigheter the difference between fair value and book values was recognized in the Group in Property Development at SEK 896 million. In addition, previously eliminated construction contract profit of SEK 56 million was reversed under Eliminations. All in all, operating profit in the Peab Group has been affected positively by SEK 952 million.

At the time of the distribution the balance sheet total in Annehem Fastigheter in the Peab Group amounted to SEK 2,334 million. Additional IFRS 16, Leases for office rent increased by SEK 564 million and therefore the net effect on Peab’s balance sheet total amounted to SEK -1,770 million at the time of the distribution, of which the effect on equity was SEK -1,054 million. In addition, distribution costs of SEK -22 million after tax have charged equity. For more information see note 6. For information on the effects in Peab AB see Parent company in summary.

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.

October – November, 2020

Net sales for October-November, 2020 was SEK 36 million. Operating profit amounted to SEK 13 million and operating margin was 36.1 percent. Listing and separation costs of SEK 2 million were included in operating profit. Depreciation and write-downs during the quarter were SEK -10 million.

January – November, 2020

Net sales for January-November 2020 amounted to SEK 171 million. Operating profit amounted to SEK 30 million and operating margin was 17.5 percent. Listing and separation costs of SEK 14 million were included in operating profit. Depreciation and write-​downs for the period were SEK -46 million.

Property portfolio

Annehem Fastigheter owns assets in the form of fully developed properties and on September 30, 2020 the market value of the properties was approximately SEK 3,300 million. During the second quarter it was decided not to include Peab’s partially owned company Nya Bara Utvecklings AB in Annehem Fastigheter. During the third quarter it was decided that Peab’s 50 percent ownership in the joint venture ​company, Point Hyllie Holding AB will not be owned by Annehem Fastigheter but remain in Peab.

During the second quarter Annehem Fastigheter acquired a property containing offices and parking space in Solna for a market value of SEK 290 million from Peab and during the fourth quarter a property in Oslo with a sales value of SEK 278 million. Annehem Fastigheter has also signed a contract in October 2020 with Peab to acquire further properties after they are completed. Two properties located in Solna and Helsingborg will be transferred in 2021 for a total sales value of SEK 406 million and two housing properties with a total sales value of SEK 385 million will be turned over in 2022 and 2024 respectively.

 

Wholly owned property Location Area in m2 Degree rented, %
Business park Ängelholm 51,500 93
Business park Ljungbyhed 77,200 77
Office building Solna 12,400 100
Office building and parking Solna 13,500 100
Office building Helsinki 9,300 100
Office building Helsinki 7,600 100
Retail and offices Gothenburg 6,400 99
Office building Malmö 4,900 100
Office building Malmö 1,000 100
Retail Oslo 3,600 100