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2016-11-25

Magnolia Bostad AB: Magnolia Bostad enters framework agreement with Slättö

As of today, Magnolia Bostad enters a framework agreement with Slättö.
The partnership includes that Slättö acquires residential projects
from Magnolia Bostad with a value of at least SEK 5 billion, and may
gradually be increased to SEK 14 billion. The project portfolio is
concentrated to Stockholm, Uppsala and the Öresund region.

The total determined project portfolio consists of 13 projects that
include 450,000 habitable gross area, corresponding to about 7,000
apartments. While the cooperation is based primarily on the
construction of rental units, the parties have the shared intention
of developing approximately 25 percent of the apartments as
tenant-owned units. The agreement means no immediate revenue
recognition, as revenue recognition will occur as the projects are
realized.

Over half of the apartments are already in Magnolia Bostads existing
portfolio and the remaining are not yet acquired potential building
rights. This means that Magnolia Bostad now obtains a greater
certainty of sales of the existing portfolio and secures takers on
potential future projects.

Magnolia Bostad will ensure that all the projects are developed as
apartment buildings primarily intended for residential purposes.
Considering the above, the parties have entered the agreement to, as
far as possible, determine the financial, legal and constructional
conditions for the projects.

The framework agreement is valid until March 31, 2020, with
possibility of extension, and is conditional on Slättö obtaining
financing.

Pangea Property Partners has acted as financial advisor and Wistrand
Advokatbyrå has acted as legal advisor to Slättö. Wigge & Partners
acted as legal advisor to Magnolia Bostad.

- The agreement benefits our continued expansion and reinforces our
position as a leading urban developer. We already have a
well-functioning cooperation with Slättö and look forward to a deeper
relationship, says Fredrik Lidjan, CEO of Magnolia Bostad.

- Slättö intends to long-term own and manage the portfolio.
Residences within the portfolio are developed in accordance with
Slättös sustainability program and ambitious technical standards,
which among other things includes requirements for Green Building
Silver. The framework agreement with Magnolia Bostad fits well into
our strategy for continued development and growth, says Johan
Karlsson, CEO, Slättö.

For more information, please contact:

Fredrik Lidjan, CEO
+46 70 223 43 47, fredrik.lidjan@magnoliabostad.se

Johan Karlsson, CEO
+46 70 363 55 09, johan.karlsson@slattoforvaltning.se
(johan.karlsson@slattoforvaltning.se)

The information in this press release is such information that
Magnolia Bostad is required to reveal according to the European
Union's market abuse regulation, (EU) No 596/2014. The information
was published through the above mentioned contact person on November
25, 2016 at 17:10 pm.

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http://news.cision.com/magnolia-bostad-ab/r/magnolia-bostad-enters-frame...
http://mb.cision.com/Main/12686/2131279/595589.pdf

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