Annual Report 1999

C ll A l R 1999 Contents

1 Castellum 1999 2 Chief Executive Officer’s Comments

Directors’ Report 4 Castellum’s Bid for Diligentia 6 Operations 10 Castellum’s Real Estate Portfolio 13 Greater Gothenburg 17 Öresund Region 21 Greater Stockholm 25 Western Småland 28 Mälardalen 31 Development Projects and Building Permissions 36 Valuation Model 38 Environment 41 Financial Review 50 Annual and Quarterly Summary 51 Key Ratios

52 Income Statement 53 Balance Sheet office premises. 54 Cash Flow Statement 55 Notes to the Financial Statements and Accounting Principles 60 Proposed Appropriation of Profits 61 Auditors’ Report

62 Board of Directors, Senior Executives and Auditors 64 The Castellum Share 66 Summary of Real Estate Portfolio 68 Real Estate Schedule 83 Properties Sold during 1999 84 Definitions Addresses Annual General Meeting • The Annual General Meeting of Castellum AB previously planned for 22 March 2000 will be postponed until a date to be announced later, as a result of the company’s public offer to shareholders of Diligentia. • An extraordinary general meeting will be held in March 2000, on account of the bid. Financial Reporting • Interim reports (the dates specified may be changed on account of the bid): Interim Report to 31 March 2000 19 April 2000 Interim Report to 30 June 2000 17 August 2000 Interim Report to 30 September 2000 19 October 2000 Year-end Report 2000 30 January 2001

Further information can be obtained from the company’s Chief Financial Officer, Håkan Hellström, phone +46 31-60 74 00, and from the Castellum website, www.castellum.se into attractive will be converted which during 1999 on the Kavalleristen 9 site in Helsingborg, acquired An unlet building was Castellum Annual Report 1999

Castellum is one of the major listed real estate companies in Sweden operating solely in this sector. The real estate portfolio, comprising both commercial and residential properties, has a book value of approximately SEK 10 billion, and is concentrated in Greater Gothenburg, the Öresund Region, Greater Stockholm, western Småland and Mälardalen. The portfolio is owned and managed by six locally based subsidiaries with their own identities.

• Net income after tax for 1999 was SEK 409 million, compared with SEK 320 million in 1998.

• Net income corresponds to earnings per share of SEK 8.18, compared with SEK 6.40 in the previous year.

• Income from property management has increased by 29 % compared with the previous year.

• Acquisitions and investments of SEK 1 993 million were made during the year and property sales amounted to SEK 425 million with a capital gain of SEK 109 million.

• The Board of Directors proposes an increased dividend of SEK 4.50 per share.

• The Board of Castellum decided on 18 January 2000 to make a bid for all shares of Diligentia AB in order to promote a merger between Castellum and Diligentia.

Key ratios 1999 1998 1997

Rental income, SEKm 1 256 1 200 1 131 Income from property management, SEKm 300 232 186 Net income for the year, SEKm 409 320 250 Earnings per share, SEK 8.18 6.40 5.00 Book value of real estate portfolio, SEKm 10 242 8 695 8 586 Equity/assets ratio, % 38 41 40 Dividend (1999 = proposed), SEK 4.50 3.50 2.75 Average no. of employees 182 186 201

In the event of conflict in interpretation or differences between this report and the Swedish version, the latter will have priority. 1999 Chief Executive Officer’s Comments EPORT R NNUAL A ASTELLUM C

Once again, we can summarise a successful In addition to the investments made in 1999, year for Castellum. The income from property we have made decisions on further new con- management of the past year was 29 per struction and refurbishment at a projected cost cent better than 1998. This is now the of about SEK 500 million. second year running that we can report an Our development project portfolio con- improvement of at least 25 per cent. tains more than 700 000 sq.m. of land with Successful leasing activity, high manage- building permission, at various stages of ment efficiency and good contributions to planning. The planning work has become earnings from our acquisitions and invest- more intensive during the year, and there ments, together with an improved rental are sites in Greater Stockholm, Gothenburg, Malmö and market, are the main reasons for the positive growth. Lund where planning is reaching completion. The demand for commercial premises has increased in Net leasing for the year increased considerably to 78 000 all the sub-markets where we are active, but to different sq.m. and the occupancy rate in commercial portfolio in- extents. Rentals have increased generally and new develop- creased by more than two percentage points, although we ment potential has been acquired through investments and purchased some properties during the year with high vacancy acquisitions. Several of these investments have not yet devel- rates. Rent increases are of course greatest in central and oped their full impact on the result, however, and can thus attractive locations, but the increasing lack of suitable pre- be expected to give an increasing contribution to earnings in mises tends to promote rent increases in other areas as well. future. Among other things, we are pleased to note that the market situation now permits an increasing number of new We sold properties worth SEK 425 million during 1999, construction and refurbishment projects, which will contri- at a capital gain of SEK 109 million. Our goal is to be able bute to a continued rise in earnings in the immediate future. to report capital gains of at least SEK 80–100 million per It is my conviction that development of new projects is one annum from property sales, and we have thus met our goal of our most important means to strengthen the company. with a good margin. The majority of sales were of residenti- Our local presence and our subsidiaries’ strong customer al properties, where we disposed of our residential holdings contacts also permit us to plan new projects early on in ways in Borås and Mölndal etc. at the beginning of the year. In which correspond with current customer needs. addition, we sold a number of fully developed residential properties on Hisingen in Gothenburg and some smaller During 1999, we have spent a total of SEK 2 billion on properties in Värnamo. investments and acquisitions, which is all of SEK 1.3 billion more than in 1998. A large number of new construction pro- Thanks to the positive growth in both the company’s cur- jects were completed in the latter part of the year, with good rent cash flow and property prices, the Board has decided profitability. All of these acquisitions and investments increase to adjust the goal for the company’s visible long-term equity/ the profitability of the company, and will fully impact profits assets ratio in the existing portfolio from 35% to at least 30%. during the year 2000. All acquisitions have also been made Environmental work in the Group has continued to be within the framework of the current organisation, and thus do integrated into the company’s ordinary management and not cause any increase in the company’s management costs. business development. This is a time-consuming task which

2 1999 NNUAL REPORT A ASTELLUM C does not produce any immediate or dramatic effects, it is the For a long time, we have been investigating the opportuni- long-term effect which is important. For this reason, we ties for a major structural deal, which would create a larger have a sustainable and focused attitude to environmental and even stronger Swedish real estate company. Our analy- work, based on a conviction that if and when we promote ses showed that Diligentia is the company best suited to co- a better environment and better use of resources, we also ordination with Castellum. Our real estate portfolios comple- create the conditions for good profits and asset growth in ment each other and we have similar views on property the company. Confirmation that we are well on the way, in management. After a long series of confidential discussions, environmental work, was when Castellum was ranked in our Board decided to make a bid for the entire share capital 1999 as one of the 50 most environmentally progressive of Diligentia AB. This merger would give our company a listed companies by an environmental organisation, Det considerably stronger market position and increased oppor- Naturliga Steget. tunities for continued growth.

Growth in Sweden is positive, and the latest forecasts As I announced back in October, I will leave the post of indicate continued growth during the coming year. Domestic Chief Executive Officer on the occasion of the annual gene- demand is strong and there are reasons to be optimistic ral meeting on 22 March. At that time, I will be 55 years about Castellum’s opportunities of continuing to grow in a old, and it will be 20 years since I was appointed to my first positive manner during the first year of the new millennium. post as Chief Executive Officer. For this reason, I have decid- Our local subsidiaries are strengthening their positions in ed not hold any executive appointments. It is very gratifying their sub-markets, and are developing successively wider to be able to hand over a stable, well-functioning company, customer contacts. We have a well-adjusted organisation, which also has the potential for equally good growth in future. whose capacity matches both the current favourable econo- Lars-Erik Jansson, who will succeed me, has participated in mic situation and Castellum’s development project portfolio. building up the company and has been a major contributor I am confident about the coming year, both because of the to the positive growth of the company. positive market situation, and because of our large investments, which will contribute to continued earnings growth in the coming years. Gothenburg, 22 February 2000 But it is just as important to have competent and motivat- ed personnel, with a good knowledge of their markets and their customers’ needs. At this time, we can note once again that our decentralised and well-trimmed organisation gives Thomas Alexandersson us a strong competitive advantage. Chief Executive Officer During the last year, we have noted that the company’s strong growth in earnings, cash flow and dividend has not led to a corresponding rise in our share price. I am con- vinced that the current low valuation of real estate shares is a transient phenomenon, however, and that the company will continue to enjoy strong growth, which will eventually lead to a stronger share price.

3 D IRECTORS’ REPORT

1999 Castellum’s Bid for Diligentia The section under this heading is the only place where the merger with Diligentia and its effects are described.All other sections of the annual report refer to the Castellum Group in its current configuration. NNUAL REPORT

A The Board of Castellum decided on 18 January 2000 to Reasons for the offer make a bid for the entire share capital of Diligentia AB in The Boards of both Castellum and Diligentia consider that order to promote a merger between Castellum and Diligentia. merger is beneficial for both commercial reasons and for the A merger would create a market-leading real estate company ASTELLUM shareholders. Merger would create a market leading real C focused on Greater Stockholm, Greater Gothenburg and the estate company owning real estate with a book value of Öresund Region. SEK 20 billion, and annual rental income of SEK 2.5 billion. The merger would give the companies more financial The offer muscle and increase the chanceopportunities of for future The offer from Castellum can be summarised as follows. growth. It would also have positive effects on marketing and Diligentia shareholders are offered one newly issued leasing operations. A higher market capitalisation creates the Castellum share in exchange for each share. Diligentia share- conditions for greater liquidity for the share, which would holders with less than 100 shares receive an alternative offer combine to have a positive effect on the value of the share. of SEK 79 per share for their entire holding. The Board of Castellum will propose a dividend of SEK The new group 4.50 per share for the financial year 1999. This dividend Goals and strategies will also be payable on the Castellum shares issued in Castellum’s current strategies and goals will essentially be exchange for Diligentia shares. transferred to the new Group, and will be enhanced by the The Castellum offer is conditional on the following: opportunities offered by the merger. This applies both on the • that the shareholders give the necessary approval to the general level and to the development of our real estate port- new issue at the Castellum extraordinary general meeting, folio. • that Castellum acquires more than 90% of the number of Real estate portfolio shares and votes in Diligentia. Castellum reserves the The real estate portfolio of the new real estate company will right to pursue the offer even if the take-up rate is lower, mainly be concentrated to the areas where growth is expect- after consultation with Diligentia, ed to be good in future. After the merger, more than 85% • that until the termination of the application period, or its of the value of the holdings will be located in Greater extension, no action is taken, no decision is made, and no Stockholm, Greater Gothenburg and the Öresund Region. regulation or legislation has been enacted in Sweden or Diligentia’s investments in Copenhagen, are regarded as other countries, or other circumstance has occurred outsi- positive and the properties will continue to be included in the de the control of Castellum, which in Castellum’s judge- Öresund Region. Diligentia’s other overseas holdings will be ment could contribute to negating the merger, makes it disposed of. impossible or entails a materially negative effect on The combination of office premises in attractive locations, Diligentia’s operations or value, high yielding industrial and warehouse properties and resi- • that no dividend is paid by Diligentia until payment has dential properties in attractive locations means that the new been made for this offer. Group will be well positioned for both good yields and future asset growth. The Board of Diligentia has recommended their shareholders to accept the offer.

Real estate portfolio by geographical region (Book value 31 December 1999)

Castellum Diligentia Pro-forma after the merger Greater Öresund Öresund Greater Greater Öresund Gothenburg Region 24 % Region 18 % Gothenburg Gothenburg Region 21 % 36 % 29 % 32 % Greater Stock- holm 17 % Western Småland 6 % Greater Western Greater Stock- Stockholm 36 % Småland Mälardalen 11 % holm 53 % Mälardalen 5 % 12 %

4 D IRECTORS’ REPORT 1999

The proportion of residential properties in the real estate The company will have a stable dividend policy with a portfolio will gradually fall, both due to sales of residential high proportion of profits distributed. The goal is that at properties and through acquisitions of commercial properties. least 50 per cent of the taxed profits should be distributed as dividends. Consideration must be given to the company’s NNUAL REPORT

Financial investment plans, needs for consolidation, liquidity and A Castellum and Diligentia are of the opinion that the synergy general situation, however. effects before tax will initially amount to SEK 80 million per annum, rising to SEK 100 million per annum within Organisation ASTELLUM a three-year period. The majority of the savings will come Management will be carried on by subsidiaries, as previously, C from the central administration, but synergy effects will also with their own identities and local presence in their markets, arise in property, rental leasing, property administration and and mainly by their own personnel. through increased rental income. Restructuring and transac- At Castellum’s annual general meeting in the spring of tion costs are expected to amount to SEK 175 million. The 2000, Anders Rydin and Sven Nyman, who are members of goal is to be able to report capital gains from property sales Diligentia’s Board at present, will be proposed as new mem- of SEK 160 – 200 million per year. bers of Castellum’s Board. The Sixth and Seventh AP-funds, The equity/assets ratio of the new Group should be such who hold a total of 24 % of Castellum’s shares will propose as to permit a focus on creating shareholder value. The goal that Castellum’s present Chief Executive Officer, Thomas is therefore that the visible equity/assets ratio should be in Alexandersson, should be appointed as Chairman of the the 25–30% range in the long term, given the background of Board. Anders Rydin will be proposed as Deputy Chairman. the composition and geography of the real estate portfolio. The Board has appointed Lars-Erik Jansson as the new For this reason, the Castellum Board will propose buy-back Chief Executive Officer. Björn Tigler becomes Deputy and/or redemption of Castellum shares at the annual general Chief Executive Officer and Håkan Hellström becomes meeting in 2000, allocating a total amount of SEK 2.5 billi- Chief Financial Officer. Mats Cederholm will assist Lars- on, to be carried out before the annual general meeting in Erik Jansson with integration tasks during 2000. 2001. Further information about the future organisation of the After buy-back/redemption, the pro-forma equity/assets company will be presented once the bid conditions have ratio should be 29 per cent. been met.

Income statement 1999* SEKm Castellum Diligentia Pro forma Balance sheet 31 December 1999* Rental income 1 256 1 253 2 509 SEKm Castellum Diligentia Pro forma Operation, maintenance etc. –495 –488 –983 Real estate 10 242 11 669 21 849 Net operating income 761 765 1 526 Other fixed assets 61 390 451 Deferred tax 401 –210 338 Depreciation –88 –84 –172 Current receivables 115 475 590 Central administration –55 –70 –125 Cash/bank 96 137 233 Net financial items –271 –321 –742 Total assets 10 915 12 461 23 461 Minority interests — –20 –20 Income from property Shareholders equity 4 370 4 962 6 742 management 346 270 466 Interest-bearing liabilities 5 670 6 711 14 881 Other liabilities 875 788 1 838 Property sales 109 131 240 Total equity and liabilities 10 915 12 461 23 461 Tax –127 –112 –197 Net income for the year 328 289 509 * Pro forma after buy-back/redemption

* Pro forma after buy-back/redemption For further information about the bid and the new Group, please refer to the separate prospectus and information brochure.

Real estate portfolio by property type (Book value 31 December 1999)

Castellum Diligentia Pro forma after the merger

Warehouse/- Residential 26 % Residential Industrial 29 % 21 % Office/ Office/ Land 0 % Office/ Retail 50 % Development Retail 69 % Retail 60 % Warehouse/ projects/Land 5 % Industrial 16 % Warehouse/ Residential 16 % Industrial 5 % Development projects/Land 3 %

5 D IRECTORS’ REPORT

1999 Operations NNUAL REPORT A

ASTELLUM Castellum’s business concept C Castellum’s business concept is to develop and add value to its real estate portfolio, focusing on the best possible earnings and asset growth, by offering customised commercial and residential properties, through its local presence on selected markets in Sweden.

Overall objectives and strategies The efficiency of the company shall be measured by operating income, i.e. earnings excluding profits from Castellum’s overall objective is to produce a competitive property sales and tax. The earnings target shall be set by return for its shareholders. The focus on cash flow and earn- the Board each year and shall refer to the next three-year ings growth provides the preconditions for good, long-term period. The basis for setting the earnings target shall be the asset growth in the company, while shareholders can be company’s business plans. offered a dividend, which is competitive with comparable investment options. Castellum’s overall strategy for asset Castellum’s strategy is to develop operations in towns and growth is based on: markets with expected good development potential. The • The acquisition and new construction of properties with total real estate portfolio within each management region development potential. shall be sufficiently large to facilitate cost-effective management, and to provide opportunities for a prominent market • Improved net operating income through adding value to position. properties, increased rental income and cost-effective management. Equity/assets ratio planning shall be such that funds are • The sale of properties to which no further value can be always available to acquire existing properties, make invest- added by the company’s management. ments in own properties and participate in new construction. The long-term goal is that the visible equity/assets ratio in Castellum’s income shall therefore consist of both a profit Castellum’s current portfolio should not be less than 30 per on operating activities, and capital gains from property sales cent. which makes the added values visible. The goal is to be able to report annually capital gains from property sales in the region Castellum shall have a stable dividend policy and a high of SEK 80–100 million. dividend. The objective is that, in the long term, Castellum shall distribute at least 50 per cent of the net income for the financial year. However, Castellum’s investment plans, consolidation needs, liquidity and financial position in general Development of income shall be taken into account. SEKm SEK/share 450 9.00 Dividend 400 8.00 SEK 5,00 350 7.00 4,50 300 6.00 4.50 4,00 250 5.00 3,50 3.50 200 4.00 3,00 2,50 2.75 150 3.00 2,00 100 2.00 1,50 50 1.00 1,00

0 0 0,50 1997 1998 1999 0 Income from Income from 1997 1998 1999 property management property sales (Proposed)

6 D IRECTORS’ REPORT 1999 NNUAL REPORT A

The company shall endeavour to ensure that the share has rates, increased rents and improved cash flow. New develop- ASTELLUM a stable and rising price, and high liquidity. The company’s ment potential shall be contributed through acquisition of C actions shall always be based on a long-term perspective, selected properties, which can be developed by the organisa- however. tion and which comply with the company’s earnings requirements and which are logical complements to the existing Castellum’s objective is to continuously provide frequent, portfolio. open, and true and fair reporting on the company’s real estate portfolio, results and financial position to shareholders, Development of new construction activities shall be the capital market and the media, but without disclosing monitored carefully. Where new construction offers a com- individual business relations. petitive and functional alternative, Castellum will participate in new construction of commercial properties at the rate per- Strategy for the real estate portfolio mitted by demand and investment funds. The company has a number of sites in attractive locations, with building per- Castellum’s real estate portfolio shall consist solely of mission, and acquisition of further sites in attractive loca- Swedish properties in selected geographical regions with tions, with building permission, forms part of the company’s good development potential, where sufficient volume can be strategy. Castellum will not carry out any major speculative achieved for rational management and a high presence. The projects, but in the same way that properties with vacancies Group’s current portfolio fulfils this requirement, and no is acquired, development projects with manageable vacanci- change in the priority market regions is therefore on the es can be started. agenda. A certain degree of continued concentration of the portfolio in each region should be aimed at, given the back- All investments, irrespective of whether they are actions ground of continued reconciliation of future business oppor- in existing properties, acquisitions or new construction, shall tunities for the towns where Castellum has a presence. show a positive return and cash flow within 1–2 years, after full interest charge and depreciation, and shall have a poten- The real estate portfolio shall mainly consist of commer- tial for future asset growth. cial properties with office, retail, warehouse and industrial premises, concentrated in selected towns and locations. Castellum’s strategy also includes selling properties at the Residential properties shall be owned in central, attractive right price, when the company’s organisation can no longer and socially stable locations. contribute added value, or when the calculated future value determined on an earnings basis can be obtained by selling. The current distribution of Castellum’s real estate portfo- In this way, the asset growth in the real estate portfolio can lio, geographically and by type, shall be carefully balanced be made visible. with consideration given to required yields, asset growth and risk exposure. The proportion of commercial properties in the Castellum has made a strategic choice to manage proper- portfolio will gradually increase, as a consequence of acqui- ties in a small-scale organisation. Management shall be carr- sition of commercial properties and disposal of residential ied out by subsidiaries with local presence in each market, properties. The lease portfolio shall be characterised by and mainly by their own personnel. The current corporate good risk exposure and a large number of tenants in many structure, comprising six subsidiaries, provides capacity different lines of business. which matches the current cyclefavourable economic situation and Castellum’s development project portfolio. The real estate portfolio shall be continuously enhanced spe med i huvudsak egen personal. and developed, to utilize the asset potential. Investments shall be made where the actions permit increased occupancy

7 D IRECTORS’ REPORT

Operations 1999 NNUAL REPORT A

ASTELLUM Organisation In cases where external services are purchased, high C demands are made on the companies used, with regard to Castellum’s operations are organised on a small scale in quality, customer care and service. local management subsidiaries, with the aim of achieving proximity to and a knowledge of the local real estate and The local roots are a major advantage in leasing opera- leasing markets. In order to strengthen local identity, the tions. The subsidiaries are always up to date with regard to companies operate under their own names. The small-scale the current and future needs of the local economy. By acting organisational structure has the following advantages: as partners to companies looking for or leasing premises • Good knowledge of the company’s own properties. from the company, trust and good relations can be created right from the start. • Good knowledge of the local leasing and real estate markets. Confirmation that the subsidiaries have the confidence of • Good knowledge of the tenants’ needs. their customers is the good results which Castellum has obtained in the “Satisfied Customer Index” (NKI), in which • Efficient customer development and leasing. the company has participated since measurements were started. • Participation in local networks. The subsidiaries’ tasks include continuously sounding out • Early indications of business opportunities on the local the presence of potential real estate transactions on the local real estate markets. real estate markets. Local representation makes it possible to • Opportunity for measuring and comparing subsidiaries. identify and initiate such business opportunities at an early stage, and easier to monitor current developments. The local companies shall have good knowledge of their The subsidiaries are actively managed by the parent com- own properties, their tenants and local business conditions, pany measuring and comparing management efficiency and and shall have a well-defined strategy for market performan- asset growth in the real estate portfolio. The companies can ce and customer contact. This is facilitated by management benefit from each other’s experiences and methods, and spe- mainly being carried out by own personnel. cial competence can be made available to the whole organi- The staff that is responsible for the everyday maintenance sation. and operation of the properties, must possess both professio- The parent company is responsible for decisions on major nal competence and a personal aptitude for order and co- investments, acquisitions and disposals, and for financing, operation. These employees have the most contact with the the consolidated accounts, information provision, Group- tenants, and are therefore natural representatives of the land- wide technical competence, and personnel matters. lord. Consequently, not only the practical tasks, but also the r i samarbetet med kunderna. requirements for behaviour, availability and customer service are clearly defined.

Central South-west Malmö, Lund and Stockholm’s inner Värnamo, Jönköping Örebro, Uppsala and Gothenburg, east Gothenburg, Mölndal Helsingborg suburbs and Växjö Västerås Gothenburg and and Borås Hisingen

8 D IRECTORS’ REPORT 1999 NNUAL REPORT A

Personnel IT/IS strategy ASTELLUM C The Group had 182 employees on average during the year, The application of IT/IS (information technology/infor- of whom 132 were salaried employees and 50 were employ- mation systems) in the Group shall support the operations’ ed under a collective agreement. This is a reduction of 4 business objectives, and facilitate effective reporting and persons compared with the previous year. The percentage monitoring of operations. The technology is focused on a of women in the organisation is 27%. limited number of standard products, resulting in lower maintenance costs in the long term. Castellum has stable In line with Castellum’s policy of promoting the continu- and efficient systems on a flexible technical platform, with ing professional development of its staff, various training the potential for adjustments as the operational requirements initiatives were implemented during the year. Among other and technology change. Castellum’s IT/IS policy aims at the things, a 3-year development programme was started in col- coordination of information systems and joint technology laboration with the Stockholm School of Economics. The management within the Group. programme comprises strategic analysis, financial control and leadership training, and is intended to give participants The problem audits and action package implemented increased understanding of questions related to marketing, prior to the new millennium had the desired results, and no customers, products and organisation. functional disruption was reported. As in previous years, all personnel in the Group attended a joint conference, where the Group management and the managing directors of the subsidiaries provided information about activities, and employees were able to exchange views. An attitude survey was also carried out in 1999 among all personnel in the Group. The results showed that the attitudes of the personnel have improved in several respects since the 1998 measurement. The new survey provides further confirmation that the personnel have strong confidence in their own operation, and that they experience good solidarity and participation in the results achieved.

Distribution of work – number of employees Age distribution – number of employees

Number Management/ 60 Customer care/ Finance/ Property Administration 29 % management 57 % 50 Marketing/ Leasing 14 % 40

20 Education level 10

University 31 % Compulsory 0 school 10 % Under 20–29 30–39 40–49 50–59 Over 60 20 years years years years years years Upper secondary school 59 %

9 D IRECTORS’ REPORT

1999 Castellum’s Real Estate Portfolio

In the sections describing Castellum’s real estate portfolio, the properties owned by Castellum on 31 December 1999 are accounted for. EPORT

R Properties acquired/completed during the year have been restated, with regard to income and costs, as if they had been owned for the whole year, while properties disposed of have been excluded entirely. A summary of the real estate portfolio by property type and by region is found on pages 66–67. Amounts in brackets refer to the equivalent period last year. NNUAL A

Real estate portfolio ASTELLUM C Castellum’s real estate portfolio as at 31 December 1999 comprised 565 (557) properties, with a total rental value of SEK 1,477 million (1,340) and a book value of SEK 10,242 million (8,695). The properties’ total lettable area was 2,232,000 sq.m. (2,072,000). The real estate portfolio, which consists solely of Swedish properties in 36 municipalities (36), is concentrated in Greater Gothenburg, the Öresund Region, Greater Stockholm, western Småland and Mälardalen. The main focus of the portfolio, equivalent to 75% of the properties’ rental value at the year-end, is located in the three city regions.

Rental value, by region Mälardalen Greater Stockholm Greater Gothenburg 32 % Öresund Region 22 %

Western Småland 13 % Greater Gothenburg Greater Stockholm 21 % Mälardalen 12 % Western Småland

Öresund Region The commercial portfolio consists of office and retail properties, as well as warehouse and industrial properties mainly concentrated in well-located employment areas with good communications and services in the major towns. Greater Gothenburg and Greater Stockholm account for just Yield after leasing and property management costs was over one half of the commercial portfolio. 8.3% in 1999, compared with 8.1% in 1998. Castellum’s residential properties are situated in central, attractive locations mainly in Gothenburg and Helsingborg, Investments and sales which jointly account for about 70% of the residential port- The change in the book value of Castellum’s real estate portfolio. folio during the year was as follows:

Book value, SEK million Number Rental value, by property type Book value on 1.1.1999 8 695 557 + Acquisitions 1 397 43 Office/Retail 50 % Warehouse/Industrial 34 % + Investments in existing properties 596 – – Sales – 316 – 35 Residential 14 % – Depreciation – 130 – Development projects 2 % Book value on 31.12.99 10 242 565

10 D IRECTORS’ REPORT 1999 EPORT R NNUAL A

In 1999, a total of SEK 1,397 million (485) was invested in In the Öresund Region, a total of SEK 586 million was ASTELLUM acquiring 43 (28) properties. The year’s acquisitions con- invested in acquiring 67,000 sq.m. Investments in existing C sisted solely of commercial properties, of which SEK 589 properties in the Öresund Region totalled SEK 172 million. million were in Greater Gothenburg, SEK 586 million in the In Greater Stockholm, a total of SEK 133 million was Öresund Region, SEK 133 million in Greater Stockholm, invested in acquiring 20,000 sq.m. Investments in existing SEK 67 million in Mälardalen and SEK 22 million in properties in Greater Stockholm totalled SEK 59 million. western Småland. In western Småland, a total of SEK 22 million was In accordance with Castellum’s acquisition strategy, invested in acquiring 13,000 sq.m. Investments in existing several of the newly acquired properties had considerable properties in western Småland totalled SEK 54 million. development potential on possession, in the form of vacant space. In Mälardalen, a total of SEK 67 million was invested in acquiring 14,000 sq.m. Investments in existing properties in Investments in existing properties totalled SEK 596 million Mälardalen totalled SEK 20 million. (227) during the year. This includes new construction, extensions, conversionrefurbishments and completions. The invest- During the year, 34 (54) properties were disposed of. The ments will provide a good yield immediately on completion. sales price, after deduction of sales costs, amounted to SEK 425 million (571), which gave a profit of SEK 109 million Of the total investments of SEK 1,993 million (712), SEK (89). The majority of this year’s sales was of residential 1,938 million related to investments in commercial properti- property, mostly in Malmö, Borås and Värnamo, which es. In addition to the above investments, SEK 500 million fetched a total price of SEK 353 million, and gave a profit was also committed to new construction and refurbishment of SEK 86 million. Eleven commercial properties were sold projects. individually, for a total of SEK 72 million and gave a capital In Greater Gothenburg, 102,000 sq.m. was acquired for gain of SEK 23 million. a total of SEK 589 million in 1999. Investments in existing properties in Greater Gothenburg totalled SEK 291 million.

Castellum’s real estate portfolio on 31.12.1999

Book Area, Rental Economic Rental Operation, Net operat- No. of value, thous. value, occupancy income, maintenance ing income, Yield, properties SEKm sq.m. SEKm rate, % SEKm etc., SEKm SEKm %

Distribution by property type Office/Retail 191 5 168 860 742 91.9 681 219 462 8.9 Warehouse/Industrial 205 2 971 1 062 497 87.8 437 121 316 10.6 Residential 127 1 608 259 211 97.4 206 81 125 7.8 Development projects 7 352 51 27 90.7 24 10 14 3.9 Undeveloped land etc. 35 143——————— Total 565 10 242 2 232 1 477 91.3 1 348 431 917 9.1

Distribution by geographical region Greater Gothenburg 201 3 651 716 473 93.6 442 135 307 8.4 Öresund Region 107 2 397 486 331 90.3 299 92 207 8.6 Greater Stockholm 67 1 749 365 303 91.1 276 101 175 10.0 Western Småland 87 1 225 404 199 89.2 178 55 123 10.0 Mälardalen 68 1 077 261 171 89.2 153 48 105 9.7 Undeveloped land etc. 35 143——————— Total 565 10 242 2 232 1 477 91.3 1 348 431 917 9.1

Leasing and property administration costs –82 –0.8 Net operating income/yield after leasing and property administration costs 835 8.3

11 D IRECTORS’ REPORT

Castellum’s Real Estate Portfolio 1999 EPORT R NNUAL A

Investments and sales in the Group Real estate and leasing market ASTELLUM C SEK m The Swedish real estate market is characterised by a large 2 000 Acquisitions number of players of varying size, where no individual play- 1 500 Investments in existing properties er has a dominant share of the total market. Castellum’s Sales income, property sales share of this market is estimated at only 1%, but due to its 1 000 concentration in a small number of selected markets, the 500 company has a strong position on the local sub-markets. 0 The geographical markets in which Castellum is represen-

–500 ted may be described as stable, and have the necessary conditions for favourable growth. Conditions on the local real –1 000 estate and leasing markets vary, however, greatly, even with- 1997 1998 1999 in the same region. The leasing market for commercial space is highly local in character, resulting in large varia- After the end of the financial year, a further six properties tions in both demand and rental levels, depending on the were sold in January 2000 for SEK 128 million, at a profit town, location in the town, rental use and standard. In gene- of SEK 36 million. ral, a rise in rental levels was noted during the past year in lingspriset efter avdrag för försäljningskostnader uppgick t all sub-markets. As before the rises were greatest in Greater Stockholm, but a similar trend was also noted in Greater Gothenburg and the Öresund Region. Also in western Småland and Mälardalen there was a rise in rental levels even if the rise was lower and focused on the larger towns. Due to improved economic activity on the rental market, property prices generally also showed positive growth in 1999. Accounts of developments on the local markets are found in the respective regional review.

A large office property was acquired in an attractive position in January 2000, between Chalmers University of Technology and Sahlgrenska Hospital in Göteborg. The premises are mainly used by Göteborg University.

12 D IRECTORS’ REPORT

Greater Gothenburg 1999 EPORT R NNUAL A

Real estate portfolio ASTELLUM Kungälv C

Greater Gothenburg is the area where the Castellum port- Alingsås folio has its greatest volume. The total portfolio on 31 E 6 December 1999 comprised 219 properties with a total rental E 20 value of SEK 473 million and a book value of SEK 3,701 Göteborg Lerum Borås million. The Greater Gothenburg portfolio accounts for 32% Partille Härryda of Castellum’s rental value. Greater Gothenburg’s share of t 40 the total rental value of the commercial portfolio is 30%, Mölndal and the corresponding share for the residential portfolio is 50%. Kungsbacka

Gothenburg Region’s rental value, by property type E 6 E 20

Office/Retail 40 % Residential 22 % The majority of the properties is located in Gothenburg municipality. There are also properties in Mölndal and Warehouse/Industrial 38 % Borås, and smaller holdings in Partille, Lerum, Alingsås, Kungälv and Kungsbacka. Central Gothenburg contains commercial properties and a large residential holding. On Yield, leasing and property administration costs amounted Hisingen and in the Högsbo/Sisjö industrial park, there are to 7.7% in 1999. mostly office properties and warehouse/industrial properties.

Castellum’s real estate portfolio in Greater Gothenburg on 31.12.1999 Book Area, Rental Economic Rental Operation, Net operat- No. of value, thous. value, occupancy income, maintenance ing income, Yield, properties SEKm sq.m. SEKm rate, % SEKm etc., SEKm SEKm %

Distribution by property type Office/Retail 53 1 451 211 191 94.7 180 48 132 9.1 Warehouse/Industrial 79 1 302374 177 89.5 159 44 115 8.8 Residential 66 793 123 105 98.4 103 42 61 7.7 Development projects 3 105 8 0 98.3 0 1 –1 –0.6 Undeveloped land etc. 18 50——————— Total 219 3 701 716 473 93.6 442 135 307 8.4

Distribution by geographical region Gothenburg Central Gothenburg 67 1 187 151 139 97.8 136 46 90 7.6 Hisingen 37 518 153 75 88.9 67 19 48 9.2 East Gothenburg 20 303 61 42 95.6 40 17 23 7.9 Högsbo/Sisjön 20 393 81 53 93.3 50 15 35 8.9 Mölndal 26 605 125 71 94.1 67 12 55 9.0 Borås 10 351 72 48 92.6 43 13 30 8.7 Partille/Lerum 7 103 18 14 95.9 14 4 10 9.7 Alingsås 5 84 31 15 76.0 11 5 6 7.1 Kungälv 4 76 13 11 93.3 10 3 7 9.4 Kungsbacka 5 31 11 5 78.74139.4 Undeveloped land etc. 18 50——————— Total 219 3 701 716 473 93.6 442 135 307 8.4

Leasing and property administration costs –27 –0.7

Net operating income/yield after leasing and property administration costs 280 7.7

The schedule of properties on page 68–72 contains a brief description of all Castellum’s properties in Greater Gothenburg.. 13 C ASTELLUM A NNUAL R EPORT 1999 house andindustrial18%. constitute81%oftherentalvalue,and retailproperties ware- 72,000 sq.m.andabookvalue ofSEK351million.Office 31% oftherentalvalue, warehouse andindustrial69%. constitute andretailproperties SEK 605million.Office ties, withatotalareaof125,000sq.m.andbookvalue of residential 32%. 33% oftherentalvalue, warehouse andindustrial35%, constitute andretailproperties SEK 2,401million.Office ties, withatotalareaof446,000sq.m.andbookvalue of centrally located, space. highquality office company willbebetterable tomeetthedemandforlarge, million andwillbecompletedin thespringof2001, to theinvestment, which isestimatedtocostaboutSEK160 spaceandassociatedcarpark. 8,000 sq.m.ofoffice Thanks hets anew toconstruct buildingcontaining AB hasstarted in centralGothenburg was acquired, where EklandiaFastig- acquired. ofabout2,500sq.m.was andretailproperty an office in Borås,where thecompany already hasseveral properties, forfutureconstruction. site withopportunity At Stora Torget Gothenburg. The acquisitionincludedanadjacent vacant and attractive locationwas acquiredatLinnéplatsenin the year, buildingwithahighstandard a7,300sq.m.office pany alreadyowns several properties. At thebeginning of andonein in Backa/Kärra Arendal, areasinwhich thecom- onHisingen,threeofwhich were toitsportfolio properties Eklandia Fastighets AB addedfourwarehouse andoffice largest andmostdynamicindustrialareasinSweden. for about7,000sq.m.inHögsbo/Sisjön,which isoneofthe were acquired, plusavacant sitewithbuildingpermission Gothenburg. properties Another sixwarehouse andoffice which were intheLackarebäckareaalongE6southof were properties acquiredinMölndal,mostof and office strengtheneditsposition.Eightwarehouse,further industrial where Castellum’s Sjögren AB has Harry localsubsidiary acquisitions have beenmadeinHögsbo/Sisjön andMölndal, in1999.Mostofthe 589 millioninacquiring23properties In GreaterGothenburg, Castelluminvested atotalofSEK 14 In Borås, there are 10 properties withatotalareaof In Borås,thereare10properties In Gothenburg municipality, Castellumowns 144proper- The real estate portfolio inMölndalcomprises26proper- The realestateportfolio During theautumn,lastvacant siteatLillaBommen Investments andsales D Greater Gothenburg IRECTORS ’ R 1 000 SEKm Investments andsalesinGreater Gothenburg gain ofSEK20million. tial, were disposedofinthe Annedal district,atacapital ties withatotalareaofabout10,000sq.m.,mostly residen- University HospitalinGothenburg. Inaddition,two proper- Chalmers University of Technology andSahlgrenska 14,300 sq.m.was acquired inanattractive locationbetween year, of property anoffice After theendoffinancial inKungälv.town property andasmalloffice well astwo smallerdevelopment inthecentre of properties onHisingenislandinGothenburg werecial property sold, as andasmallercommer- addition, eightresidentialproperties of SEK189millionandacapitalgain46million.In withatotalsalesprice disposed of,atotalof11properties, company’s residentialholdingsinBoråsandMölndalwas a capitalgainofSEK88million. Among otherthings,the Gothenburg, withatotalsalespriceofSEK347millionand Building Permission chapter, pp31–35.) million. (PleaserefertotheDevelopment Projectsand in ding isunderconstruction Alingsås, estimatedatSEK36 along SöderledeninMölndalmunicipality. buil- An office andwarehouse buildingof2,600sq.m.,both and anoffice completed, andworkshop anoffice buildingof13,000sq.m. During theyear, two projectshave majorconstruction been premiseswillbecompletedin2000. of theyear andoffice million, where residentialtenantsmoved inbeforetheend ed “America House”inGothenburg, estimatedatSEK80 SEK 291million. This includesrefurbishmentoftheso-call- –400 –200 200 400 600 800 During theyear, were 23properties soldinGreater Investments duringtheyear inexisting totalled properties 0 EPORT 1997 Sales income, property sales Sales income, property Investment inexistingproperties Acquisitions 981999 1998 D IRECTORS’ REPORT 1999 EPORT R NNUAL A ASTELLUM C

An office property, Annedal 21:10, was acquired at the beginning of 1999, attractively located on Linnéplatsen in Gothenburg. The acquisition included an empty site with potential for future An office and retail property, Nestor 3, has been acquired at Stora Torget development. in Borås.

Kärra 94:1 and Backa 22:3 Three office and warehouse properties were acquired on Hisingen during 1999, including Backa 22:2 (above) and Kärra 94:1 (below) on the E6 towards Oslo.

An office and warehouse property, Högsbo 24:12, was acquired in the Högsbo-Sisjön industrial park in southern Gothenburg. The property contains a building permission for 4 000 sq.m.

Another office and warehouse property, Högsbo 40:1, was acquired in the Högsbo-Sisjön industrial park in Gothenburg. The property has been extended by 1 500 sq.m. at the expense of the existing tenant.

15 D IRECTORS’ REPORT

Greater Gothenburg 1999 EPORT R NNUAL A

ASTELLUM Market and leasing In Castellum’s portfolio, the average rental levels for office/ C retail were SEK 904/sq.m., and for warehouse/industrial Both business and population growth trends in Greater they were SEK 474/sq.m. New leasing in the commercial Gothenburg, which is the second largest cityarea in Sweden, portfolio amounted to 56,000 sq.m., equivalent to a rental are generally positive. The number of newly established value of SEK 34 million. The occupancy rate for office/retail companies has increased, as has the number of foreign- increased during the year by 3.2 percentage points to 94.7%, owned companies. Several large infrastructure investments and by 3.4 percentage points to 89.5% for warehouse/ are about to be implemented. industrial. Activity on the real estate market in Gothenburg has been good in 1999, even if it has been somewhat slowed by rising Lease expiry structure in Greater Gothenburg prices and falling yield levels. Yield levels for sales of on 31.12. 1999 No. of Area, Lease value, Percentage centrally located commercial property have been between Primary use Term leases thous.sq.m. SEKm of value, % 6 – 7.5%. Yields on warehouse and industrial property in Commercial 2000 278 81 45 13 Högsbo/Sisjö are between 7 – 9.5% and on Hisingen they 2001 386 125 83 23 are between 8 – 10%, with a slightly falling trend. In Borås, 2002 282 137 86 24 yield levels for commercial property in A-B locations are 2003 126 63 40 11 between 7.5 – 10%, depending on type and standard. 2004 28 55 33 9 2005+ 39 81 72 20 The leasing market for business premises in Gothenburg Total 1 139 542 359 100 was characterised by rising demand in 1999, especially Residential 1 528 111 93 Parking spaces and other 703 0 2 during the last quarter. Demand is good for most types of Total 3 370 653 454 premises, but is particularly strong for larger warehouse and logistics premises. Industrial and warehouse premises comb- Residential property in central Gothenburg has been ined with office space have also enjoyed a considerable rise sold to housing co-operatives, with yield levels below 5%. in demand during the last two years. In some sub-markets, Demand for residential property has risen significantly demand for this type of premises has outstripped supply throughout 1999, and there are generally no vacancies in and occasioned new construction project starts. The general areas where Castellum has residential properties. No rent trend is that the leasing market is becoming increasingly increases have occurred during 1999. segmented, with great differences in vacancies and rental levels between different sub-markets. The average rental level in Castellum’s residential properties amounted to SEK 851/sq.m., with an occupancy rate of 98.4%. Rental levels have risen during 1999, mainly in the centre of the city, but a rising trend has also been noted in outlying Local real estate companies areas such as Högsbo/Sisjön, Hisingen and Mölndal, where the location is of decisive importance, however. Castellum’s properties in Greater Gothenburg are owned and managed by the wholly owned subsidiaries Eklandia The rent exclusive of heating for modern, centrally locat- Fastighets AB with head office in Gothenburg, and Harry ed offices is currently between SEK 1,400 – 1,800/sq.m. Sjögren AB with head office in Mölndal. Eklandia’s real Office rents in Högsbo/Sisjön are between SEK 600 – estate portfolio is mainly concentrated in central and east 1,100/sq.m. and they are between SEK 600 – 800/sq.m. on Gothenburg and Hisingen, while Harry Sjögren’s properties Hisingen. Good warehouse premises have rental levels of are located in Högsbo/Sisjön in south-west Gothenburg, between SEK 400 – 700/sq.m. in Högsbo/Sisjön and be- Mölndal and Borås. tween SEK 430 – 520/sq.m. on Hisingen. Retail rents in the centre vary between SEK 3,000 – 6,000/sq.m., depending on Eklandia had 36 employees at the year-end, while Harry location of the premises, size and flexibility. Sjögren had 24 employees. Harry Sjögren has a local management office in Borås.

16 D IRECTORS’ REPORT

Öresund Region 1999 EPORT R NNUAL A

Real estate portfolio Ängelholm ASTELLUM C The majority of Castellum’s properties in the Öresund E 4 Region are located in Malmö, Helsingborg and Lund. At the year-end, Castellum’s real estate portfolio in the Öresund

Region comprised 108 properties, with a total rental value Helsingborg of SEK 331 million and a book value of SEK 2,428 million. The portfolio in the Öresund Region accounts for 22% of Castellum’s total rental value. The Öresund Region accounts Landskrona for 20% of the total rental value of the commercial portfolio, E 6 and 32% of the total rental value of the residential portfolio. E 20 E 22

Burlöv Lund Öresund Region’s rental value, by property type Malmö

Office/Retail 48 % Residential 20 % Svedalat

Warehouse/Industrial 28 % Development projects 4 %

The largest holdings are located in Malmö and Yield after leasing and property administration costs Helsingborg. amounted to 8.0% in 1999. The Malmö portfolio consists exclusively of commercial property – both office/retail and warehouse/industrial properties. In Helsingborg, Castellum has a considerable portfolio of attractively located residential properties.

Castellum’s real estate portfolio in the Öresund Region on 31.12. 1999 Book Area Rental Economic Rental Operation, Net operat- No. of value thous. value, occupancy income, maintenance ing income, Yield properties SEKm sq.m. SEKm rate, % SEKm etc., SEKm SEKm %

Distribution by property type Office/Retail 33 1 269 179 159 94.2 150 42 108 8.5 Warehouse/Industrial 34 493 200 93 80.1 74 23 51 10.2 Residential 38 504 83 67 96.8 65 23 42 8.3 Development projects 2 131 24 12 82.7 10 4 6 4.9 Undeveloped land etc. 1 31——————— Total 108 2 428486 331 90.3 299 92 207 8.6

Distribution by geographical region Malmö 35 1 044 233 147 86.6 127 40 87 8.3 Helsingborg 40 741 137 97 91.7 89 29 60 8.2 Lund 18 455 68 59 98.4 58 13 45 9.8 Landskrona 10 110 22 17 88.5 15 7 8 7.0 Rest of Öresund Region 4 47 26 11 87.8 10 3 7 14.1 Undeveloped land etc. 1 31——————— Total 108 2 428486 331 90.3 299 92 207 8.6

Leasing and property administration costs –16 –0.6

Net operating income/yield after leasing and property administration costs 191 8.0

The real estate schedule on pages 73–75 contains a brief description of all of Castellum’s properties in the Öresund Region. 17 C ASTELLUM A NNUAL R EPORT 1999 nÄngelholm. in Svedala. alsoincludesanindustrialproperty The portfolio krona andMalmö’s suburbanmunicipalities,Burlövand residential and7%development projects. 16%warehouseand retailproperties, andindustrial,46% million. About 31%oftherentalvalue was office 741 SEK a totalfloorareaof137,000sq.m.andbookvalue of residential 19%. 64% oftherentalvalue, warehouse andindustrial17% constituted andretailproperties SEK 455million.Office with atotalfloorareaof68,000sq.m.andbookvalue of 3%. project properties 58% oftherentalvalue, warehouse andindustrial39% constituted andretailproperties SEK 1,044million.Office with atotalfloorareaof233,000sq.m.andbookvalue of house property of7,700sq.m.wasproperty acquiredonFredriksbergs- house andware- created intheCityGallerian.Inaddition, anoffice which new, attractive andeasily accessible retailspacewas refurbishment andextension phasewas started, first in a retail spaceadjacenttocarparkingspace.Duringtheyear, neighbouring site,andthuscreatecontiguousattractive with theCityGallerianarcadeowned by thecompany onthe be possible tocoordinatetheretailpremisesinthisproperty for amulti-storey carpark. Thanks totheacquisition,itwill 5,032sq.m.forresidentialand9,000 sq.m. foroffice, sq.m., ofwhich 9,592sq.m.isforretailpremises,7,042 Hansacompagniet inthecity, withatotalareaof30,666 410 million. The largest acquisitionwas theso-called pany project. alreadyhasanongoingconstruction during theyear, adjacenttotheIdeonarea,where thecom- forabout35,000sq.m.wasbuilding permission acquired for10,000sq.m. building permission Another sitewith theE22motorway.both facing has Oneoftheproperties a totalareaof21,628sq.m.intheRåbyholm industrialarea, included two andwarehouse with properties adjacentoffice for atotalofSEK586millionin1999.InLund, acquisitions FastighetsMalmö, throughitslocalsubsidiary AB Briggen, in In theÖresundRegion, Castellumacquiredproperties 18 The portfolio in Helsingborg comprises 40 properties with inHelsingborg comprises40properties The portfolio In Malmö,Castellumowned attheyear-end, 35properties Other towns where Castellumowns areLands- properties In Lund, Castellumowned attheyear-end, 18properties In Malmö, 6 properties wereIn Malmö,6properties acquiredatatotalofSEK Investments andsales D IRECTORS Öresund Region ’ R Investments andsalesintheÖresund Region –400 –200 SEKm 200 400 600 800 EPORT 0 ties. The totalpurchasepriceamounted toSEK12million. adjacent tooneofthecompany’s larger commercialproper- industrialpark, ofabout900sq.m.intheSofielund property 1,743 sq.m.intheElisedalindustrial park,andanindustrial andwarehouse of property acquired inMalmö,anoffice undeveloped site. buildinginLimhamn(Malmö)andanadjacent let office ofSEK19million. The salerelatedtoafullyon, ataprofit the ÖresundRegion foratotalsalespriceofSEK33milli- Permission chapteronpp.31–35). ted. (PleaserefertotheDevelopment ProjectsandBuilding wassite inHelsingborg, comprising200apartments completion, abouthalfoftheongoingrenovation oftheMunken 1 addi- space.In new office buildingalsocontainingmodern was fromthefacade, demolishedandreplacedbyapart a completed atStora Torget inLund. The entireoldbuilding, of theyear, abrandnew shoppingmallof2,100sq.m.was withatotalareaof42,000sq.m.inMalmö. perty At theend continued onKampen25,anindustrialandwarehouse pro- million duringtheyear. Among otherthings,refurbishment pany’s existing sitesinHelsingborg. building of2,500sq.m.was acquiredononeofthecom- andwarehouse tion totheseacquisitions,anunletoffice Limhamn andthenew bridgearea(toCopenhagen).Inaddi- of 1,420sq.m.inthe industrialparkbetweenAnnetorp sq.m. ontheInnerbeltway property inMalmöandanoffice 2,458 sq.m.together for2,000 withabuildingpermission of property office sq.m. intheElisedalindustrialpark,an totalareaof3,529 gatan, two warehouse witha properties After the end of the financial year, twoAfter theendoffinancial were properties During theyear, Castellumdisposedoftwo in properties Investments inexisting buildingsamountedtoSEK172 1997 Acquisitions Sales income property sales Sales incomeproperty Investments inexistingproperties 981999 1998 D IRECTORS’ REPORT 1999 EPORT R NNUAL A ASTELLUM C

In 1999, two properties were acquired in Råbyholm industrial park in Lund, one of which was Jöns Petter Borg 9 facing on to the E22 highway.

The acquisition of the property at Lybeck 6, the so-called Hansacompagniet, provides an opportunity for creating a contiguous, large shopping centre in central Malmö.

Castellum has acquired an office and warehouse property, Malte 23, on Fredriksbergsgatan in Malmö, which will be subject to considerable upgrad- ing during the next few years.

During 1999 the holdings in the Berga industrial park in Helsingborg were supplemented by an unlet building on the company’s site, Kavalleristen 9. The acquisition will be converted into modern offices.

One of the acquisitions in 1999 was Brandnävan 1&2, facing the inner A major refurbishment of the property at S:t Clemens 27 on Stortorget beltway in Malmö. The acquisition included a building permission for in Lund was completed in 1999. A completely new building containing a 2 000 m2. shopping mall and offices has been constructed behind the preserved facade.

19 D IRECTORS’ REPORT

Öresund Region 1999 EPORT R NNUAL A

ASTELLUM Market and leasing cent to the ring roads has increased as construction of the C new bridge has advanced. Expectations relating to the new bridge link between Malmö and Copenhagen are the main factor affecting market move- In Castellum’s portfolio in the Öresund Region, average ments and optimism in the region. In addition, there are the rental levels were SEK 887/sq.m. for office/retail, and SEK construction of the new university in Malmö, the University 464/sq.m. for warehouse/industrial. New leasing of commer- College in Helsingborg and the planned city tunnel in cial space totalled 51,000 sq.m. during the year, equivalent Malmö. Bridge construction has already resulted in the short to a rental value of SEK 30 million. The occupancy rate for term in increased activity in the local economy, whereas the the commercial portfolio has increased by 2.1 percentage new university is expected to give a more long-term boost points to 89%. to business in the region. This should lead to increasing demand for commercial premises and residential properties. Lease expiry structure in the Öresund Region In Lund, there is already a considerable amount of activity, on 31.12.1999 No. of Area, Lease Percentage whereas it will take a while until the Malmö and Helsing- Primary use Term leases thous.sq.m. value, SEKm of value % borg markets have reached equilibrium. Commercial 2000 164 82 54 24 The rising demand for commercial premises in Lund has 2001 205 87 63 27 2002 187 65 55 24 led to several construction starts. Increased activity in the 2003 72 33 38 16 real estate market has also been noted in Malmö, which 2004 14 12 10 4 has led to rising prices. There is a lack of centrally located, 2005+ 8 17 11 5 modern office space, which has led to modernisation of Total 650 296 231 100 older properties, whereas there are still vacancies in less Residential 1 263 89 68 central locations, despite increasing demand over the past Parking spaces and other 604 33 20 year. New construction of commercial property is still small. Total 2 517 418 319 Future construction in Malmö will mainly be concentrated The demand for residential apartments is high in Lund as in the “University Island”. In Helsingborg, vacancies are still well as Helsingborg and there are currently no significant at a level such as to limit the interest in new construction. vacancies. This means that a certain amount of new construction in particularly exclusive areas occurs in Yield levels for sales of centrally located office properties Helsingborg, with rental levels of SEK 1,200 – 1,500/sq.m., in Malmö are between 6 – 7%. Yield levels for warehouse which in turn opens up prospects of renovating older, well- and industrial premises in Malmö are between 9 – 10%. In located properties on good terms. In addition, an increased Lund, yield levels for office property in A-B locations are number of condominiums in attractive areas can be forecast. in the range of 6 – 8%, and in Helsingborg they are between 7 – 9%, depending on location and standard. For well-locat- The average rent level in Castellum’s residential portfolio ed warehouse and industrial premises in Lund and Helsing- in the Öresund Region was SEK 811/sq.m., whereas the borg, yield levels are in the region of 9 – 11%. occupancy rate was 96.8%. The majority of vacancies were in Landskrona. Rental levels in the region vary sharply depending on the town and location. Centrally located office premises in Local real estate company Malmö, Lund and Helsingborg are at levels of SEK 900 – 1,800/sq.m. whereas vacancies in B and C locations Castellum’s properties in the Öresund Region are owned and in Helsingborg and Malmö lead to considerable local rent managed by its wholly owned subsidiary, Fastighets AB reductions. Vacancies are expected to fall sharply in Malmö Briggen, with head office in Malmö. The company’s activities in the next few years. Retail premises in A locations attract comprise two business areas, “Briggen” with commercial rents in Helsingborg of between SEK 1,200 – 2,500/sq.m., properties in Malmö, Lund, Landskrona, Helsingborg and between SEK 1,700 – 3,000/sq.m. in Malmö and between Ängelholm, and “SkåneBo” with residential properties in SEK 2,000 – 3,500/sq.m. in Lund. Prime industrial and ware- Helsingborg, Lund and Landskrona. Helsingborg has a house premises attract rents of SEK 500 – 700/sq.m. In branch office for residential properties. Fastighets AB Malmö, demand for industrial and warehouse premises adja- Briggen had 29 employees at the year-end.

20 D IRECTORS’ REPORT

Greater Stockholm 1999 EPORT R NNUAL A

Real estate portfolio

t ASTELLUM Castellum’s real estate portfolio in the Stockholm Region C Rosersberg/- is concentrated in expansive inner suburbs with good com- Märsta munications and services. Large office properties are E 4 located in Johanneshov, Bromma, Sollentuna and Akalla, while industrial properties are located in Botkyrka, E 18 Veddesta/Lunda and Rosersberg/Märsta. The total real estate Sollentuna portfolio in Greater Stockholm as at 31 December 1999 Akalla comprised 71 properties, with a total rental value of SEK 303 million and a book value of SEK 1,806 million. Veddesta/Lunda t The portfolio in Greater Stockholm accounts for 21% of Bromma Castellum’s total rental value. Greater Stockholm accounts for 24% of the total rental value of the commercial portfolio. Skärholmen/- Kungens kurva Johanneshov Botkyrka Greater Stockholm’s rental value, by property type E 4 E 20 Office/Retail 69 % Warehouse/Industrial 31 % Yield after leasing and property administration costs in 1999 was 9.2%.

Castellum’s real estate portfolio in Greater Stockholm on 31.12.1999 Book Area Rental Economic Rental Operation, Net operat- No. of value, thous. value, occupancy income, maintenance ing income Yield properties SEKm sq.m. SEKm rate, % SEKm etc., SEKm SEKm %

Distribution by property type Office/Retail 35 1 271 212 209 91.2 191 71 120 9.4 Warehouse/Industrial 32 478 153 94 90.8 85 30 55 11.5 Residential ———————— — Development projects ———————— — Undeveloped land etc. 4 57—————— — Total 71 1 806 365 303 91.1 276 101 175 10.0

Distribution by geographical region Bromma 8 476 81 76 87.5 67 30 37 7.7 Sollentuna 6 293 53 46 89.9 41 15 26 8.7 Johanneshov 2 168 26 25 93.3 24 8 16 9.3 Akalla 4 150 25 32 96.0 30 10 20 13.6 Veddesta/Lunda 10 115 35 21 91.7 19 9 10 8.9 Skärholmen/Kungens kurva 7 162 29 26 94.7 25 8 17 10.4 Botkyrka 4 65 30 16 81.3 13 4 9 14.9 Rosersberg/Märsta 13 160 46 30 92.0 27 7 20 12.5 Rest of Greater Stockholm 13 160 40 31 95.8 30 10 20 12.3 Undeveloped land etc. 4 57—————— — Total 71 1 806 365 303 91.1 276 101 175 10.0

Leasing and property administration costs –15 –0.8

Net operating income/yield after leasing and property administration costs 160 9.2

The real estate schedule on pages 76–77 contains a brief description of all of Castellum’s properties in Greater Stockholm.

21 D IRECTORS’ REPORT

Greater Stockholm 1999 EPORT R NNUAL A

ASTELLUM Castellum owns 33 properties in Stockholm municipality, a total of SEK 28 million, resulting in a capital gain of C with a total area of 203,000 sq.m. and a book value of SEK SEK 12 million. 1,802 million. Office and retail properties constitute 80% of the rental value, and warehouse and industrial 20%. Market and leasing The portfolio in Sollentuna, Botkyrka, and Sigtuna muni- Activity in the real estate market in Greater Stockholm has cipalities comprises a total of 23 properties, with a total area continued to be at a high level during the past year. The of 129,000 sq.m. and a book value of SEK 518 million. required yield in Stockholm suburbs, where the company’s Office and retail properties constitute 45% of the rental properties are located, is 6.5 – 9% for office buildings and value, and warehouse and industrial 55%. 8 – 10% for industrial premises, but with considerable variations depending on the local market situation. Investments and sales Demand for premises has been strong during the year. In Greater Stockholm, four properties were acquired for a The supply of attractive, larger, contiguous, vacant premises total of SEK 133 million in 1999. In Bromma-Mariehäll, is limited. The ongoing construction projects only contain where the company has considerable holdings of commercial a few premises which are not already leased. This has all premises, a vacant office property with 3,417 sq.m. floor meant that rental levels have continued to increase in 1999. space and a warehouse property with 4,350 sq.m. of floor The company’s vacant premises in Greater Stockholm space were acquired. These acquisitions improve the compa- consist of several small units, spread across the company’s ny’s readiness for meeting the rising demand for commercial larger sub-markets. Rental levels in the area vary, depending premises in the area. In addition, Castellum has acquired an on market sector and location. Rental levels in the more office building of 6,500 sq.m. in Edsberg/Sollentuna, north important sub-markets have risen. In Akalla, the rent for of Stockholm, and a warehouse and office building of about office premises is about SEK 1,300 – 1,400/sq.m., which 5,300 sq.m. in Sätra, south of the city. means an increase of about 15% during 1999. The rental Investments in existing properties during the year amounted levels in Mariehäll in Bromma vary between SEK 1,000 – to SEK 59 million. (Please refer to the Development Projects 1,250/sq.m. for offices whereas the rent for warehouse pre- and Building Permission chapter on pp. 31–35). mises is around SEK 900/sq.m. These levels are about 10% higher than for 1998. In Johanneshov, high quality office Castellum has not disposed of any property in Greater rents have also risen by 10 per cent and are now around Stockholm during the year. SEK 1,250 – 1,400/sq.m. Sollentuna is an area where market Investments and sales in Greater Stockholm activity has increased considerably during the year, which has led to a significant increase of the company’s leasing. SEKm 300 Rental levels however have been unchanged at SEK 900 – Acquisitions Investments in existing properties 1,000/sq.m. during the year. Apart from this, the demand for Sales income, property sales industrial and production premises in Skärholmen/Kungens 200 Kurva is strong and only a few vacancies remain. The demand for office premises in the area is still weak, however, 100 with unchanged rental levels. In Castellum’s portfolio in the region, the average rental 0 levels amounted to SEK 984/sq.m. for office/retail premises and SEK 613/sq.m. for warehouse/industrial premises. New leasing in commercial premises amounted to 39,000 sq.m., –100 equivalent to a rental value of SEK 37 million. The occupancy 1997 1998 1999 rate for office/retail has increased by five percentage unit- After the end of the financial year, two small, fully let points to 91.2%, and for warehouse/industrial by 3.3 per- office properties in Gamla Stan have been disposed of for centage points to 90.8%.

22 D IRECTORS’ REPORT 1999 EPORT R

The property Ekenäs 1 is situated in the so called “electronic village” in northern Kista, NNUAL

where the demand for properties increased A strongly during 1999. ASTELLUM C

Considerable new leasing occured in 1999 in the property Ringpärmen 4 in Sollentuna.

In Mariehäll near Bromma Airport, demand for premises was strong in 1999. Vallonsmidet 5 is one of Castellum’s attractive office properties in the area.

The office and industrial property, Linaberg 15 in Mariehäll, were acquired at the end of 1999.

The Ekstubben site at Edsbacka in Sollentuna municipality, comprises a number of buildings.

23 D IRECTORS’ REPORT

Greater Stockholm 1999 EPORT R NNUAL A

ASTELLUM Lease expiry structure in Greater Stockholm Local real estate company C on 31.12.1999 Castellum’s properties in Greater Stockholm are mainly No. of Area, Lease value, Percentage Primary use Term leases thous.sq.m SEKm of value, % owned and managed by the wholly owned subsidiary Commercial 2000 51 33 20 8 Fastighets AB Brostaden, with head office in Stockholm. 2001 168 98 75 27 2002 109 81 71 26 Eight properties in Märsta, in Sigtuna municipality, are 2003 78 77 68 25 owned and managed by the wholly owned subsidiary 2004 15 13 13 5 Aspholmen Fastigheter AB. 2005+ 12 23 25 9 Total 433 325 272 100 Brostaden’s operations are divided into four market areas, Residential 0 0 0 and the company has nine local facilities managers with Parking spaces and other 140 0 5 daily customer contact. Brostaden had 27 employees at the Total 573 325 277 year-end.

The properties Betongblandaren 11 and 12 in Mariehäll were acquired during 1998 and 1999. After being combined and leased, the premises are now being converted for moving in during the spring of 2000.

24 D IRECTORS’ REPORT

Western Småland 1999 EPORT R NNUAL A

Real estate portfolio ASTELLUM C The main focus of Castellum’s real estate portfolio in western Småland is in Värnamo, Jönköping and Växjö. These towns jointly account for 80% of the rental value in western Småland. The total real estate portfolio as at 31 t Jönköping December 1999 comprised 97 properties, with a total rental value of SEK 199 million and a book value of SEK 1,228 million. Vaggeryd Gnosjö The portfolio in western Småland accounts for 13% of E 4 Castellum’s total rental value. Western Småland accounts for Gislaved 13% of the total rental value of the commercial portfolio, and 12% of the total rental value of the residential portfolio Värnamo

Western Småland’s rental value, by property type t Växjö

Office/Retail 38 % Residential 13 %

Warehouse/Industrial 42 % Development projects 7 % Castellum owns 35 properties in Värnamo with a total area of 131,000 sq.m. and a book value of SEK 371 million. Yield after leasing and property administration costs Office and retail properties constitute 62% of the rental amounted to 8.9% during 1999. value, warehouse and industrial 33% and residential 5%.

Castellum’s real estate portfolio in Western Småland on 31.12. 1999 Book Area, Rental Economic Rental Operation, Net operat- No. of value, thous. value, occupancy income, maintenance ing income, Yield, properties SEKm sq.m. SEKm rate, % SEKm etc., SEKm SEKm %

Distribution by property type Office/Retail 31 449 107 74 87.3 65 26 39 8.7 Warehouse/Industrial 40 438 241 84 87.1 73 13 60 13.8 Residential 14 222 37 26 97.0 26 11 15 6.9 Development Projects 2 116 19 15 97.6 14 5 9 6.8 Undeveloped land etc. 10 3 — — — — — — — Total 97 1 228 404 199 89.2 178 55 123 10.0

Distribution by geographical region Värnamo 35 371 131 66 88.7 59 19 40 10.6 Gnosjö 12 141 74 26 98.5 25 3 22 15.8 Gislaved 4 60 20 7 89.3 6 2 4 7.3 Jönköping 14 366 83 53 87.9 47 23 24 6.5 Vaggeryd 6 50 25 9 89.1 8 1 7 14.7 Växjö 16 237 71 38 86.0 33 7 26 10.7 Undeveloped land etc. 10 3 — — — — — — — Total 97 1 228 404 199 89.2 178 55 123 10.0

Leasing and property administration costs –13 –1.1

Net operating income/yield after leasing and property administration costs 110 8.9

The real estate schedule on pages 78–80 contains a brief description of all of Castellum’s property in Western Småland. 25 D IRECTORS’ REPORT

Western Småland 1999 EPORT R NNUAL A

Investments and sales in western Småland ASTELLUM The portfolio in Jönköping comprises 14 properties, with C a total area of 83,000 sq.m. and a book value of SEK 366 SEK m million. Office and retail properties constitute 37% of the 400 Acquisitions rental value, warehouse and industrial 20%, residential Investments in existing properties 300 17% and development projects 26%. Sales income, property sales The Växjö portfolio comprises 16 properties with a total 200 area of 71,000 sq.m. and a book value of SEK 237 million. 100 Office and retail properties constitute 17% of the rental value, warehouse and industrial 65%, and residential 18%. 0

In Gnosjö, Gislaved and Vaggeryd municipalities, there –100 are a total of 22 properties, with a total area of 119,000 sq.m. and a book value of SEK 251 million. Office and –200 retail properties constitute 17% of the rental value, ware- 1997 1998 1999 house and industrial 65%, and residential 18%. After the end of the financial year, two properties were disposed of in Jönköping, one industrial and warehouse proper- Investments and sales ty of 1,953 sq.m. east of the centre, and one office and retail In western Småland Castellum acquired three properties for property of 1,862 sq.m. in the centre of the town. The total a total of SEK 22 million during 1999. sales price was SEK 20 million, which resulted in a capital gain of just over SEK 4 million. Two of the acquisitions were office and warehouse properties with a total area of 10,443 sq.m. in Växjö, where the Market and leasing aim is to successively strengthen the company’s market position. The third acquisition was an industrial property Western Småland has enjoyed rapid economic growth during of 2,570 sq.m. in Värnamo. the 1990s, with stable employment growth and the lowest unemployment in the country. The company’s main three Investments in existing property during the year amount- markets in the area have all enjoyed positive growth during ed to SEK 54 million, of which the largest was the conver- the past year, with generally greater demand, increased sion of a building in Jönköping to a hotel. (Please refer to property prices and improved rental levels. the Development Projects and Building Permission chapter on pp. 31–35). In Jönköping, the demand for commercial premises is good and stable, especially for centrally located office During the year, Castellum has sold 10 properties in premises. The town has developed into a logistics hub, western Småland with a total sales price of SEK 45 million which is partly reflected in the demand for flexible, smaller and a capital gain of SEK 2 million. As part of Castellum’s premises for distribution. strategy to concentrate residential holdings solely to very central and attractive locations, seven smaller properties Market conditions in Värnamo, including rental levels, were disposed of, most of which were residential, in can compare favourably with the larger towns in the area, Värnamo. In addition, an industrial property of 6,600 sq.m. Växjö and Jönköping. The multitude of companies and in Gislaved, a small office property in Värnamo and a diversification between industries gives stability and poten- smaller residential property in Jönköping were disposed of. tial for future growth. The Värnamo area has the highest employment ratio in the country, which has contributed to good demand for premises and residential properties. In 1999, Växjö was awarded the title of the growth municipality of the year, in view of the expansion of the local business sector, the low level of unemployment and stable

26 D IRECTORS’ REPORT 1999 EPORT R NNUAL A

population growth. The service sector is one area enjoying Local real estate company ASTELLUM rapid growth. There are currently 175 companies established C Castellum’s properties in western Småland are owned and in the IT sector alone. managed by the wholly owned subsidiary Fastighets AB Turnover in the real estate market has been limited during Corallen, with head office in Värnamo. Corallen had 27 1999 in all sub-markets, which in Värnamo and Växjö is employees at the year-end. partly due to the fragmented ownership structure. Price levels have increased somewhat, mostly in Jönköping where rising rents for commercial premises are expected. Yield levels vary between 7 – 9% for central office and retail properties, 9 – 10% for warehouses and industrial properties and 6 – 8% for residential properties. Market rents vary considerably, depending on location and standard. Centrally located offices in Jönköping, Värnamo and Växjö have rental levels of around SEK 800 – 1,200 /sq.m. Well-located retail premises pay SEK 1,500 – 2,000 /sq.m. in Jönköping, and SEK 1,000 – 1,400 The holdings in Växjö were reinforced in 1999 by the office and warehouse /sq.m. in Värnamo and Växjö. For warehouse and industrial properties Garvaren 4 (above) and Glasmästaren 1 in Växjö (below). premises, rental levels are generally around SEK 350 – 400 /sq.m. Average rentals in Castellum’s regional portfolio in the region were SEK 694 /sq.m. for office/retail and SEK 350 /sq.m. for warehouse/industrial. New leasing of commercial premises amounted to 45,000 sq.m. during the year, equivalent to a rental value of SEK 23 million. Occupancy rates for both office/retail and warehouse/industrial have fallen somewhat during the year, which is mainly due to acquisitions of property with considerable vacancies and sales of fully let properties. Lease expiry structure in western Småland on 31.12. 1999 No. of Area, Lease value, Percentage Primary use Term leases thous.sq.m SEKm of value, %

Commercial 2000 13142 478 29 20 2001 140 62 31 22 2002 88 39 22 15 2003 52 37 21 14 2004 16 33 14 10 2005+ 17 47 27 19 Total 455 2296 144 100 Modifications and tenant Residential 522 39 27 improvements have been done to Parking spaces and other 443 0 1 Snickaren 12 in Växjö during the Total 1 420 335 172 year.

The average rental level in Castellum’s residential portfolio in western Småland amounted to SEK 717 /sq.m. whereas the occupancy rate was 97%.

27 C ASTELLUM A NNUAL R EPORT 1999 Office/Retail 64% Mälardalen’s rental value, by property type nöig1 0 81 581 7.5 10.1 8.3 8 11.6 22 32 39 6 13 15 8.7 13 14 85. 35 47 94 52 6 95.8 82.4 8.6 87.8 13.6 14 94.6 15 43 63 53 35 55 18 35 75 8.0 32 70 11 83 100 9.7 5 216 7 95 387 46 339 10 19 105 13 2 87.9 5 21 ofallCastellum’s inMälardalen. description properties The realestateschedule onpages81–82containsabrief 91.2 48 Net operatingincome/yieldafterleasing andproperty administrationcosts 109 12 49 1 costs administration Leasing andproperty 153 151 9.7 Total 70 93.1 94 Undeveloped land etc. 89.2 Köping 728 105 Enköping 13 2 260 Västerås 171 39 Uppsala 48 Örebro 16 20 261 Distribution by geographical region 1 153 Total 70 89 079 Undeveloped landetc. 89.2 Development projects Residential 9 Warehouse/Industrial 171 Office/Retail Distribution by property type 261 079 1999 Castellum’s real inMälardalen estateportfolio on31.12. 28 8.7% in1999. Yield administrationcostswas afterleasingandproperty 6% ofthetotalrentalvalue oftheresidentialportfolio. of thetotalrentalvalue and ofthecommercialportfolio, Castellum’s totalrentalvalue. Mälardalenaccountsfor13% book value ofSEK1,079million. withatotalrentalvalueerties ofSEK171millionanda asat31December1999comprised70prop- estate portfolio value ofCastellum’s inMälardalen. properties The totalreal Västerås. These towns jointly accountfor90%oftherental trated inthethreeprincipaltowns ofÖrebro,Uppsalaand inMälardalenismainlyThe realestateportfolio concen- The portfolio inMälardalenaccountsfor12%of The portfolio Real estateportfolio rprisSK qm Emrt,%SK t. EmSK % SEKm SEKm etc., SEKm % rate, SEKm sq.m. SEKm properties o fvle hu.vle cuac noe aneac n noe Yield, ingincome, maintenance income, occupancy value, thous. value, of No. Warehouse/Industrial 29% ————— ———————— okAe etlEooi etlOeain Netoperat- Operation, Rental Economic Rental Area Book Residential 7% D ——— — 2—————— — 2—————— Mälardalen IRECTORS ’ R value andwarehouse andindustrial41%. constitute59%oftherental andretailproperties Office area of83,000sq.m.andabookvalue ofSEK339million. ineachtown. ment areas ened sincethebuildingsareconcentratedinleadingemploy- good development potential.Competitiveness isstrength- communications, arichvariety and ofeducationfacilities centres, Örebro,Uppsalaand Västerås, which allhave good The company owns inÖrebro,withatotal 21properties ismainlyThe Mälardalenportfolio concentratedinthree EPORT Kumla Örebro Köping 7514 E 18 Västerås t E 20 Uppsala Enköping E 4 1 –1.0 –11 11.5 D IRECTORS’ REPORT 1999 NNUAL REPORT A

In Uppsala, there are 13 properties with a total area of about Investments and sales in Mälardalen ASTELLUM C 70,000 sq.m. and a book value of SEK 387 million. Office SEKm and retail properties constitute 94% ot the rental value and 150 Acquisitions warehouse and industrial 6%. Investments in existing properties Sales income, property in sales In Västerås, there are 19 properties with a total area of 100 about 75,000 sq.m. and a book value of SEK 216 million. Office and retail properties constitute 53% of the rental 50 value and warehouse and industrial 47%. In Enköping, there is a centrally located residential hold- 0 ing of about 13,000 sq.m. and a book value of SEK 71 million. –50 Investments and sales 1997 1998 1999

Castellum has acquired four properties in Mälardalen in Market and leasing 1999, for a total of SEK 67 million. Two properties were acquired in Uppsala, for a total of SEK 55 million, an office Developments in the local real estate and leasing markets in and retail property of about 2,450 sq.m. in the centre, and a various parts of the region have varied considerably. The retail property of 7,245 sq.m. in Fyrislund in southern best growth was found in towns with universities and techni- Uppsala, where the company already owns a number of cal industry, i.e. the areas where Castellum’s portfolio is properties. located. Activity in the real estate market in the area has generally increased during the year, which has led to increased prices and reduced yield levels. For good management properties in central locations in the largest towns, yield levels are in the range of 6.5 – 7.5%. Commercial properties in more peripheral locations have yield levels of between 7.5 – 9%. High property prices probably mean that future rent rises are already allowed for, which limits the future potential A retail property, Årsta 74:1, has been acquired in the Fyrislund area of for the purchaser. Uppsala. The premises will be converted, to better meet market needs, during the coming year. The leasing market in the area has been good during the year, with stable demand and increased occupancy in all Two properties were acquired in Västerås, for a total of sub-markets. As regards offices modern premises are most SEK 12 million, a vacant office and warehouse property of in demand, which means that it has been possible to com- about 1,940 sq.m. and a largely vacant warehouse and office plete and let shells which were previously vacant. Demand building of about 1,900 sq.m. Both these properties are situ- for industrial and warehouse premises is not as great, but the ated in the Tunbytorp area, north of the town centre, and company’s leasing is good. Customer optimism has form a good complement to the company’s previous hold- increased, which indicates a continued rise in new leasing. ings in the area. Market rents for commercial premises have risen by up Investment in existing properties during the year amounted to 10% during the year. Offices in the areas where the to SEK 20 million. (Please refer to the Development company owns properties currently have rental levels of Projects and Building Permission chapter on pp. 31 – 35). SEK 650 – 950/sq.m. The highest rents of up to SEK 1,100/sq.m. are obtained for central premises in Uppsala. Castellum has not sold any properties in Mälardalen dur- In warehouse and industrial properties, rent increases have ing 1999. been smaller and rents are around SEK 500 – 600/sq.m.

29 D IRECTORS’ REPORT

Mälardalen 1999 EPORT R NNUAL A

Lease expiry structure in Mälardalen on 31.12.1999 ASTELLUM Local real estate company

C No. of Area, Lease Percentage Primary use Term leases thous.sq.m. value, SEKm of value, % Castellum’s properties in Mälardalen are owned and Commercial 2000 87 20 14 9 managed by the wholly owned subsidiary Aspholmen 2001 137 71 45 31 Fastigheter AB, with head office in Örebro. Aspholmen 2002 150 61 42 29 had 24 employees at the year-end. The company has local 2003 84 40 28 19 management offices in Västerås and Uppsala. 2004 16 11 7 5 2005+ 9 17 11 7 Total 483 220 147 100 Residential 175 12 10 Parking spaces and other 284 1 2 Total 942 233 159

In Castellum’s portfolio in the region, the average rental levels were SEK 723/sq.m for office/retail and SEK 526/sq.m for warehouse/industrial. New leasing of commercial premises amounted to 25,000 sq.m., corresponding to a rental value of SEK 19 million. The occupancy rate for office/retail has risen by 0.3 percentage points during the year to 87.9%, and for warehouse/industrial by 0.2 percentage points to 91.2%. Castellum’s residential portfolio in Mälardalen, which is mainly located in Enköping, had an average rental level of SEK 807/sq.m. and an occupancy rate of 93.1%. The office and retail property Dragarbrunn 20:2 in central Uppsala was acquired at the beginning of 1999.

In Tunbytorp in northern Västerås, where the company already owns properties, the holdings have been supplemented by the office and warehouse properties, Friledningen 13 (above) and Elledningen 1 (below).

30 D IRECTORS’ REPORT

Development Projects and Building Permissions 1999 NNUAL REPORT

The real estate portfolio is constantly improved and devel- In Lund, a major refurbishment of an existing retail pro- A oped in order to utilise its potential value. This is done by perty on Stortorget has been completed. Since the property both investment in existing properties and by new construc- is located in an area with mediaeval remains, the refurbish- tion. Investments shall be made when they permit a higher ment was preceded by a special archaeological survey. Only ASTELLUM occupancy rate, increased rents and improved cash flow. the facade of the original building has been retained, behind C When a business plan has been drafted for a building, the which a modern shopping mall has been built, with a total necessary assessments and considerations are made, which floor area of 2,100 sq.m. The mall, which is fully let, was can subsequently lead to an investment proposal. In this pro- inaugurated at the end of 1999. cess, consideration is given to the unique character of each property, its potential and target tenant mix. New development potential is constantly added through acquisition of both completed buildings to manage, and sites with building permission. The company has well-located sites with building permission which make it possible to participate in new construction of commercial property at the rate which demand and investment scope permit. Development projects completed during 1999 The following projects can be mentioned, among the major projects completed during 1999: A building was constructed on Söderleden in Mölndal, containing 13,000 sq.m. office and workshop area, which has been entirely occupied by ABB companies . The project, which was completed in the autumn of 1999, amounted to a total of SEK 140 million.

Interior from the newly opened shopping arcade, Carl Werner, at Stortorget in Lund. On Trelleborgsvägen, which is one of the major entry routes to Malmö, the company owns a former industrial site, which will be successively converted into offices and retail. The first phase comprising construction of 3,400 sq.m. of new retail premises was completed during the autumn of

One of the major investments in 1999 was the construction of a new 1999. building for ABB at Söderleden in Mölndal.

On an adjacent site on Söderleden, a new industrial and office building was constructed containing 2,600 sq.m., which is fully let.

Another fully rented new building was completed at Söderleden in Mölndal during 1999. A new shop building was inaugurated at Trelleborgsvägen in Malmö during 1999.

31 D IRECTORS’ REPORT

Development Projects and Building Permissions 1999 NNUAL REPORT

A Started, uncompleted projects At the turn of the year, there were started but uncompleted major projects associated with investments totalling about

ASTELLUM SEK 700 million. The following projects can be mentioned. C A major refurbishment of the so-called America House on the dockside, one of Gothenburg’s most well-known monu- mental buildings, which is included in the municipality’s conservation plan. Renovation has been carried out with great care, since part of the building is listed. After refur- Renovation of the “America house” bishment, the building will contain 56 small apartments and will be completed during 2000. about 5,000 sq.m. premises for offices and shops. The first residential tenants moved in before the year-end, and the project will be completed in its intirety during 2000. The total refurbishment cost is estimated at SEK 80 million.

Perspective sketch of the new office building being constructed at Lilla At Lilla Bommen in central Gothenburg, a site with build- Bommen in Göteborg. ing permission was acquired during 1999, where construction of a new office building of about 8,000 sq.m. and atta- In Alingsås, an office building of about 3,500 sq.m. is ched garage has been started. Thanks to this project, which being constructed on one of the company’s sites, adjacent is estimated at SEK 160 million, the company will be better to the highway E20. The new building, which is fully let, able to meet the growing demand for large, centrally located involves an investment of about SEK 36 million. office space of high quality. The project is expected to be completed in the spring of 2001. Construction of a new office building was started on the site at Gjutaren 26, close to the E20 in Alingsås during 1999.

32 D IRECTORS’ REPORT 1999

In Alingsås, refurbishment of a warehouse and industrial property consisting of a number of separate buildings is also NNUAL REPORT A in progress. The building currently being refurbished was built in 1888 and contains low-grade premises, which have been vacant for a long period of time. The investment of ASTELLUM

about SEK 20 million entails extensive refurbishment and C will offer the entire property a much better future.

The property Stockholmsledet 8, also referred to as “Lundaporten” in Lund has been enhanced by a further wing. Development projects/sites with building permission The majority of Castellum’s sites with building permission are in large urban areas. The portfolio contains sites with building permission with a total of 728,000 sq.m. This includes 275,000 sq.m. in Greater Stockholm, 269,000 sq.m. Modification of the property at Konfektasken 15 in Alingsås is underway. The new premises are fully rented. in Greater Gothenburg, 112,000 sq.m. in western Småland, 60,000 sq.m. in the Öresund Region and 12,000 sq.m. in Mälardalen. These sites with building permission are at A property containing a student hall of residence in central various stages of planning and construction or design is in Jönköping is being converted into a hotel. The property has the progress in some locations. Planning has been intensified best location in the city for hotel operation, at the same time as during 1999 and there are projects in Greater Stockholm, the potential market for hotel services has progressively been Gothenburg, Malmö and Lund where planning is at an improved, through increased trade fair and congress activity advanced stage. and the expansion of the University College. When the project is completed in the spring of 2000, the hotel will have just Greater Stockholm over 200 rooms. North of Stockholm, at Norrviken Strand, half way to Arlanda Airport, there is a major site with building permission for about 110,000 sq.m. adjacent to the highway E4/E20. This is one of the premier sites in the Stockholm area with potential for high-quality workplaces with access to both good communications and beautiful rural surroundings.

Jönköping will receive a new, large, central hotel when conver- sions to the property Hotellet 8 are completed.

In the expansive Ideon area in Lund, Castellum owns several properties, including the so-called “Lundaporten” which is being extended with a new wing of 4,500 sq.m., containing three floors of office space, and a basement and roof space which could be fitted out. In addition, a further upgrade of the existing building is being carried out. The total investment cost is estimated at SEK 50 million. Norrvikens Strand between Stockholm and Arlanda offers extensions to premises with considerable environmental value for the tenants.

33 D IRECTORS’ REPORT

Development Projects and Building Permissions 1999 NNUAL REPORT

A One of the largest sites with building permission in the Öresund Region Stockholm area is Smista Park/Huddinge on the highway During 1999 the company acquired a building permission E4/E20 at Kungens Kurva, south of Stockholm. The site for about 35,000 sq.m. at the Ideon area in Lund. with building permission, which comprises 125,000 sq.m. Construction is planned to take place in stages, the first of ASTELLUM

C is mainly intended for offices and warehouses/logistics, but which will start in 2000. The first stage will consist of two also residential, is currently subject to masterplan revision. buildings close to the highway E22 with a total lettable area of about 9,000 sq.m., of which about half is let. When fully developed, the project will consist of eight buildings with good internal communication facilities.

Smista Park as the area could be when construction is completed.

In Johanneshov, adjacent to Globen City, there is a building permission for about 15,000 sq.m. Design work is in progress for a building which is intended to house larger service companies, a restaurant and other local services. Construction will start as soon as rental agreements have The first stage of construction on a newly acquired building permission in the Ideon area in Lund will start in 2000. been signed.

Further development of the former sock factory at Trelleborgsvägen in Malmö will continue. The first expansion stage has recently been completed and the construction of an new, fully let retail building has been started. In addition, the company will be able to develop a further 4,000 sq.m. retail premises and 8,000 sq.m. office premises by fitting out shells in the former industrial buildings.

Greater Gothenburg In Greater Gothenburg there are a number of sites with building permission in the large and expansive Högsbo/ Near the Globe Arena in Stockholm, there are plans for construction of a Sisjön/Åbro industrial park south of Gothenburg, where the new office building. (Photo montage). company has a large holding. These building permissions total about 70,000 sq.m. Western Småland There is also a building permission with an attractive, Castellum’s sites with building permission in western highly visible location for 40,000 sq.m. office premises, Småland total about 112,000 sq.m., of which about 30,000 located close to the E6/E20 and highway 40 to Landvetter sq.m. is located in Värnamo, about 6,000 sq.m. in Jönköping Airport and Borås. A design proposal for an office building and about 50,000 sq.m. in Gnosjö. of high technical standard has been prepared through an architectural competition.

34 D IRECTORS’ REPORT 1999 NNUAL REPORT

Mälardalen A The company owns a building permission at the entrance to Aspholmen, the most attractive employment area outside Örebro, where building permission has been granted for a ASTELLUM

new office building of about 3,000 sq.m. Construction is C expected to start at the beginning of this year.

Proposal for a new office building by the E6/E20, south of central Göteborg

During 1999, an office property with a building permission of 4,000 sq.m. belonging to it was acquired at Linnéplatsen in central Gothenburg. There are also about 50,000 sq.m. of sites with building permission along the E6 on Hisingen.

Construction of a new office building will start shortly in the Aspholmen area in Örebro.

HÖGSBO 1.700 sq.m. MÖLNDAL

BIFROST FRÖLUNDA 1.200 sq.m.

JÄRNBROTT . EN

Tynnereds- R

motet M

H HÖGSBO

A D 2.300 sq.m.

4.000 sq.m. Åbyfältet E6 E20 VÄ ST ER LE DE N Järnbrottsmotet ÅBY Sisjömotet 2.500 sq.m. 24.000 sq.m. SÖDERLEDEN

4.000 sq.m.

SÄRÖLEDEN SISJÖN 15.000 sq.m. 2.400 sq.m. 8.100 sq.m. 2.800 sq.m. 158 RÄVEKÄRR 4.800 sq.m. 2.800 sq.m. ÅBRO 2.800 sq.m. The company owns land with building permission for a total of 70 000 m2 in the Högsbo-Sisjön-Åbro area along Söderleden in Göteborg and Mölndal. The company owns four office properties at Akalla in Sites with building permission in the Stockholm region north-west Stockholm, close to the E4/E20, which form a also include about 10,000 sq.m. in the Eriksberg industrial contiguous unit of about 25,000 sq.m. existing premises. park in Botkyrka municipality. The property, which is close There is also a building permission for about 12,000 sq.m., to the E4/E20 and adjacent to the company’s largest ware- where the company has started design work for an office house property in the area, is planned for warehouse and building, conference facilities and a restaurant. distribution use.

Ekenäs 1-4 in northern Kista are modern office buildings with space for further extensions (framed areas)

35 D IRECTORS’ REPORT

1999 Valuation Model EPORT R NNUAL

A According to accepted theory, the value of an asset consists of Required yield the net present value of the future cash flows, which the asset is The required yield is the weighted cost of borrowed capital and expected to generate. This section aims to describe and illustrate equity. a cash flow-based model for the calculation of the value of the

ASTELLUM • The cost of borrowed capital was assumed to be the

C real estate portfolio, and the company’s adjusted equity. interest expense for loans with an average term of approximately 2.5 years. Model – calculation of the value of the real estate portfolio • The cost of equity is based on a “risk-free interest rate” equivalent to the long government bond rate, with the addition of The calculation of the value of the real estate portfolio is made a “risk premium”, and any tax arising. The risk premium is on the basis of the cash flow’s estimated growth over the next individual for each investment, and depends on the investor’s 10 years, based on assumptions concerning occupancy rate, and opinion of future risk and potential. rental and cost growth.

The value of the real estate portfolio is calculated in this model Castellum’s internal valuation as the total present value of net operating income, including Castellum carried out an internal valuation of all its properties interest subsidies, for the next 9 years, and the present value of as at 31 December 1999. The valuation was carried out in a the estimated residual value in year 10. The residual value in uniform manner, and was based on a 10-year cash flow model, year 10 consists of the total present value of net operating in- which largely corresponds with the valuation model presented come over the remaining economic life. The estimated market here. The internal valuation shows that the properties’ long- value of undeveloped land and associated building permissions term cash flow-based value exceeds the book value by a good margin. is added to this amount. Ever since Castellum’s formation, this cash flow-based valu- The required yield and the assumption concerning future real ation model has formed the basis for decisions on acquisitions growth, are of vital importance for the calculated value of the and sales, and for investments in existing properties. This cash real estate portfolio since they are the most important value- flow-oriented approach shall be seen in the light of Castellum’s driving factors in the calculation model. overall strategy of focusing on growth in cash flows and earnings.

Example – calculation of the real estate portfolio’s value and adjusted equity

To illustrate the model, the following example was drawn up for the calculation of the real estate portfolio’s value, given certain assumptions. Adjusted equity is calculated on the basis of this value. It should be noted that the assumptions concerning cash flow growth and other assumptions included in the model are only intended to illustrate a calculation of the real estate portfolio’s value.The example shall thus not be regarded as a forecast of the company’s expected earnings trend, or as an indication of the real estate portfolio’s actual market value. Assumptions and conditions • Net operating income for 1999, excluding development projects, • The equity/assets ratio was assumed to be 30%, which is equiva- is the basis for the example (see table on page 11). lent to Castellum’s target for a minimum equity/assets ratio. • The economic occupancy rate is estimated to increase over the • Tax consequences were only taken into account when estimating next three years, to reach an estimated long-term level of 95 % adjusted equity, and then at a discounted tax rate of 20 %.. by 2001. • The required yield is calculated in accordance with the following • Growth in net operating income was assumed to increase by 1% assumptions:den: per annum over the whole calculation period, and both rental value and property costs are assumed to increase at the same rate. Required Percentage Weighted yield, % of capital, % required yield, % • The average economic life of the real estate portfolio was assu- Interest rate on med to be 50 years. borrowed capital 6.0 70 4.2 • Land with building permission for 683,000 sq.m. was estimated to Required yield have a market value of SEK 600/sq.m., a total of SEK 410 million. on equity 9.2–19.3 30 2.8–5.,8 Total land with building permission for 728,000 sq.m. was thus Weighted required yield 100 7.0–10.0 reduced by 45,000 sq.m. which is included under development properties.

36 D IRECTORS’ REPORT 1999 EPORT R NNUAL

SEKm 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 A Rental value 1 450 1 465 1 479 1 494 1 509 1 524 1 539 1 555 1 570 1 5861 1 602 Rental income 1 324 1 364 1 405 1 419 1 433 1 448 1 462 1 477 1 492 1 507 1 522 Occupancy rate, % 91 93 95 95 95 95 95 95 95 95 95 ASTELLUM

Property costs –503 –508 –513 –518 –523 –529 –534 –539 –545 –550 –556 C Net operating income 821 856 892 901 910 919 928 938 947 957 966 Interest subsidies 12 432 Cash flow 833 860 895 903 910 919 928 938 947 957 966

Discounted cash flow years 1–9 5 811 Discounted cash flow Discounted market value year 10 6 097 12 705 Discounted market value Book value projects 352 Assumed value of undeveloped land etc. 410 Total property value 12 670

Real estate portfolio’s value for various On the basis of the above, the following calculation can be made required yields and growth of the Group’s adjusted equity as at 31 December 1999 for various The diagram below shows how the calculated value of the real required yields. estate portfolio varies with different assumptions concerning Required Required Required required yields and growth. SEKm yield, 7.0% yield, 8.5% yield, 10.0% Calculated value of properties 15 121 12 670 10 893 SEKm 18 000 Book value of properties –10 242 –10 242 –10 242 Market value of loan portfolio –8 –8 –8 17 000 Surplus value before tax 4 871 2 420 643 16 000 Deduction of deferred tax, 20% –974 –484 –129 15 000 Tax recoverable, 20% 286 286 286 Surplus value after tax 4 183 2 222 800 14 000 Equity 3 969 3 969 3 969 13 000 Adjusted equity 8 152 6 191 4 769 12 000 Adjusted equity per share, SEK 163 124 95 11 000 Growth 2 % Growth 1 % 10 000 Growth 0 % The diagram below shows how adjusted equity per share changes 9 000 10 %9 %8 %7 %with different assumptions concerning required yield and growth.

Calculation of adjusted equity SEK In addition to the above calculation of the real estate portfolio’s value, two further items were taken into account – the market value 200 of the loan portfolio and tax consequences. Due to falling market rates, the mean interest rate in the loan portfolio is higher than the 180 equivalent refinancing rate as at 31 December 1999.The discounted 160 value of this rate difference is SEK –190 million. An adjustment for tax was made, by the deduction of tax on surplus values, and by the 140 addition of tax recoverable on deductible deficiencies etc. (see 120 page 47). In both cases, a discounted tax rate of 20 % was applied. 100 Growth 2 % 80 Growth 1 % Growth 0 % 60 10 %9 %8 %7 %

37 D IRECTORS’ REPORT

1999 Environment

The reported comparisons for energy and water consumption, EPORT

R as well as access to waste separation at source and recycling have been influenced by annual changes in the real estate portfolio. NNUAL A Quotations from “An Environmental Policy for Castellum” The overall objectives for the environment require that the ASTELLUM Environmental matters are given high • More efficient water and energy use. C priority in Castellum’s activities, and whole Group shall: • Conversion from local heating to • Follow the precautionary principle – the environmental work is regarded as being suspicion that a product, technique or pro- district heating. essential for allowing the company to cess is environmentally damaging is suffici- • Reduction in the waste quantity and achieve its financial targets. For this ent for us to abandon it; no overwhelming increased access to separation at or scientific proof is required. reason, environmental work is a con- source. stant process, integrated with ordinary • Follow the substitution principle – inferior • Continued demands on that sub- products, techniques, processes and attitu- activities. Great emphasis is placed on des should continuously be exchanged for contractors and suppliers for in- an overall view, motivation and compe- better ones, as soon as these are available. creased environmental responsibility. tence. • Constantly strive to improve the use of • Continuous environmental auditing of our resources, and to use environmentally the properties. sustainable materials and methods. Organisation Energy and water use, and waste man- • See measures to improve the environment Castellum’s environmental policy covers as long-term investments. agement are the factors which have the all aspects of the business, management, • Promote and encourage the environmental greatest environmental impact in the operation and maintenance, as well as awareness of our employees through fur operations. refurbishment and new construction. their education, motivation and informa tion, and make them aware of their envi- Each local subsidiary has adopted an ronmental responsibility. Water, drainage and energy All energy production causes an envi- environmental statement which contains • Inform tenants of their environmental environmental sectors to be addressed. impact and the opportunities for acting in ronmental impact. The largest environ- Targets for each environmental sector a more sustainable way. mental problems are the greenhouse are stated in a plan of action, together • Collaborate with environmentally aware effect and the effects of acid rain on with the way in which the targets are to consultants, contractors and suppliers. land and watercourses. The use of be achieved. nuclear energy also causes considerable environmental problems, both when fuel is extracted and in Castellum has chosen to concentrate on working on the waste disposal. following environmental sectors: Objective: More efficient water and energy use • Water, drainage and energy The energy and water use in buildings is tracked continu- • Waste management ously. Action can then be taken to reduce consumption in • Traffic and transport buildings with high consumption. Examples of actions taken • Green areas, local environment are improved monitoring and automatic control systems for • Purchasing heating, movement-controlled lighting, flushingwater saving • Acquisition, new construction, refurbishment and maintenance taps and toiletsWCs, low-energy light bulbs etc. Electric • Polluting and hazardous substances water heaters have been installed in several buildings for • Administration and office more efficient water heating with less environmental impact • Tenants’ activities during the summer months. Eklandia Fastighets AB has coll-aborated with the water works (VA verket) in reviewing Environmental objectives and all water meters. The size of the water meters was optimised activities during 1999 to suit the water consumption of the buildings. Some of the environmental work carried out and the joint , Eklandia switched to “Good environmental choise main goalsoverall objectives for the year are reported below. electricity” during 1999, known as “green” electricity. In addition, Fastighets AB Corallen and Aspholmen Fastigheter Since environmental work is carried out continuously in a AB have negotiated purchases of “green” electricity for decentralised manner, the quantifiable targets differ between some of their management districts. Fastighets AB Briggen companies in the Group. The following joint overall objec- had previously switched to “green” electricity. Fastighets AB tives applied to 1999: Brostaden has signed a contract to purchase only hydroelec- tric power for their buildings. 38 D IRECTORS’ REPORT 1999 EPORT R NNUAL A

The energy and water consumption in 1998 and 1999 is re- The proportion of tenants who are able to separate organic ASTELLUM

ported below, distributed by type of energy. The total energy material and paper at source is shown below. As seen, 47% C consumption was reduced by 2% from 1998 to 1999. of residential tenants were able to separate organic material Consumption is, however, highly dependent on occupancy in 1999, which is an improvement of 12 percentage points rates, size and composition of the real estate portfolio, activ- compared with 1998 and 26 percentage points better than ities in the premises and the location of the premises. 1997. Access to paper recycling was improved by 1 percent- Several of these factors have changed from year to year. In age unitpoint for residencesresidential properties between Castellum’s portfolio, tenants occupying 361,000 sq.m. are 1998 and 1999. The subsidiaries work with several other responsible for energy costs themselves. fractions in addition to organic material and paper recycling, such as collection of fluorescent tubes, sheet metal, plastics, Objective: Conversion from local heating to district heating glass, corrugated board and flammable material. Work continues in converting space heating to district heating, in order to reduce the use of non-renewable sources of Residential 47 % 1999 energy. During 1998, 39,000 sq.m. was converted from elec- properties 35 % 1998 tricity and oil, and in 1999 the corresponding figure is with access 16,000 sq.m. District cooling has been installed in 23,000 to separation of 21 % 1997 organic matter sq.m. during 1999, compared with 4,000 sq.m. in 1998.

Waste management Waste material or refuse has an impact on our entire living environment. It leaks environmentally harmful toxic sub- 93 % 1999 stances, takes up large areas for landfill, and generates Residential properties with 92 % 1998 hazardous substances when unsortedincinerated unseparated access to in incineratorsincineration plants. This is a vast waste of paper recycling 83 % 1997 resources.

Objective: Reduction in the waste quantity and increased access to separation at source Methodical work has been in progress since 1996 to reduce the quantity of refuse sent to landfills, by offering tenants 66 % 1999 increased access to separation at source. To succeed with Commercial premises with 66 % 1998 this, the local companies provide their tenants constantly access to with information. paper recycling 49 % 1997 Tenants at Eklandia’s commercial premises are provided with solutions which are individually suited to their needs. Where separation at source is introduced, the tenants have participated in setting up the facilities. Brostaden has a col- laboration agreement with a waste management company, Energy and water consumption (degree day adjusted) Ragnsells i Stockholm AB, who careprovide operation and Energy and water consumption are dependent on the following factors: - Occupancy rate fit-out of “environment rooms” where residual waste is sep- - Composition and size of real estate portfolio arated at source and dealt with in an environmentally correct - Operations in the premises - Location of the premises manner. 1999 1998 District heating, MWh 148 373 154 723 Distribution of energy consumption Oil, MWh 19 183 19 369 Electricity, MWh 47 577 43 776 District heating 67 % Electricity 22 % Gas, MWh 5 171 7 276 Oil 9 % Water, m3 880 616 1 086 129 Gas 2 %

39 C ASTELLUM A NNUAL R EPORT 1999 on buildingsandland. been surveyed any todetermine influence they mighthave and tested.Previous activities inthebuildingshave also the sectorforsuchwork, so various routineshave beentried There arenocommonstandards in electromagnetic fields. mental riskswhich mightoccur, such as asbestos,PCBand The buildingsarecontinuously inspectedfor any environ- Continuousenvironmental auditingoftheproperties Objective: achieve thelowest possible environmental impact. sumption andwaste managementroutinesareoptimised, to vehicles which arefuelledby RME(oilrapeseedfuel). new vehicles. During1999,Briggenhaspurchasednew with thebestenvironmental compatibilitywhen purchasing ronmentally adaptedfuelsandtogive prioritytothemodels is toutilizevehicles aspossible, asefficiently touseenvi- ardous substances. how they areused, tominimisetheuseofpollutingandhaz- are signedwithnew tenants. processing ofresourcesandwaste materialarereported. work methods,materialandenvironmental declaration,and which materialshandling,product andmaterialschoice, an environmental managementplanfromthecontractor, in orders when placingcontracts,which includesdemanding environmentallytheir productsandservices compatible. objective istoselectthesupplierswho arebestatmaking the environmental andhealthimpactoftheproducts. The policy anddocumentationoftheirenvironmental work, plus contract. Suppliersshallbeable toshow anenvironmental maintenance, demandsonthesupplierarestipulatedin mental impact.Duringnew refurbishmentand construction, andprevious activities,current toconsidertheirenviron- isacquired,When aproperty acarefulinspectionismadeof increased environmental responsibility for andsuppliers Demandsthatoncontractors Objective: Other sectors 40 In the administration and office sector,In theadministrationandoffice purchasing,con- As regards theGroup’s theobjective andtransport, traffic The companiesmake anauditoftheproducts foundand Environmental aspectsarealways consideredwhen leases Several subsidiariesmake environmentally compatible D IRECTORS Environment ’ R putes. mental organisation, DetNaturligaSteget. environmentally progressive listedcompaniesby anenvironmental work incustomernewsletters, etc. ontheInternet direction. municipal suppliersinamoreenvironmentally compatible panies, withtheaimofinfluencingpublic authoritiesand inlocalcollaborationbetweenalso participates majorcom- between theUniversity andlocalbusinesses. The company anetworkthe aimofforming forenvironmental matters, Gothenburg University. “Environmental 2000”has Library “Environmental 2000”which isadministered by Library ties withenvironmental diplomas. natural andculturallandscapes,companiesactivi- other bodies.Onegoaloftheenvironmental mapistoshow tion withGothenburg Cityenvironmental and department been producedby organisation theEkocentrum incollabora- of theGothenburg region environmental mapwhich has inanevaluationbuilding material.Eklandiahasparticipated renovation ofachildren’s hospitalinRiga,by recycling their own environmental activities. Brostadensponsorsthe able toexchange views andcanoffer about information organisations inenvironmental matters.Inthisway, they are The localsubsidiariescollaboratewithothercompaniesand objectives for2000arethesameas1999. targets.own quantifiable This meansthatthemainjoint ly hasits ongoingprocesses,where eachlocalsubsidiary out previously, theobjectives aretoberegarded asconstant- objectives willapply foralongperiodoftime. As pointed tal careactionscanbediscerned, thejointenvironmental considerable timebeforecleareffects ofmany environmen- managementisanactivitySince property where ittakes a Castellum doesnothave any ongoingenvironmental dis- In 1999,Castellumwas ranked asoneofthe50most theirtenantsaboutenviron-The companiesinform Sjögren AB isincludedasareferencecompanyHarry in EPORT Environmental objectives for 2000 External contacts D IRECTORS’ REPORT

Financial review 1999 EPORT R NNUAL A

Summary Rental income ASTELLUM C The net income for the year was SEK 409 million (320), The Group’s total rental income was SEK 1,256 million representing earnings of SEK 8.18 per share. This is a 28 % (1,200) in 1999. Rental income consists of the rental value, increase on the previous year’s earnings of SEK 6.40 per with a deduction for the value of areas vacant during the share. Cash flow including capital gain from property sales year. was SEK 555 million (452), equivalent to SEK 11.10 per share (9.04). Income from property management improved Rental value by 29 % to SEK 300 million (282). Rental value refers to the rental income received plus the estimated market value of unlet areas. The rental value also The earnings improvement consists of both increased earn- includes supplements debited to the tenant, such as heating, ings from ongoing property management, due to improved real estate tax and index supplements. leasing and the acquisition of properties with good yields, and an increased capital gain from property sales. The table below shows the rental value per square metre, distributed by property type and geographical region. Rental income totalled SEK 1,256 million (1,200), and the economic occupancy rate was 91.3% (89.5) during the year. Rental value per sq.m. Net operating income before depreciation was SEK 761 mil- Office/ Warehouse/ lion (686), equivalent to a yield of 8.3% (8.1). After deprecia- SEK/sq.m. Retail Industrial Residential Total tion of SEK 135 million (126), the net operating income from Greater Gothenburg 904 474 851 660 property management was SEK 626 million (560). Öresund Region 887 464 811 681 Greater Stockholm 984 613 — 829 During the year, properties were disposed of for a total sales Western Småland 694 350 717 493 Mälardalen 723 526 807 657 price, after the deduction of expenses, of SEK 425 million Total 862 468 817 662 (571) at a profit of SEK 109 million (89). Comparison 1998 835 455 794 647 Central administrative expenses were SEK 55 million (57), Change % +3.2 +2.9 +2.9 +3.0* which includes SEK 8 million (11) for incentive scheme for * Weighted for distribution by property type on 31 December 1999, excl. development projects. senior management. As seen from the table, the rental value per sq.m. rose by Operating income before net financial items was SEK 680 3% during the year. The improvement is due to both in- million (592). Net financial items were SEK –271 million creased real rental levels, and rent increases on account of (–271), including interest subsidies of SEK 12 million (19). investments made, as well as acquisitions and sales within Due to tax losses carried forward, no tax expense arises in the respective property type. principle. Commercial leases, for which rents are paid quarterly in During 1999, properties were acquired for SEK 1,397 mil- advance, are signed for a certain period, which means that a lion (485), while investments of SEK 596 million (227) were change in market rents does not have a direct effect on made in existing properties. rental income. Rental levels can only be reviewed, when the respective lease is due for renegotiation. Commercial leases contain an index clause, providing for an upward adjustment of the rent, equivalent to a certain percentage of inflation during the previous year. Due to low inflation, no upward adjustment of the 1999 rents was made. The rental level for residential properties is renegotiated in principle each year with the respective tenants’ association. The rental levels of the local authority owned companies, which were mainly unchanged during the year, act as a benchmark in the negotiations.

41 D IRECTORS’ REPORT

Financial review 1999 EPORT R NNUAL A

ASTELLUM The lease expiry structure for Castellum’s commercial port- Occupancy rate C folio is seen from table below. Castellum’s economic occupancy rate was 91.3% (89.5) in 1998 . The increase in the occupancy rate was achieved Lease expiry structure on 31.12.1999 despite the fact that Castellum, in accordance with the com- No. of Area, Lease value, Percentage Primary use Term leases thous. sq.m. SEKm of value, % pany’s strategy, sold properties with a high occupancy rate, and acquired properties with a lower occupancy rate. The Commercial 2000 722 294 163 14 growth in the economic occupancy rate is shown below. 2001 1 036 442 297 26 2002 816 383 277 24 2003 412 251 195 17 Economic occupancy rate 2004 89 124 77 7 % 2005+ 85 186 145 12 96

Total 3 160 1 680 1 154 100 94 Residential 3 488251 198 Parking spaces and other 2 174 34 29 92 Total 8 822 1 965 1 381 90

88 In terms of value, 64 % of leases expire before the end of the year 2002. The average term of a new lease today is 86 3–5 years. 84 Castellum’s lease portfolio has a wide spread of risk. The 1996 1997 1998 1999 2000 2001 Group has 3,200 commercial leases and 3,500 residential tenancy agreements, whose spread in terms of size is seen The objective is to achieve an occupancy rate of 95% for from the table below. The commercial leases are also spread the existing portfolio within a two-year period. Due to the over many sectors, and the Group’s largest single lease strategy of disposing of mature, fully let properties, and accounts for less than 1% of the Group’s total rental income. acquiring properties with vacancies, future outcome figures are not directly comparable with the objective. Lease spread on 31.12.1999 As regards the commercial portfolio, gross leasing in Lease size, No. of Percentage, Lease value, Percentage, SEKm leases % SEKm % 1999 was 216,000 sq.m. (181,000), equivalent to SEK 143 < 0,25 2 116 24 194 14 million (114), while net leasing, i.e. gross leasing minus 0,25–0,5 507 6 179 13 terminated leases, was 78,000 sq.m. (38,000), equivalent 0,5–1,0 293 3 204 15 to SEK 66 million (43). 1,0–3,0 186 2 299 22 >3,0 58 1 278 20 Total Commercial 3 160 36 1 154 84 Real estate costs Residential 3 48839 198 14 Real estate costs were SEK 495 million (514) in 1999, equi- Parking spaces and other 2 174 25 29 2 valent to SEK 230/sq.m. (243). This amount includes both Total 8 822 100 1 381 100 direct real estate costs such as the costs of operation, maintenance, tenant improvements, ground rent and real estate tax, and indirect real estate costs in the form of leasing and property management costs.

42 D IRECTORS’ REPORT 1999 EPORT R NNUAL A

Operating expenses Real estate tax ASTELLUM Operating expenses include electricity, heating, water, facili- Group real estate tax was SEK 55 million (58) in 1999, C ties management, cleaning and insurance costs, rent losses, equivalent to SEK 27/sq.m. (28). Real estate tax is a state and property-specific marketing costs. In warehouse and tax based on the property’s tax assessment value. The industrial property, the tenants were responsible in many greater part of real estate tax is charged to the tenants. cases for the majority of operating costs. Operating expens- The tax rate for 1999 was 1.3% of the tax assessment es were SEK 234 million (244) in 1999, equivalent to SEK value for residential property, 1% for office/retail, and 108/sq.m. (118). Operating expenses, which are considered 0.5% for warehouse/industrial. to be at a normal level for the operations, are dependent on the weather, which means that they vary between both dif- Leasing and property management ferent years and quarters. The past year was overall milder The Group’s leasing and property management costs were than normal. SEK 82 million (83) in 1999, equivalent to SEK 37/sq.m. (40). Leasing and property management refers to the costs Maintenance of ongoing property management, comprising the costs of Maintenance costs consist of both periodic and ongoing leasing operations, rent negotiation, leases, rent debiting, measures to maintain the property’s standard and technical rent demands and accounting. systems. Maintenance costs for 1999 were SEK 82 million (84), equivalent to SEK 38/sq.m. (35). Maintenance costs Summary of real estate costs are considered to be at a long-term, stable level. Property-related costs per square metre, distributed by prop- In accordance with Castellum’s accounting principles, in erty type and cost category, are shown below. effect all expenditure on maintenance and tenant improvements is written off, when tax legislation allows. This nor- Real estate costs per sq.m. Office/ Warehouse/ mally means that only expenditure on value-enhancing mea- SEK/sq.m. Retail Industrial Residential Total sures, which alter the property’s function, building structure Operating expenses 137 66 179 108 or more permanent elements, is shown as an asset. Maintenance 44 22 83 38 Tenant improvements 24 8 1 13 Tenant improvements Ground rent 9 8 0 7 Real estate tax 41 10 48 27 Tenant improvements consist of the costs of the specific fitting out of premises for an individual tenant. An increasing Direct real estate costs 255 114 311 193 percentage of tenant improvements lead to increased rents. Leasing and The costs of tenant improvements were SEK 27 million (30) property administration — — — 37 in 1999, equivalent to SEK 13/sq.m. (14). Total 255 114 311 230

Comparison 1998 265 124 295 243 Ground rent Change % –3.8 –8.1 +5.4 –3.2* Ground rents including lease rent were SEK 15 million (15) * Weighted for distribution by property type on 31 December 1999, in 1999, and related mainly to Greater Stockholm. Ground excl. development projects. rent is the charge the owner of a building on local authority owned land pays annually to the local authority. Ground lease contracts are spread over a period, and are in most cases renegotiated at 10 to 20 year intervals. At the end of 1999, Castellum had some 50 properties with ground leases. Existing ground lease contracts expire with a relatively even spread over the next 15-year period.

43 D IRECTORS’ REPORT

Financial review 1999 EPORT R NNUAL A

ASTELLUM Net operating income before depreciation Depreciation C Net operating income before depreciation was SEK 761 mil- Castellum’s depreciation was SEK 135 million (126) in lion (686), equivalent to a yield of 8.3% (8.1). The fall in 1999. The depreciation rate by type of asset is shown in the fourth quarter of each year is due to seasonal variations Note 2. in operating expenses. In 2000, Castellum will adopt new depreciation princi- Yield ples, which are more in line with current practice in the real % estate industry. This means depreciation of 1% for buildings 10 and 20–33% of for equipment and computer equipment. If they had been applied during 1999, the new depreciation 9 8,6 principles would have resulted in SEK 46 million less depre- 8,3 8,3 8,3 8,0 8,1 8,1 ciation. 8 7,7 7,6 7,5 7,1 Property sales 6,8 7 6,7 Castellum’s strategy for growth includes acquiring properties with vacancies, and selling “mature” fully let properties, 6 to which no further value can be added by the management. In 1999, 35 (54) properties were sold for SEK 425 million 5 (571), at a profit of SEK 109 million (89). Of the properties Pro Jan– Jan– Jan– Jan– Jan– Jan– Jan– Jan– Jan– Jan– Jan– Jan– forma March June Sep Dec March June Sep Dec March June Sep Dec sold, 24 were residential properties disposed of for SEK 353 1996 1997 1998 1999 million, at a profit of SEK 86 million. The target is that annual profits from property sales shall total SEK 80–100 The net operating income shown in the account of the real million. estate portfolio differs from that shown in the income statement. The difference is due to the inclusion in the income Central administrative expenses statement of the properties’ net operating income for the Central administrative expenses for 1999 were SEK 55 mil- period they were owned during the year, while the above- lion (57). These include the costs of portfolio management, mentioned account covers those properties owned by company administration, and the costs of maintaining stock Castellum as at 31 December 1999. Properties acquired exchange listing. This involves all the costs of Castellum during the year have been restated as if they had been owned AB, comprising Group management, finance division, IT, for the whole year, while properties disposed of have been staff, investor relations, annual report, audit etc. excluded entirely. Remuneration to auditors, mostly KPMG, amounted to SEK Net operating income 3 million during the year, of which SEK 2 million was for auditing services. For the parent company, the equivalent Net operating SEKm Rental income income amounts were SEK 1 million and SEK 0 million. The sub- According to income statement 1 256 761 sidiaries’ accounts include the costs of their Managing + Acquisitions (restated on an annual basis) +120 +93 Director and financial manager and the costs of preparing – Sales (excluded entirely) –28 –19 the annual report, auditors’ fees etc. They also include provi- According to real estate schedule 1 348 835 sions for the share price-related incentive scheme of SEK 8 million (11). This item, which was previously reported under items distorting comparison, has been included in the central administrative expenses, which means that the rele- vant comparison figures and key ratios have been adjusted.

44 D IRECTORS’ REPORT 1999 EPORT R NNUAL A

Financial summary • In accordance with the financial policy, the refinancing ASTELLUM C Responsibility for the financial operations of the Group is risk is limited by Castellum’s loan maturity structure centralised to the parent company’s finance division. The requirement that at least 50 % of the Group’s loans shall finance division, which is the internal bank of the Group, is have a term of 2 years or more. responsible for borrowing money for the Group, cash mana- Castellum only owns properties in Sweden, and shall gement and financial risk management. therefore not be exposed to foreign exchange risk through Operations are carried out in accordance with the finan- financial transactions. cial policy adopted by the Board, which stipulates how financial risks should be managed and the mandate within Interest rate trend which the finance division is allowed to act. 1999 began with falling short interest rates. The international economic and inflation outlook has been dampened by Financial policy the Asian crisis and its aftermath. The Bank of Sweden The basis is that Castellum’s long-term financing require- lowered the short repo-rate from 3.40% to 2.90%, and the ments shall be secured at the lowest possible financing cost. European Central Bank (ECB) lowered its interest rate from At the same time, the Group’s financial risks shall be care- 3.0% to 2.5% during the spring. fully monitored and limited, in accordance with the finance Interest rate trend 1 January 1994 – 11 February 2000 policy. Financial risks mainly consist of interest rate risk and % refinancing risk. 14

The interest rate risk refers to the earnings impact in the 12 10-year government bond Group’s net financial items of a prolonged change in market 90-day treasure bills rates. Earnings sensitivity can, however, be limited through 10 the interest rate maturity structure. 8 An increase in the average fixed interest term thus results in a decrease in earnings sensitivity. The interest rate maturi- 6 ty structure shows when the earnings impact occurs, given 4 an assumed interest level on the maturity date. 2 • In accordance with the financial policy, the interest rate maturity structure shall be such that Castellum’s total 0 loans, including derivative instruments, have an average 1994 1995 1996 1997 1998 1999 fixed interest term in the range two to four years. In addi- The effects of the Asian crisis were subsequently found to tion, a maximum 40% of the total loan amount including be more limited than originally feared. The Swedish econo- derivative instruments shall have an interest rate maturity my enjoyed a strong recovery during the year. Domestic date within the next 12 months and a maximum 30% of demand grew strongly and there was an international econo- the total loan amount including derivative instruments mic upswing. These factors, in combination with rising shall have an interest rate maturity date within each 12- international prices, especially raw material prices, have month period thereafter. meant that the initial fears about deflation during the year The refinancing risk refers to the risk that financing is not were replaced by apprehension about rising inflation. available on the market, or that financing terms are for some This has led to a more stringent monetary policy during reason very unfavourable at a certain date. In order to limit the latter part of 1999 and the beginning of 2000. The Bank this risk, Castellum aims at all times to have mainly long- of Sweden has raised the short repo-rate twice, by a total of term credit agreements. 85 interest points to 3.75% and the ECB raised its short- term interest rate by a total of 75 interest points. In the

45 D IRECTORS’ REPORT

Financial review 1999 EPORT R NNUAL A

ASTELLUM USA, the Federal Reserve short-term interest rate was raised Interest rate maturity structure 31.12.1999 C in four stages by a total of 100 interest points to 5.75%. Average SEKm Loan amount Percentage, % interest rate, % Long-term Swedish treasury bill rates began to rise as early 2000, incl. liquidity 1 865 34 5.1 as the spring of 1999, and have then risen nearly 2 percenta- 2001 655 12 6.7 ge points from their lowest level. 2002 837 15 6.9 2003 862 15 5.8 Financial structure 2004 1 003 18 5.7 Castellum’s financing as at 31 December 1999 is seen from 2005 350 6 6.0 2006 2 0 6.9 the table below. Total 5 574 100 5.8

Financing as at 31 December 1999 As a result of falling market rates, the average interest SEKm Percentage, % rate in the loan portfolio is slightly higher than the equiva- Operating liabilities 875 8 lent refinancing rate as at 31 December 1999. The discount- Loans on real estate 5 670 54 ed value of this interest differential is SEK –8 million. In Shareholders’ equity 3 969 38 accordance with current accounting principles, no market Balance sheet total 10 514 100 valuation of the loan portfolio is made, however, in the Net interest-bearing items were SEK 5,574 million accounts, and the interest expense is spread over the remain- (4,665), after the deduction of liquid assets of SEK 96 ing term of each loan/interest swap. million (100). Loan maturity structure At the year-end, the item Other liabilities included SEK Castellum has long-term credit agreements totalling SEK 372 million for properties acquired but not taken possession 6,715 million (5,271). As at 31 December 1999, SEK 5,670 of, and the item Other receivables included SEK 18 million million (4,765) was utilised under the above credit agree- for properties sold but not relinquished. After possession, ments, representing unutilised credit of SEK 1,045 million the net account will add to the amount of interest-bearing (506). liabilities. The loan maturity structure below shows when the loan Castellum is financed under long-term credit agree- amounts under existing credit agreements fall due for ments/loan undertakings, where loans are mainly raised with renegotiation or repayment. short fixed interest terms. Interest swap agreements or other derivative instruments may be entered into, in order to Loan maturity structure extend the fixed interest term of the loan portfolio. There is Loan amount Of which SEKm incl. repayment Percentage, % utilised, SEKm thus no direct link between the term of the credit agree- 2000, incl. liquidity 291 4 –7 ments and the fixed interest term of the loan portfolio. 2001 186 3 180 2002 13 0 13 Interest rate maturity structure 2003 12 0 12 The average interest rate in the loan portfolio was 5.8% 2004 13 0 13 2005 — — — (6.2) as at 31 December 1999, and the average fixed interest 2006 6 200 93 5 363 term was 2.3 years (2.5) on that date. The interest rate matu- Total 6 715 100 5 574 rity structure has largely been achieved by the extension of loans with short fixed interest terms through interest swap Castellum’s credit agreements have mainly been signed by agreements and collars with a nominal base value of SEK the parent company Castellum AB. During the year, two 3,385 million and SEK 300 million respectively. new credit agreements have been signed, for a total of SEK 6,200 million, and replace previous credit agreements totalling more than SEK 5,100 million. The new credit agreements have been signed with Nordbanken and Stadshypotek/Svenska Handelsbanken, both giving Castellum the right to 7 years’ credit. 46 D IRECTORS’ REPORT 1999 EPORT R NNUAL A

Castellum AB raises loans under credit agreements, and in Tax loss carryforwards ASTELLUM turn lends to the property-owning subsidiaries. All credit Tax loss carryforwards were estimated to total SEK 1,660 C agreements are long-term, and entitle Castellum to choose million (2,000) as at 31 December 1999. both short and long fixed interest. As collateral for the Castellum’s tax loss carryforwards are mainly in the sub- agreements, Castellum AB has provided pledges on the sidiaries, and they can therefore be affected by sales of company’s receivables from subsidiaries, including pledged shares in subsidiaries. On a change of ownership, involving property mortgages. The long-term credit agreements can be one or more owners jointly acquiring more than 50% of vot- used without needing to pledge the company’s receivables ing rights, and each of these acquiring at least 5% of voting from subsidiaries, up to a limit of SEK 500 million. The rights, the opportunities for utilising tax loss carryforwards loan agreements contain special clauses relating to parti- could be restricted. cular undertakings, including interest coverage ratio and equity/assets ratio, in addition to the usual notice clauses. Overvaluation and undervaluation of fixed assets for Castellum can increase or decrease the allocation under tax purposes the long-term credit agreements. The aim is to minimise When the tax effect of property sales in the Group is calcu- interest-bearing liabilities, and cash is therefore primarily lated, the book value in the Group of SEK 10,242 million used to repay outstanding debt under the credit agreements. shall be balanced against the residual value for tax purposes in each legal entity which totals SEK 9,760 million. The sur- Interest subsidies plus value of shares in properties owned by partnerships and Interest subsidies for 1999 were SEK 12 million (19). The limited partnerships, amounting to SEK 250 million, must amount of future interest subsidies is mainly determined by be considered. When these surplus values are taken into the annual increase in the guaranteed interest rate, and the consideration, if all of Castellum’s real estate was sold, the level of the interest subsidy rate. Interest subsidies for the taxable net profit would exceed the reported profit in the years 2000–2002 are estimated to fall to SEK 4 million, Group by SEK 230 million. SEK 3 million and SEK 2 million respectively. Depreciation on real estate is taken at the maximum per- mitted amount for taxation purposes. Net financial items Net financial items were SEK –271 million (–271), of As regards shares and participations, the total acquisition which interest subsidies were SEK 12 million (19). A higher value for tax purposes exceeds the total book value. If volume of loans and reduced interest subsidies have been shares in a subsidiary are sold for a price less than the counteracted by a lower average interest in the loan port- shares’ acquisition value for tax purposes, the deduction for folio. During the year, the average interest expense was the loss can, according to current practice, be reduced by 5.8% (6.3) of net interest-bearing liabilities. dividends, group contributions and any other value transfers received from subsidiaries. As a precaution, no deferred tax Tax situation asset for this item is therefore shown. Due to considerable tax loss carryforwards, no tax expense In a real estate management company, properties, like relating to the net income for the year arises in principle. holdings of shares and participations, are regarded as fixed The Castellum Group includes both companies regarded assets. In these companies, a tax deduction for a possible under tax legislation as property management companies, write-down cannot be obtained before the loss has been and companies regarded under tax legislation as property realised, such as on the external sale of a property. In prop- trading companies. If a property management company is erty trading companies, the above-mentioned assets are owned by a property trading company, there are restrictions regarded under tax legislation as current assets. This means on the owner receiving tax-free dividends and Group contri- that a tax deduction is obtained on write-down, based on a butions. As a result of the restructuring measures taken, valuation according to the lowest value principle. In these negative effects have been eliminated in principle. Castellum’s case, write-downs for which deductions have been received total SEK 720 million for properties, and SEK 80 million for shares and participation.

47 D IRECTORS’ REPORT

Financial review 1999 EPORT R NNUAL A

ASTELLUM The Group’s deferred tax assets are summarised in the table Opportunities and risks C below. Rental value and economic occupancy rate Deferred tax assets The value of Castellum’s properties is affected by the rental SEKm Basis 28 % tax levels and occupancy rates which can be achieved, as is the Deferred tax asset Group profits and cash flow. for tax loss carryforwards 1 660 465 Deferred tax liability for the difference Both the rental levels and the economic occupancy rates between properties’ residual values of for commercial leases have changed in a positive direc- for book purposes and tax purposes –230 –64 tion, which is mostly due to growth in the Swedish economy. Deferred tax liability for eliminated Another contributory factor is the low rate of construction untaxed reserves 0 0 throughout the 1990s. Total 1 430401 Since commercial leases have a fixed term, a change in The table above shows that deferred tax assets exceed market rents does not have any immediate effect on rental deferred tax liabilities, so no reservation for deferred tax income. Castellum’s existing lease maturity structure, liabilities needs to be made. together with the size and sector spread of the lease port- The Swedish Financial Accounting Standards Council has folio, gives a good spread of risk exposure. issued a recommendation for accounting of income tax, RR:9. This recommendation briefly means that deferred tax Real estate costs liabilities and deferred tax assets should be included in the Castellum’s real estate portfolio has a good standard and accounts and that changes in these during the year should maintenance situation, which means that the Group’s main- affect the income statement. The recommendation comes tenance costs are in line with levels regarded as being justi- into force from the financial year commencing 1 January fied in the long term. 2001. Work continues, of course, to improve cost effectiveness, Application of this recommendation for 1999 would have such as by increasing the efficiency of water and energy the effect that SEK 401 million would have been reported as consumption. deferred tax assets and would increase equity, whereas the income statement would be charged with deferred tax liabil- Interest levels ities of SEK 115 million, equivalent to 28% of the net Interest expenses are the largest single cost item in income. Castellum’s income statement. A direct change of +/– 1 percentage point in Castellum’s borrowing rate would Cash flow mean that net interest expenses would change by about SEK –/+ 56 million. In order to reduce this effect, the Cash flow including profits from property sales in 1999 interest rate maturity structure has been spread over different amounted to SEK 555 million (452) and excluding profits terms. A change in market interest rates of +/– 1 percentage from property sales to SEK 446 million (363). points on loans with interest payable in 2000 would only have an estimated earnings impact of –/+ SEK 17 million.

48 D IRECTORS’ REPORT 1999 EPORT R NNUAL A

One of the most important single factors affecting market ASTELLUM interest rates is expected inflation. An interest rate rise cau- C sed by inflation is counteracted by higher rental income, since the majority of the commercial leases are linked to changes in the consumer price index, via a so-called index clause. The correlation between interest rate and inflation is not very precise, so the so-called real rate of interest, i.e. the difference between the nominal interest rate and inflation varies over time. If the real interest rate falls, this is normally to the advantage of real estate companies, and vice versa.

Taxation Castellum is affected by political decisions such as changes in corporate tax levels or real estate tax. Castellum has considerable loss carryforwards and is not expected to pay any income tax during the next few years. Future changes in the rules for income taxation could affect Castellum’s tax position both positively and negatively. The table below shows how Castellum’s earnings are affected, given the current real estate portfolio and financial position.

Sensitivity analysis Earnings impact Change for 2000,SEKm Rental income Residential properties +/– 1 % +/– 2 Commercial premises +/– 1 % +/– 11 Economic occupancy level +/– 1 percentage point +/– 15 Real estate costs +/– 1 % –/+ 5 Net financial items including interest subsidies Market rate +/– 1 percentage point –/+ 17 Loan costs +/– 1 percentage point –/+ 56

Real estate values The value of a property mainly depends on the expected net operating income and the required yield. For a more detailed description of the impact of various factors on the value of the real estate portfolio, please refer to the Valuation Model on page 36. Castellum’s properties are insured at their full value.

49 D IRECTORS’ REPORT

1999 Annual and Quarterly Summary EPORT R

NNUAL 1999 1996 A SEKm 1999 4th quarter 3rd quarter 2nd quarter 1st quarter 1998 1997 Pro forma INCOME STATEMENT

ASTELLUM Rental income 1 256 328 315 306 307 1 200 1 131 1 108 C Operating expenses –234 –69 –42 –50 –73 –244 –255 –254 Maintenance –82 –27 –17 –21 –17 –84 –97 –115 Tenant improvements –27 –11 –4 –6 –6 –30 –32 –52 Ground rent –15 –3 –4 –4 –4 –15 –15 –15 Real estate tax –55 –14 –14 –13 –14 –58 –52 –45 Leasing and property administration –82 –24 –17 –21 –20 –83 –79 –90 Net operating income before depreciation 761 180 217 191 173 686 601 537

Depreciation –135 –35 –34 –34 –32 –126 –119 –117 Central administrative expenses –55 –14 –13 –14 –14 –57 –62 –54 Interest subsidies 12 2 3 3 4 19 45 64 Net financial expenses –283 –75 –71 –69 –68 –290 –279 * Income from property management 300 58 102 77 63 232 186 *

Sale of real estate Net sales proceeds 425 14 95 18 298 571 389 — Book value –316 –12 –71 –18 –215 –482 –325 — Income/loss from property sales 109 2 24 0 83 89 64 —

Tax — ————–1—— Net income for the period 409 60 126 77 146 320 250 *

BALANCE SHEET Assets Real estate 10 242 10 242 9 304 9 168 8 886 8 695 8 586 8 158 Other fixed assets 61 61 65 65 66 71 22 16 Current receivables 115 115 154 73 159 168 59 85 Cash and bank 96 96 124 121 121 100 116 125 Total assets 10 514 10 514 9 647 9 427 9 232 9 034 8 783 8 384

Shareholders’ equity and liabilities Shareholders’ equity 3 969 3 969 3 909 3 783 3 706 3 735 3 553 3 303 Interest-bearing liabilities 5 670 5 670 5 097 4 928 4 698 4 765 4 795 4 588 Non-interest-bearing liabilities 875 875 641 716 828 534 435 493 Total shareholders’ equity and liabilities 10 514 10 514 9 647 9 427 9 232 9 034 8 783 8 384

* Not stated in pro forma accounts.

50 D IRECTORS’ REPORT

Key Ratios 1999 EPORT R

1996 NNUAL A 1999 1998 1997 Pro forma Property-related ratios Rental value, SEK/sq.m. 662 647 630 629 ASTELLUM

Economic occupancy rate, % 91.3 89.5 88.7 86.7 C Real estate costs SEK/sq.m. 230 243 256 279 Net operating income before depreciation SEK/sq.m. 374 337 302 266 Yield, % Excl. leasing and property administration 9.1 9.1 8.4 7.8 Incl. leasing and property administration 8.3 8.1 7.5 6.7 Book value (excl. land), SEK/sq.m. 4 525 4 148 4 029 4 000 Number of properties 565 557 583 582 Lettable area, thous. sq.m. 2 232 2 072 2 106 2 019 Average number of employees 182 186 201 214

Financial ratios Cash flow incl. capital gain from property sales, SEKm 555 452 369 * Cash flow excl. capital gain from property sales, SEKm 446 363 305 * Property investments, SEKm 1 993 712 867 * Interest coverage ratio, % 251 218 207 * Borrowing ratio, % 55 55 56 56 Equity/assets ratio, % 38 41 40 39 Return on equity, % 10.6 8.8 7.3 * Return on total capital, % 7.0 6.6 5.7 *

Data per share (50,000,000 shares) Earnings after tax, SEK 8.18 6.40 5.00 * Earnings after tax with adjustment for property sales, SEK 6.00 4.62 3.72 * Cash flow incl. capital gain from property sales, SEK 11.10 9.04 7.38 * Cash flow excl. capital gain from property sales, SEK 8.92 7.26 6.10 * Dividend (1999: proposed), SEK 4.50 3.50 2.75 — Shareholders’ equity, SEK 79.38 74.70 71.05 66.05 Book value of real estate, SEK 204.84 173.90 171.72 162.29

* Not stated in pro forma accounts

Income from property management, SEKm Rolling annual value, SEKm 140 350

120 300 Income from property management Rolling annual value 100 250

80 200

60 150

40 100

20 50

0 0 Q 1 Q 2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q 2 Q3 Q4

1997 1998 1999

51 C ASTELLUM A NNUAL R EPORT 1999 a 1——— — 14 — — 578 — –1 –3 –37 250 — 45 –45 — –36 320 0 –42 19 409 — 484 –325 — 12 — –62 — –482 592 — — — 64 — –57 9 9 Net incomefor theyear 1998 — –316 — 680 Tax — –55 89 — 1999 7 –52 7 –15 Financial expenses — Financial income –97 Interest subsidies 109 Financial items –58 –15 –32 1997 –79 Operating income/loss –84 601 expenses administrative Central 1131 –255 –55 –15 –30 Income/loss from property sales 1998 –83 Book value –82 1200 686 –244 –27 1999 –82 1256 –234 761 Depreciation incomebefore depreciation Net operating administration Leasing andproperty Real estatetax Ground rent Tenant improvements Maintenance expenses Operating Rental income SEKm noels fe e iaca tm 0 2 5 7 14 3 578 — 250 321 389 409 571 Income/loss afternetfinancialitems 425 Net salesproceeds Sale ofrealestate/shares Net operatingincomefrom 52 rpryamnsrto 2 6 8 8 6 482 560 626 property administration Note 4 Note 3 Note 2 Note 1 Income Statement 15–2 19– –1 –1 –119 –126 –135 28–9 21–8 –277 –281 –281 –291 –288 9 328 895 2 1 5 ru Parent Company Group Liabilities ogtr eevbe,gopcmais———6294939 6269 — — — participations Other long-term groupcompanies receivables, Long-term ingroupcompanies Participations Financial fixed assets Total tangible fixed assets oa iblte 2 7 0 8 4492 5489 5204 5276 6523 Total liabilities hr aia 0 0 0 0 100 2988 100 20 2752 20 100 91 3183 7614 93 100 1 85 20 — 3295 8939 88 100 440 3 20 1 — 116 8783 1 175 9034 20 100 12 2 25 10514 268 — 96 11 7521 145 211 22 — 8851 reserves Non-restricted 94 5 equity Non-restricted 12 reserve reserves/Legal Restricted 8608 Share capital 7 equity Restricted 8766 Shareholders’ equity 16 SHAREHOLDERS’ EQUITY AND LIABILITIES 24 10303 Total assets Total current assets 14 Cash andbank 31.12.1998 Total receivables current 31.12.1999 income Prepaid expensesandaccrued Other receivables 31.12.1997 Rent receivables 31.12.1998 receivables Current Current assets 31.12.1999 Total fixed assets Total financialfixed assets receivables Other long-term Equipment Real estate Tangible fixed assets Fixed assets ASSETS SEKm a iblt 71 901 — 0 2 1 2 15 39 32 4368 17 18 7614 85 147 5363 14 8939 17 — 395 82 4795 578 8783 — 4765 3122 158 9034 3450 5670 250 — 10514 Contingent liabilities 3553 320 Pledged assets Total shareholders’ equityandliabilities 3735 409 3969 expensesandprepaidincome Accrued Other liabilities Tax liability groupcompanies Other liabilities, Accounts payable Loans onrealestate Provisions Total shareholders’ equity Net incomefor theyear Balance Sheet Note 14 Note 13 Note 12 Note 11 Note 10 Note 9 Note 8 Note 7 Note 6 Note 5 022865856—— — 8586 8695 10 242 02587886022 2 8600 8708 10 255 3 1 5 4 6459 5943 7755 8011 6 635 8 6 5 0 106 106 253 264 283 1 6 932 3 59 168 115 22 6—— — 26 23 22 43 434 34 2546 2 2546 1 2 — 34 — 14 34 — 13 13 85 4 7519 8849 8 58 48 1 11 110 ru Parent Company Group 53

C ASTELLUM A NNUAL R EPORT 1999 C ASTELLUM A NNUAL R EPORT 1999 54 hnei ahadbn 4–6– 618 73 91 –6 58 91 105 85 — –32 –138 –9 995 –1330 125 — — 116 –1 –7 — –250 3 –16 –7 207 116 100 — 579 389 –4 25 — — –4 andthenet oftheGroupwaschanged, thecapitalandintereststructure –17 tothecompany’s –11 * Prior stockexchangelistingin1997, –30 96 100 58 571 –209 balancecarried forward –867 Cash andbank, –37 580 balancebroughtforward — Cash andbank, –138 10 905 –32 184 425 –712 626 Change incashandbank –5 273 Dividend –175 –1 –1 1997 Change inreceivables/liabilities atsales –1112 –1993 receivables Change inlong-term –234 liabilities Change inlong-term 362 Financing — 1998 15 Cash flow afterinvestments –265 Other netinvestments 461 Real estatesales Real estateinvestments 1999 Investments –260 Cash flow before investments capital Change inworking Cash flow before change Tax paid Net financial itemspaid depreciation income/lossexcl. Operating Operations SEKm income statement is therefore stated for 1997. In addition, a group contribution received in1996hasbeen offsetagainstdividen agroupcontribution Inaddition, income statementistherefore statedfor 1997. n custoso rpris38–5——— — — –15 –36 368 –35 and acquisitionsofproperties 539 629 706 and realestatesales nwrigcptladivsmns4633355122 591 305 363 446 in working capital andinvestments Cash Flow Statement ru Parent Company Group * interestincome/expenseinthe ds totheparentcompany in1997. 991998 1999 oe oteFnnilSaeet n conigPrinciples Accounting and Statements Financial the to Notes oe5Realestate Note 5 Financialexpenses Note 4 Financialincome Note 3 Depreciation Note 2 Accountingprinciples Note 1 uligeupet — — — — — — 4 14 7186 18 22 6 7324 259 13 1 8651 20 267 8 — 0 280 — 2 Land improvements 288 Building equipments Buildings — Schedule ofbookvalue 284 1 — — internal 5 Interest expenses, external Interest expenses, — — — external Interest income, 1 107 5 Anticipated dividend 1 117 3 127 1 2 Land improvements Building equipments Buildings previous year. areunchangedcomparedwiththe accountingprinciples amounts atwhichtheyareexpectedtobereceived.The beenshown atthe afterindividualvaluation, Receivables have, are noreceivables andliabilitiesinforeign currency. ownership. of incomehasonly beenconsolidatedfor theperiod ofthefinancial year, Forcompaniesowned part analysis. accordancewithapreparedacquisition in means thatassetsandliabilitieshave value, beenshown attheirmarket which solidated financial statementshave beenpreparedinaccordance withtheacquisitionaccountingmethod, con- holdsmorethanhalfofthevoting rights.The directly orindirectly, companies inwhichtheparentcompany, consolidatedincomestatementandbalancesheetinclude all es and associatedcompanieslistedinNote7.The thesubsidiari- theGroupcomprises Inadditiontotheparentcompany, Swedish Financial Accounting StandardsCouncil. The consolidatedfinancial statementshave beenpreparedinaccordance withRecommendationRR1:96ofthe ad153133132—— — — 277 — 1382 0 281 328 8586 1343 1 8695 281 1563 895 10242 291 2 327 1 288 320 1 3 Total bookvalue Land — 5 4 1 1 — 1 Total 1 Other financial expenses — 119 6 Total internal Interest income, 126 5 135 5 has beentaken atthefollowing rates: whichisbasedontheacquisitionvalueafteradeductionfor subsequentwrite-downs, Depreciation, Total Equipment rmsbiire 7 — 575 — — — from subsidiaries unlessotherwisestatedbelow.There provisions andliabilitieshave beenvaluedattheiracquisitionvalue, Assets, adipoeet 5.0% 20.0% Land improvements Building equipments Buildings: Equipment 20.0 % eieta 1.0% 1.5% 2.0% residential warehouse/industrial office/retail (All amountsinSEKmunlessotherwisestated) 9919 9719 1998 1999 1997 1998 1999 ru Parent Company Group — 55

C ASTELLUM A NNUAL R EPORT 1999 C ASTELLUM A NNUAL R EPORT 1999 oe6Equipment Note 6 Note 5cont. 56 ucae 1 1 4 7 5 5 30 6 32 32 Purchases Opening acquisitionvalue — — — — 757 — 111 485 — 227 1397 596 9935 10427 10419 Acquisitions Investments Opening acquisitionvalue Schedule ofchangefor theyear okvle1 31 2 0 2 1 0 –3 –1 14 –2 4 5 –3 –1 –1 13 –3 4 5 –18 –5 –6 13 –16 –19 –5 4 32 –5 –18 –20 –5 32 –5 –19 33 Book value Closing depreciation — Depreciation for theyear Sales Opening depreciation — Closing acquisitionvalue — Sales — — — — 922 — — — — 5355 939 tospecialconditions. unlessthisiscontrary — date, at thecontract isenteredas thetransaction 4 orcompanies, andsellingproperties — acquiring assets.When are regardedascurrent — even thoughundertaxlegislationthey aretherefore shown inthe accountsasfixed assets, andtheproperties 557 lio, 6277 5 viewofitsrealestateportfo- Grouptakes along-term andstandard.The condition — use, — dependingonlocation, erty, 1035 8586 basedonthepresentvalueoffuturecashflows withadifferentiated requiredyieldfor eachprop- — valuation model, — cashflow-based isalong-term The Group’s bookvalueshave valuationmodel.This beenadjustedusinganinternal 496 6046 — 201 6 46 — legislation allows. 8695 — totheextentthattax off, measuresareotherwisewritten — allproperty Inprinciple, measure isshown asanasset. value-enhancing thecorresponding orby by awrite-down, adeductionfromtheacquisitionprice into account, — –1247 7081 11 ment projects.To theextentthatneglectedmaintenanceor otherfuturecostshave — beenidentified andtaken — 10242 37 extensionandrefurbish- inthecaseofmajornewconstruction, period the construction interest expensesduring –594 andof withtheadditionofvalue-enhancinginvestments, –1251 –1046 Real estatehasbeenshown atitsacquisitionvalue, –376 –114 Total — taxassessmentvalue –678 18 –1247 –1035 –526 Land –720 Buildings –121 –1046 Schedule oftaxassessmentvalue –790 –594 10427 –345 Book value –130 Closing write-downs –678 10419 Sales Opening write-downs 12067 Closing depreciation Depreciation for theyear Sales Opening depreciation Closing acquisitionvalue Sales fwihcptlzditrs xess72 7 of whichcapitalized interestexpenses Notes totheFinancial Statementsand Accounting Principles 9919 9719 1998 1999 1997 1998 1999 9919 9719 1998 1999 1997 1998 1999 ru Parent Company Group ru Parent Company Group ——— oe7Participations ingroup companies Note 7 oe9Shareholders’ equity Note 9 Otherparticipations Note 8 pnn custo au 4 4651 4648 — — — Opening acquisitionvalue iied——–7 — –175 320 –320 3295 320 — 34 20 — 49.7 — 100 — Dividend ofprofits Appropriation Opening amount Group regarded asacapitalinvestment. andis 342,000 preference shares(15%dividend)withanominalvalueofSEK100each, The holdingcomprises Intressenter Älvkraft AB iied——–7 — 578 578 — –175 2752 14 –14 — –75 409 14 2988 409 — 20 3440 — — — 20 — — 100 20 — value ofSEK2pershare. — withonevote pershare andanominal The sharecapitalasat31December 1999consistedof50,000,000shares, — 100 — Closing amount Net incomefor theyear 100 Dividend Group contribution ofprofits Appropriation — Opening amount 13 Parent company Closing amount Net incomefor theyear 609 0 100 359 290 100 607 294 100 100 Gothenburg 100 374 2546 100 –3 556461-8881 100 2546 100 Malmö Gothenburg Mölndal –2102 Värnamo — 102 — –2 Gothenburg 556476-7688 556571-4051 –2102 556051-0561 556226-6527 4648 Total bookvalue –2102 Örebro Stockholm Regeringsgatan Fastighets AB 556122-3768 — — — CFS AB 4648 Briggen Fastighets AB — 556121-9089 556002-8952 Corallen Fastighets AB Sjögren AB Harry — — — Eklandia Fastighets — AB Aspholmen Fastigheter AB — Brostaden Fastighets AB — — — — annual report.) (Othergroupcompaniesareseenfromtherespective subsidiary’s Schedule ofdirectly owned subsidiaries. — Book value Closing write-downs Opening write-downs Closing acquisitionvalue Sales aia eevsrsre for year reserves reserves capital Share Restricted Non-restricted Non-restricted Share Restricted Net income dniyn.ofc oigrgt,%value % voting rights, office identity no. Registered Corporate Percentage of Book 9919 9719 1998 1999 1997 1998 1999 ru Parent Company Group ecnaeo oigrgt,%Bookvalue % Percentage ofvoting rights, 2 546 57

C ASTELLUM A NNUAL R EPORT 1999 C ASTELLUM A NNUAL R EPORT 1999 oe1 Contingent liabilities Note 14 Pledged assets Note 13 Accruedexpenses and Note 12 Liabilities Note 11 Provisions Note 10 Note 9cont. 58 te otnetlaiiis11011 1 0 — 1 4789 — 5909 1 5604 — 5672 — Other contingentliabilities 6507 — groupcompanies receivables, Long-term 124 Shares andparticipations mortgages Property 126 409 — 511 — — — 853 — — — 13 liabilitiesdue morethan Interest-bearing — liabilitiesdue within Interest-bearing 7 Other liabilities 15 liabilitiesdue within Interest-bearing — 4 17 3 tax Deferred Provisions for tax Provisions for pensionsetc. Growth ofshare capital cre neet9 37 280 — 92 — 77 103 83 113 94 133 interest Accrued Rent paidinadvance 0Mrh19 hr pi 01—1000005 0 0 2 100 SEK pershare, 100 ofshares No. 50000 SEK 500 capital, 100000 — 1000 SEK capital, 50000 100000 99950000 — Transaction Sharesplit50:1 Newshareissue 20 March1997 Company formation 15 June1994 24 September1993 Date te 53 434 34 6459 1 26 5943 35 14 7755 35 011 8 73 6635 68 56 Total pledgedassets Other 4492 4368 5489 5363 5204 Total expenses accrued 4795 Other 5276 — — 4 765 6523 5670 — — agreementsenteredintoismadeintheaccounts. valuationofderivative nomarket Consequently, remaining terms. Cashflows over undertheseagreementsareperiodized the accordancewithagreedfinancial in policy. portfolio, oftheloan maturity inordertospreadtheinterestrate agreements, Castellum hasenteredintointerestderivative 26 6 Of whichinterest-bearing Total liabilities 23 4 22 2 on page47. Seealsotheaccountoftaxsituation inthe consolidatedbalancesheet. reserves allocated infulltorestricted oftheindividualcompanieshave theuntaxed been reserves Consequently, taxliability. exceed thedeferred to lossesareestimated taxassetsduetopreviousoperating asdeferred taxliabilityisnotaccountedfor, Deferred Total provisions Other provisions in group companies 93 2 304 2 150 — 1 636 1 — 2150 2304 93 in groupcompanies 333 3 035 1 — — 1486 69 3570 1195 218 89 aftertheyear-end 1–5 years 1 year aftertheyear-end n rpi noe23242316106 106 253 264 283 and prepaidincome prepaid income er fe h ered533—320533— 5363 240 3 — 5363 aftertheyear-end 5 years Notes totheFinancial Statementsand Accounting Principles 9919 9719 1998 1999 1997 1998 1999 nraei hr Ttlsae Nominalamount Total share Increase inshare ru Parent Company Group oe1 Staff Note 15 or,COadDpt E 4781 4 10 8 7 14 CEOandDeputy Board, Salaries andremuneration Average number ofemployees te mlye 42 533 5 3 2 8 least halftheamountofbonus due–afterdeductionofstandardtax. toacquireCastellumsharesfor at Executives inreceiptofabonus undertake 6 thefollowing month. paid assalary aftertheendofMay 2002andis bonus isdetermined shareprice-related adoption ofthefinancial statements.The annually afterthe profit-based bonus ispaidassalary trendoverCastellum shareprice athree-year period.The isbasedonthe isbased oneachyear’s profit andtheotherpart Onepart 5 incentive schemeconsistsoftwo parts. 25 10 30 from 1July 1999for theseniorexecutives ofCastellum ofthesubsidiaries.The AB andthemanagingdirectors 6 isreceived orremuneration fromotheremployment. with adeductionifsalary mum oftwo years, for ispayable amaxi- tothesepersons salary Ifnoticeofdismissalisgiven by thecompany, pensionplan. general 23 5 16 28 56 isreceived orremuneration fromotheremployment. withadeductionifsalary salary, theCEOisentitledtotwo years’ Ifnoticeofdismissalisgiven by thecompany, maximum ofSEK100,000peryear. theCEOisentitled toexceedthetaxallowance by a addition, In 24 rule. accordance withtheso-calledalternative 32 5 in 64 whichthecompany isentitledtodeductfor taxpurposes, premiums may amounttothemaximum figure, 52 excludingtheCEOeachreceived SEK125,000. Directors received SEK250,000andtheother ofwhichtheChairman Fees ofSEK750,000were paidtotheBoard, 59 8 50 Total payroll overheads Other employees 64 CEOandDeputy Board, Payroll overheads Total andremuneration salaries Other employees ali wdn 8 8 0 515 15 201 186 182 (all inSweden) ic h rvosicnieshm iihdi ue19,anewthree-year incentive scheme wasintroducedas Since thepreviousincentive schemefinished inJune1999, ofa pensioncommitmentsareprovided withintheframework intheGroup, In thecaseofotherkey persons Pension andbenefits ofSEK2,080,000andabonus ofSEK3,360,000were paidtotheCEOin1999. Salary fwihcmiso n ou — 6 1 — 6 – ofwhichcommissionandbonus fwihpnincss98822 2 8 8 9 – ofwhichpensioncosts fwihpnincss32211 1 2 2 3 – ofwhichpensioncosts fwihwmn5 35 5 5 56 53 50 – ofwhichwomen 9919 9719 1998 1999 1997 1998 1999 ru Parent Company Group 59

C ASTELLUM A NNUAL R EPORT 1999 D IRECTORS’ REPORT

1999 Proposed Appropriation of Profits EPORT R NNUAL

A The Group As shown in the consolidated balance sheet, the Group’s profits amount to SEK 3 849 million. No transfer to restricted reserves is proposed ASTELLUM

C The parent company The following funds are at the disposal of the Annual General Meeting: Non-restricted reserves 2 752 311 875 SEK Net income for the year 578 348 938 SEK 3 330 660 813 SEK

The Board of Directors and the Chief Executive Officer propose that the profits be appropriated as follows:

Dividend to shareholders of SEK 4.50 per share. It should be noted that Castellum AB has made a public offer to the shareholders of Diligentia AB to sell their shares to Diligentia AB in exchange for one newly issued Castellum share for each Diligentia share. (The alternative cash offer is ignored at this point). This offer, which is conditional on the necessary decision emission a new share issue being made at the Castellum AB extraordinary general meeting, includes the condition that dividends shall be paid on the newly issued Castellum shares as from the financial year 1999. If all of Diligentia AB shareholders accept the offer, and the other conditions of the offer are met, the number of Castellum AB shares would increase from the current 50 000 000 shares to 112 709 163 shares. In this situation, the dividend would amount to SEK 507 191 233. If take-up is lower, the dividend would be reduced by a comparable amount. If the offer is rejected, the dividend will be SEK 225 000 000.

The funds which are not distributed as above will be carried forward.

Gothenburg, 22 February 2000

Jan Kvarnström Mats Israelsson Gunnar Larsson Chairman

Stig-Arne Larsson Göran Lindén Thomas Alexandersson Chief Executive Officer

The Auditors’ Report regarding this Annual Report was submitted on 22 February 2000

Ulf Egenäs Caj Nackstad Authorized Public Accountant Authorized Public Accountant

60 uhrzdPbi conatAuthorizedPublic Accountant CajNackstad Authorized Public Accountant Ulf Egenäs Gothenburg, 22February 2000 year.the ChiefExecutive bedischarged fromliabilityforthefinancial Officer and thattheDirectorsand appropriated inaccordancewiththeproposalDirectors´Report, the Parent Company oftheParent andfortheGroupbeadopted, Company be thattheprofit We recommendtothe Annual GeneralMeeting,thattheIncomeStatementandBalanceSheetfor Sweden. inaccordancewithgenerally positionandperformance, acceptedaccountingstandardsin financial with the Annual Accounts Act andgive view ofthecompany´s thereforeacorrect andtheGroup´s statementshaveThe beenpreparedinaccordance andtheconsolidatedfinancial Annual Report below. of Articles Association. We considerthatouraudit gives forthestatement usreasonable grounds acted incontravention oftheSwedish Companies Act, theSwedish Financial Statements Act orthe company. We have alsoexamined whether aDirectorortheChiefExecutive hasotherwise Officer order toassesswhether aDirectorortheChiefExecutive isliable topay Officer compensationtothe liability, we have decisions,measuresandcircumstancesinthecompany, examined important in ofourrecommendationfordischarge from statements.Insupport and theconsolidatedfinancial Board andtheChiefExecutive Officer, andevaluating theoverall inthe information Annual Report documents. An auditalsoincludesexamining theaccountingpoliciesandtheirapplicationby the examination ofaselectionevidence intheaccounting fortheamountsandotherinformation statementsdonotcontainmaterialerrors. An auditincludes andtheconsolidatedfinancial Report means thatwe outtheaudittoprovide plannedandcarried reasonable assurance thatthe Annual The auditwas conductedinaccordancewithgenerally acceptedauditingstandardsinSweden. This statementsandtheadministration onthebasisofouraudit. the consolidatedfinancial documents andtheadministration.Ourresponsibilityistoexpress anopiniononthe Annual Report, for theyear 1999. The BoardandtheChiefExecutive areresponsible fortheaccounting Officer and theadministrationofCastellum AB by theBoardofDirectorsandChiefExecutive Officer We have statements,theaccountingrecords, examined the theconsolidatedfinancial Annual Report, 556475-5550 corporate identityno. To the Annual GeneralMeetingofCastellum AB (publ), uios Report Auditors’ 61

C ASTELLUM A NNUAL R EPORT 1999 C ASTELLUM A NNUAL R EPORT 1999 62 Shareholdings: 5,000 Akademiska HusiLinköping AB. Statliga and Kungsleden AB Project AB,Forsen Holding AB, Israelsson Konsult AB. Otherassignments:DirectorofCivitas 1940.Directorsince1997.Owncompany,Born Mats Mats Israelsson Shareholdings: 0 and Alt-OptronicAB. Monark AB Sixth AP-fund,Ringnes AB, Pripps Systems AB,Pricer AB, Area 1944.Directorsince1999.Otherassignments: Directorof Born Göran Lindén Shareholdings: 6,500 Director ofChalmersfastigheter AB. ofFastighetsaktiebolagetassignments: Chairman Norrporten, 1945.Directorsince1994.CEOofCastellum Born AB. Other Thomas Alexandersson Shareholdings: 400 Director of Addum Intressenter AB, Cramo AB andNobelBiocare AB. since1994.CEOofEsselte Chairman AB. Otherassignments: 1948.ElectedtotheBoardin1994, oftheBoard.Born Chairman Jan Kvarnström unchanged tasks. Officer, HåkanHellströmwas appointedDeputyCEO, with new CEO. At thesametime,company’s ChiefFinancial Lars-Erik Jansson,DeputyCEOofCastellum AB tobethe meeting on22March2000,theBoardhave hasappointed his postaschiefexecutive attheannualgeneral officer Gösta Bystedt,who hadrefusedre-election. Lindén, Stockholmwas electedasanew directortoreplace andthebidforDiligentia. Officer matters, incentive changeofChiefExecutive agreements, projects, thecompany’s insurancesituation,millennium perty, investments inexisting property, new construction matters,acquisitionsandsalesofpro- strategies, financing plan,company-wideaccounts, thebusiness policies,overall meeting fordiscussionofthe wereAnnual Report held. addition, aninauguralmeetingandextraordinary Castellum’s meetingsin1999. In Boardheldsixordinary Since Thomas Alexandersson haddecidedtoresignfrom At theannualgeneralmeetingon24March1999,Göran Matters discussedby theBoardincludedannual The Board, SeniorExecutives and Auditors The Board’s activitiesin1999 Board ofdirectors Thomas Alexandersson Jan Kvarnström associated companies. Shareholdings include own holdingsandthoseofspouse, minors and The above information refers tothesituationon4February 2000. Shareholdings: 400 Mannheimer Swartling Advokatbyrå. totheBoardsince1994.Lawyer, 1949.Secretary Born Anders Wikström totheBoard Secretary Shareholdings: 500 Generic Systems AB. Telia IT-Service AB, Slottsbacken Venture CapitalandDirectorof 1943.Directorsince1997.Otherassignments:of Born Stig-Arne Larsson Shareholdings: 1,500 Gruppen ofGothenburgsoperan AB andDeputyChairman AB Systembolaget AB, IFKGothenburg and Tholin &Larsson 1940.Directorsince1996.Otherassignments:of Born Gunnar Larsson Mats Israelsson Gunnar Larsson Göran Lindén Stig-Arne Larsson Stig-Arne Anders Wikström Anders Lars-Erik Jansson Lars-Erik Shareholdings: 1,000 Treasurer ofCastellum AB. 1962.Employed Born since1994. Torbjörn Olsson Shareholdings: 1,600 1955.EmployedBorn since1994. Sjögren AB.Managing DirectorofHarry Christer Sundberg Shareholdings: 3,100 1937.EmployedBorn since1994. Managing Directorof Aspholmen Fastigheter AB. Jan Stridbeck Shareholdings: 1,886 1960.EmployedBorn since1994. Managing DirectorofFastighets AB Brostaden. Nils Pers Shareholdings: 3,600 1942.EmployedBorn since1994. Managing DirectorofFastighets AB Corallen. Göran Mårtensson Shareholdings: 3,100 1943.EmployedBorn since1996. Managing DirectorofFastighets AB Briggen. Johansson Bengt Arne Shareholdings: 2,500 1952.EmployedBorn since1994. Managing DirectorofEklandiaFastighets AB. Tage Christoffersson Jan Sundbom Other seniorexecutives Ulf Egenäs Thomas Alexandersson Håkan Hellström Caj Nackstad Göran Mårtensson Tage Christoffersson Nils Pers Shareholdings: 2,700 Technical Director. 1941.Employed Born since1994. Jan Sundbom Shareholdings: 5,500 investor 1956.Employed relations.Born since1994. andDeputyCEOwithresponsibilityfor Chief Financial Officer Håkan Hellström Shareholdings: 7,500 Deputy ChiefExecutive Officer.1945.Employed Born since1994. Lars-Erik Jansson Shareholdings: 6,500 Director ofChalmersfastigheter AB. ofFastighetsaktiebolagetassignments: Chairman Norrporten, Chief Executive Officer. 1945.Employed Born since1994.Other Thomas Alexandersson Sven Samuelsson Senior executives Deputy auditorforthecompany since1995. KPMG. Public Accountant 1940. Authorized Born Sven Samuelsson Deputy Company’s auditorsince1994. KPMG. Public Accountant 1945. Authorized Born Caj Nackstad Company’s auditorsince1994. Deloitte & Touche AB. Public Accountant 1938. Authorized Born Ulf Egenäs Jan Stridbeck Auditors Torbjörn Olsson Bengt Arne Johansson Bengt Arne 63 Christer Sundberg Christer

C ASTELLUM A NNUAL R EPORT 1999 1999 The Castellum Share EPORT R NNUAL

A Castellum AB has been listed on the Stockholm Stock Exchange Shareholders on 31 December 1999 O-list since 23 May 1997. The launch price was SEK 51. The Percentage of share price on 30 December 1999 was SEK 83, representing voting rights and a 63% rise on the launch price. During the same period, the Shareholders No. of shares capital, % ASTELLUM

C Stockholm Stock Exchange General Index rose by 88%, and Allmänna Pensionsfonden, Sjätte fondstyrelsen 8 092 800 16.2 the Carnegie Real Estate Index (CREX) by 30%. Allmänna Pensionsfonden, Fjärde fondstyrelsen 4 000 000 8.0 Försäkringsbolaget SPP Ömsesidigt 2 445 000 4.9 The Board proposes a dividend of SEK 4.50 per share, Skandinaviska Enskilda Banken 2 200 000 4.4 Handelsbankens Reavinstfond 1 400 000 2.8 equivalent to a 5.4% yield on the share price at the year-end. Livförsäkringsaktiebolaget Skandia 745 600 1.4 The dividend represents 55% of the net income for the year. Fastighets AB Josefina 325 900 0.7 Svenska Arbetsgivareföreningen 250 000 0.5 Share price trend and turnover during the year Fonden Zenit 248 800 0.5 S-E-B Fonder Småbolagsfond 230 100 0.5 The Castellum share price rose during the year from SEK 88 Carlson Småbolagsfond 210 000 0.4 to SEK 83 at the year-end, representing a 6% rise. Including the Handelsbankens Småbolagsfond 199 000 0.4 Schmitz, Rolf 180 000 0.4 dividend of SEK 3.50 paid during the year, the share consequ- Stiftelsen för Kunskaps och Kompetensutveckling 175 000 0.4 ently provided a total yield of –1.7%. During the same period, Riksbankens Jubileumsfond 168 100 0.3 the Stockholm Stock Exchange General Index rose by Roburs Miljöfond 166 000 0.3 66%, and the Carnegie Real Estate Index (CREX) by 19%. The Handelsbankens Aktiefond Index 153 700 0.3 Catella Reavinstfond 150 000 0.3 highest price paid for the Castellum share during the year, SEK Larona AB 125 000 0.2 88, was quoted on 18 February, and the lowest price paid, SEK Fastighets AB Kalvringen 100 000 0.2 66.50, was quoted on 15 October. The share price at the year- Sjöstrand, Peter 100 000 0.2 end corresponds to a market capitalization of SEK 4 150 milli- Sparfond c/o Föreningssparbanken 100 000 0.2 on. Total (22 shareholders) 21 765 000 43.5

During 1999, just over 28 million shares were traded, equiva- Shareholders registered abroad 21 052 057 42.1 Other shareholders 7 182 943 14.4 lent to 56% of the total number of shares in the company, and Total 50 000 000 100.0 on average 112 000 shares per day.

Share capital Share capital was SEK 100 million, distributed among Distribution of shareholders by country 50,000,000 shares with a nominal value of SEK 2 each. Each share entitles the holder to one vote, and carries an equal right Sweden 58 % USA 17 % to a share in Castellum’s assets and profits. Netherlands 12 % UK 9 % Shareholders Other 4 % At the year-end, the number of shareholders was just over 7,100. The largest Swedish shareholders were Sjätte AP-Fonden with a 16% holding, Fjärde AP-Fonden with 8%, and SPP with 5%. Distribution of shares At the year-end, 42% of shares were registered abroad. The Shareholdings, Total holdings Percentage No. of Percentage no. of and voting of voting share- share- foreign shareholders are mainly funds in the USA, the shares rights rights, % holders holders, % Netherlands and the UK. 1-500 1 257 204 2.5 4 885 68.3 501 - 1 000 1 018 075 2.0 1 149 16.1 The largest Swedish shareholders and the distribution of the 1 001 - 2 000 859 525 1.7 495 6.9 holdings in terms of size can be seen from the tables below. 2 001 - 5 000 1 251 283 2.5 344 4.8 In the case of shareholders registered abroad, no distinction 5 001 - 10 000 913 114 1.8 117 1.6 10 001 - 20 000 833 173 1.7 53 0.7 between directly held and nominee registered shares is made, 20 001 - 50 000 1 292 650 2.6 39 0.6 and they are therefore accounted for in one item. 50 001 - 100 000 2 225 851 4.5 28 0.4 100 001- 40 349 125 80.7 45 0.6 Total 50 000 000 100.0 7 155 100.0

64 1999 EPORT R

Data per share Investor relations NNUAL A Data per share (50,000,000 shares) 31.12.99 31.12.98 31.12.97 Castellum’s objective is to continuously provide frequent, open, Earnings after tax, SEK 8.18 6.40 5.00 and true and fair reporting on the company’s real estate portfo- Cash flow incl. capital gain lio, results and financial position to shareholders, the capital from property sales, SEK 11.10 9.04 7.38 ASTELLUM market and the media, but without disclosing individual business C Shareholders’ equity, SEK 79.38 74.70 71.05 Book value of real estate, SEK 204.84 173.90 171.72 relations. Dividend per share (1999: proposed), SEK 4.50 3.50 2.75 Closing share price, SEK 83 88 79 Investor relations are based on planned financial reporting in P/E ratio 10.1 13.8 15.8 the form of interim reports/press release on annual results. In P/CE ratio 7.5 9.7 10.7 addition, press releases are issued on major business transac- Yield of the share, % 5.4 4.0 3.5 tions or other news considered to be of interest to the stock market.

Swedish listed real estate companies During the year, a large number of presentations of The total market capitalization of solely real estate companies Castellum were made in meetings with investors and analysts, on the Stockholm Stock Exchange was about SEK 46 billion at and at investment meetings in cooperation with business jour- the year-end. The major solely real estate companies are seen nals, brokers or associations in Sweden and abroad. from the table below. Some fifteen Swedish and foreign analysts and brokers con- Market capitalization Market capitalization tinuously follow Castellum’s development and make analyses. SEKm 30.12.1998 SEKm 30.12.1998 Current financial information on Castellum is available on Drott 9 864 Piren 2 452 Hufvudstaden 4 986 Kungsleden 1 429 the company’s Website on the Internet at www.castellum.se. Diligentia 4 390 Diös 1 200 The Website contains interim reports and press releases, as well Castellum 4 150 Mandamus 1 089 as continuous updates of the real estate portfolio and share Tornet 3 483 Pandox 1 005 price. Wihlborgs 2 964 Norrporten 958 Balder 2 502 Wallenstam 855

Share price trend and turnover 23 May 1997–11 February 2000 SEK No. of shares 125 120 16 000 000 115 110 14 000 000 105 100 12 000 000 95 90 10 000 000 85 80 8 000 000 75 70 6 000 000 65 60 4 000 000 55 50 2 000 000 45 40 0 JuneSep. Dec. March June Sep. Dec. March June Sep. Dec. 1997 1998 1999 2000 Castellum share Carnegie Real Estate Index Stockholms Stock Exchange General Index Turnover per month

65 R EAL ESTATE PORTFOLIO

1999 Summary of Real Estate Portfolio The net operating income (excl. leasing and property administration costs) accounted for below relates to the EPORT properties owned by Castellum as at 31 December 1999. Properties acquired during the period have been R restated as if they had been owned for the whole year, while properties disposed of have been excluded entirely.

NNUAL Greater Öresunds Greater Western Comparison A Gothenburg Region Stockholm Småland Mälardalen Total 1998 1997 Office/Retail Number of properties 53 33 35 31 39 191 183 181 Book value, SEKm 1 451 1 269 1 271 449 728 5 168 4 207 4 068

ASTELLUM Area, thous.sq.m. 211 179 212 107 151 860 769 777 C

Rental value, SEKm 191 159 209 74 109 742 642 619 Economic occupancy rate, % 94.7 94.2 91.2 87.3 87.9 91.9 88.6 86.6 Rental income, SEKm 180 150 191 65 95 681 569 536 Operating expenses, maintenance etc., SEKm 48 42 71 26 32 219 204 221 Net operating income, SEKm 132 108 120 39 63 462 365 314 Yield, % 9.1 8.5 9.4 8.7 8.6 8.9 8.7 7.8

Book value, SEK/sq.m. 6 896 7 082 5 987 4 190 4 823 6 009 5 475 5 240 Rental value, SEK/sq.m. 904 887 984 694 723 862 835 797 Operating expenses, maintenance etc., SEK/sq.m. 227 232 334 240 221 255 265 284 Net operating income, SEK/sq.m. 629 604 563 365 414 537 475 406

Warehouse/Industrial Number of properties 79 34 32 40 20 205 180 168 Book value, SEKm 1 302 493 478 438 260 2 971 2 324 2 020 Area, thous.sq.m. 374 200 153 241 94 1 062 907 858

Rental value, SEKm 177 93 94 84 49 497 413 374 Economic occupancy rate, % 89.5 80.1 90.8 87.1 91.2 87.8 86.8 86.1 Rental income, SEKm 159 74 85 73 46 437 358 322 Operating expenses, maintenance etc., SEKm 44 23 30 13 11 121 111 104 Net operating income, SEKm 115 51 55 60 35 316 247 218 Yield, % 8.8 10.2 11.5 13.8 13.6 10.6 10.6 10.8

Book value, SEK/sq.m. 3 482 2 465 3 125 1 822 2 763 2 799 2 562 2 355 Rental value, SEK/sq.m. 474 464 613 350 526 468 455 436 Operating expenses, maintenance etc., SEK/sq.m. 117 119 197 54 104 114 124 121 Net operating income, SEK/sq.m. 307 253 360 251 376 298 272 254

Residential Number of properties 66 38 — 14 9 127 152 193 Book value, SEKm 793 504 — 222 89 1 608 1 926 2 280 Area, thous.sq.m. 123 83 — 37 16 259 333 404

Rental value, SEKm 105 67 — 26 13 211 264 314 Economic occupancy rate, % 98.4 96.8 — 97.0 93.1 97.4 97.1 95.6 Rental income, SEKm 103 65 — 26 12 206 257 300 Operating expenses, maintenance etc., SEKm 42 23 — 11 5 81 99 129 Net operating income, SEKm 61 42 — 15 7 125 158 171 Yield, % 7.7 8.3 — 6.9 8.0 7.8 8.2 7.5

Book value, SEK/sq.m. 6 432 6 099 — 6 033 5 565 6 215 5 784 5 638 Rental value, SEK/sq.m. 851 811 —- 717 807 817 794 776 Operating expenses, maintenance etc., SEK/sq.m. 341 280 — 282 308 311 295 318 Net operating income, SEK/sq.m. 497 504 — 414 444 484 476 424

Office/Retail Warehouse/Industry

Economic occupancy rate, % Yield, % Economic occupancy rate, % Yield, % 100 12 100 12

96 10 96 10

92 8 92 8

88 6 88 6

84 4 84 4 1997 1998 1999 1997 1998 1999

66 R EAL ESTATE PORTFOLIO 1999

Greater Öresunds Greater Western Comparison Gothenburg Region Stockholm Småland Mälardalen Total 1998 1997 EPORT R Development projects Number of properties 3 2 — 2 — 7 97 Book value, SEKm 105 131 — 116 — 352 136 118 Area thous.sq.m. 8 24 — 19 — 51 63 67 NNUAL A

Rental value, SEKm 0 12 — 15 — 27 21 19 Economic occupancy rate, % 98,3 82,7 — 97,6 — 90,7 76,7 90,8 Rental income, SEKm 0 10 — 14 — 24 16 17

Operating expenses, maintenance etc., SEKm 1 4 — 5 — 10 66ASTELLUM

Net operating income, SEKm –1 6 — 9 — 14 10 11 C Yield, % –0,6 4,9 — 6,8 — 3,9 7,7 8,9

Book value, SEK/sq.m. 13 277 5 361 — 6 037 — 6 825 2 149 1 771 Rental value, SEK/sq.m. 15 503 — 732 — 513 335 283 Operating expenses, maintenance etc., SEK/sq.m. 95 152 — 302 — 199 92 90 Net operating income, SEK/sq.m. -81 264 — 413 — 266 165 158

Total excluding undeveloped land etc. Number of properties 201 107 67 87 68 530 524 549 Book value, SEKm 3 651 2 397 1 749 1 225 1 077 10 099 8 593 8 486 Area, thous.sq.m. 716 486 365 404 261 2 232 2 072 2 106

Rental value, SEKm 473 331 303 199 171 1 477 1 340 1 326 Economic occupancy rate, % 93,6 90,3 91,1 89,2 89,2 91,3 89,5 88,7 Rental income, SEKm 442 299 276 178 153 1 348 1 200 1 175 Operating expenses, maintenance etc., SEKm 135 92 101 55 48 431 420 461 Net operating income, SEKm 307 207 175 123 105 917 780 714 Yield, % 8,4 8,6 10,0 10,0 9,7 9,1 9,1 8,4

Book value, SEK/sq.m. 5 102 4 929 4 789 3 033 4 127 4 525 4 148 4 029 Rental value, SEK/sq.m. 660 681 829 493 657 662 647 630 Operating expenses, maintenance etc., SEK/sq.m. 188 190 277 136 185 193 203 219 Net operating income, SEK/sq.m. 430 425 478 304 402 411 377 340

Undeveloped land etc. Number of properties 18 1 4 10 2 35 33 34 Book value, SEKm 50 31 57 3 2 143 102 100

Total Number of properties 219 108 71 97 70 565 557 583 Book value, SEKm 3 701 2 428 1 806 1 228 1 079 10 242 8 695 8 586

Comparison 1998 Book value Real estate excl. undeveloped land, etc SEKm 3 084 1 706 1 585 1 212 1 006 8 593 Undeveloped land etc, SEKm 42 1 55 3 1 102 Rental value, SEKm 441 261 277 200 161 1 340 Net operating income, SEKm 265 155 144 120 96 780

Comparison 1997 Book value Real estate excl. undeveloped land, etc SEKm 2 923 1 862 1 540 1 194 967 8 486 Undeveloped land etc, SEKm 42 0 53 4 1 100 Rental value, SEKm 423 278 268 202 155 1326 Net operating income, SEKm 242 152 118 116 86 714 Residential Total

Economic occupancy rate, % Yield, % Economic occupancy rate, % Yield, % 100 12 100 12

96 10 96 10

92 8 92 8

88 6 88 6

84 4 84 4 1997 1998 1999 1997 1998 1999

67 C ASTELLUM A NNUAL R EPORT 1999 aeo rpryAdesMncplt erOfc ealW Retail Office year Municipality Address Name ofProperty al :8 nriaa 1Knsak 90169—65———2341 8 HAR 10080 HAR 374 2 4917 — 360 2 — HAR EKL — 13038 4032 — 156 5 — * 663 2 HAR 68 HAR — — 7521 — 36751 685 HAR HAR 852 5 517 2 — 2862 — 2632 — 601 — — 575 642 1 — HAR — — 461 1689 — 439 — — 21577 HAR 158 372 4 HAR 460 HAR 1759 — — 11907 150 1991 278 1990 92928 34176 — 40 313 2282 HAR Kungsbacka 219 4 2148 21440 548 7 HAR HAR Kungälv — — — 14384 790 205 2716 1990 — — 67 1 HAR 55 7531 — — 10021 Kungsbacka 686 3 HAR 1958/1968 5245 953 2 — 720 1974/1993 1979 13000 732 243 — — 23091 — — * Kungsbacka 1123 — — — Alingsås — HAR 018 5 101 Kungälv 4927 1346 — 11 Energigatan 1970 — 10 011 297 1074 2082 — — 366 24 2 135 — — 090 5 — 1984 Kungälv Bilgatan20 — Sättarevägen 3 1249 — — L:a Verkstadsgatan 2 — — — 1992 1930 859 1 — 3012 Alingsås Total 193 — — 1988 1929/1987 Varla 2:380 — — 1225 1937/1982 gatan59 1940/1981 Västra Partille 483 Sveagatan 10 5424 — Kungsbacka 4:46 HAR Borås Trollhättevägen 10–12 — 552 Partille 700 4 HAR */B 1962/1991 261 1 Borås Hede 3:125 2–5 Kristineholmsvägen 38 408 15650 1465 Partille Partille 2360 — Stiftet 6 30098 — 541 7 — — 6803 836 1 74–76 Göteborgsvägen 36 Klocktornet 1147 EKL EKL 835 5 Borås EKL 82–84 Göteborgsvägen — Chauffören 7 1930/1979 EKL — — 1974 11397 7758 — 8300 78–80 Göteborgsvägen 1 692 323 1 Filaren 1 1990 6254 23482 658 2 B Stenbocksgatan20 1500 Byalaget 9 1930 4862 — Borås — 747 1 EKL G:aKronvägen 22 3182 Borås 640 EKL StBrogatan Ugglum 8:92 — — 190 Borås L:aBrogatan19–21 20018 Ugglum 8:91 306 — 1999 10653 1991 Borås EKL Ugglum 8:37 3767 — 013 5 4127 L:aBrogatan 15/St.Brogatan16 — — 4:25 Mölndal — 4:2, Mölndal Partille 1992 78982 — 55 — 1981/1999 — 1986 83 Renen 1 13387 EKL 17 Västerlånggatan 1150 258 33 3 5 Österlånggatan Mölndal Nestor 3 22 Katrinedalsgatan — — Mölndal 718 2 — Mölndal 4700 11758 — Nestor 2 878 — — — — 1701 — Narcissus 5 1 6/Bergfotsg Flöjelbergsg 805 341 1981 136 Midas 10&11 5513 293 1 34 Gothenburg — 755 Aminogatan25 1984/1991 — 1983 14 Katrinedal Gothenburg 20 Kråketorpsgatan Gothenburg 3117 StBrogatan — — — Apollo 5 — 124 — — Tusenskönan 1968/1990 2 92 Aminogatan16 710 1990 Gothenburg Gothenburg Riskullaverket 2 1853 3263 969 5511 Pottegården 4 992 — 905 1982 1180 Datavägen 14B 1 Mejramen Gothenburg 327 21 EKL Åvägen19 Stora 5 A–B, Generatorn 388 3741 715 1973 1984 Radiovägen 5 2429 40 Datavägen 6 Kobbegården 6:726 51 Gothenburg Gothenburg 6415 1984 7413 Gata AugustBarks Gothenburg E Kobbegården 6:362 A RosengrensGata15 EKL 1984 EKL 202 1 Gothenburg 1895/1986 Kobbegården 6:141 2523 29092 202 1988 Gothenburg 1992 1991 3 24349 Ånäsv44–46/Svang2–4/Ejderg Gothenburg 1988 166:6 Gothenburg Gothenburg Järnbrott — 71 136 4 Gothenburg 319 4 Högsbo 24:12 1425 — Högsbo 13:3 21–29 Säterigatan — 1900 276 3–5 Ringög12/Kolgruveg 5–7 Bergögatan — Gothenburg Olskroken 14:2 1900/1992 Gothenburg 16 152 Bergögatan Tingstadsvassen 11:11 469 10 Bergögatan — 89 StSigfridsgatan Sannegården 5:4 — 1929/1989 68 Herkulesgatan Gothenburg 733:254 Rambergsstaden 83 1930 — Brogatan4 Gothenburg Backa 27:43 — 19 Backa 27:40 259 3–4 Backa 27:24 Järntorget — 48 55 102 Vasagatan 1929 46 Skår 58:1 299 1856/1988 388 Gothenburg Gothenburg 3:8 7 Kungsportsavenyen Pustervik 1025 319 497 TeatergatanMasthugget 9:17 4 666 795 51 48:8 Lorensberg 1974 1991 Gothenburg 3348 Gothenburg 46:5 Lorensberg Badhusgatan30 Stora 3598 1063 18 1929 Larmgatan 46:1 Östra Lorensberg 1995 1929/1991 Gothenburg Gothenburg Gothenburg Inom 1929/1994 Vallgraven 46:2 1919 1929/1995 Gothenburg Gothenburg Gothenburg Inom Vallgraven 4:1 5/ Kaserntorget Vallg 2 Kungsg15–17/Magasinsg17 Inom Vallgraven 35:16A Kungsg19–23/Magasinsg18 Inom Vallgraven 35:14 Hamng21/ Västra Vallg 9 Inom 5 Albotorget Vallgraven 34:8 Kungsgatan31–33 Inom Vallgraven 33:9 5 Haraldsgatan Kyrkogatan 38–40 Inom Vallgraven 22:3 Inom Vallgraven 19:17 Annedal 7:11 Annedal 21:10 OFFICE/RETAIL Greater Gothenburg Undeveloped landetc Residential Warehouse/Industrial Office/Retail Real EstateSchedule oe *= Acquired 1999 T =Groundrent A =LeaseBBuilding permission Sjögren COR = Fastighets EKL=EklandiaFastighets AB AB Corallen AB HAR=Harry Note: subsidiary Management ASP = Aspholmen Fastigheter AB BRO =Fastighets AB BrostadenBRI=Fastighets AB Briggen YDECEMBER BY renovation Build Greater Gothenburg 4 5 5672 4 4 4 5 1 2 958 026 210429 951 2546 849 27148 35677 143 258 1—————40127—————4 61711 197HAR 916EKL2—————2 58264—————1 2443 814HAR7—————75—————3 15752 350HART 885—EKL8—————18—————83847—————23—————2 52815 59714 993294—————1 386EKLB 232EKL0—————4 024 97055 917EKLB 862EKL 0EKL 860EKL 266EKL* 31 1999 6————37————1 926156————3 67730————2 09821 2404 648EKL 942HAR 233HAR 818HAR5————50————3 25521 330248———3383 735HAR0————9868 183HART 379240————18————1 320EKL 57311 51313 382EKL 682EKL 915EKL Per typeofpremises(sqm) rhueIndustrial arehouse eieta te oa au ir Note diary value Total Other Residential ses gement assess- etsubsi- ment a Mana- Tax aeo rpryAdesMncplt erOfc ealW Retail Office year Municipality Address Name ofProperty Central Gothenburg ak 41Eprgtn1 ohnug17 6 6 918ELB EKL EKL 19158 EKL EKL EKL 4495 560 7 906 B 3344 4486 578 1 — EKL 966 103 2 292 — 8121 — — 130 895 2 — * — EKL EKL — — — — EKL * 18581 26154 — — EKL 7555 378 7 936 9 — — 7560 — 14445 600 2 — 6 — EKL 1578 586 4 — EKL — — 2103 4167 47 T — — 56 — 3267 — EKL EKL — 325 1 — 2895 — 321 1 — 5822 4369 — — — — — EKL — — EKL — — 049 2 340 1 * — 11411 13866 789 EKL EKL — — — 236 — 1972 9936 778 3 711 2 237 6 — Gothenburg 39631 — 8131 1978 316 2 — 4 16915 Gothenburg — — 4586 — 467 3 1977 — — Gothenburg — — EKL 1984 — Gothenburg — 1984 — — Gothenburg — 1135 10834 — 1968 1325 — — Gothenburg — 284 990 4 1321 1947/1988 — 15 Exportgatan — — Gothenburg — 197/1986 — — — Rimmaregatan4 1401 815 Gothenburg — 12 Importgatan 1972/1997 — — 200 51 Gothenburg 1990 029 2 — 12 — Bergögatan 3774 — Gothenburg 16915 6 Bergögatan Backa 94:1 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C ASTELLUM A NNUAL R EPORT 1999 C ASTELLUM A NNUAL R EPORT 1999 aeo rpryAdesMncplt erOfc ealW Retail Office year Municipality Address Name ofProperty ltöe oogtn1Knäv19 6 3 0 1 K B EKL HAR 7915 3517 505 1 517 1 B B — HAR HAR HAR HAR — 5901 HAR 7249 7233 5989 — HAR 14656 6440 10816 991 3 8992 — 11360 2076 — — * — — — — HAR 212 2 B — HAR 7683 — HAR HAR — — — HAR 138 1 — — 13721 HAR 804 4 12728 5161 347 1 8800 11 505 — 5123 314 8 847 9 * — 5748 — 246 3 — — 8753 — * 5705 — * HAR 192 3 HAR — — HAR — — 367 5409 — — HAR — 7124 — 8475 — 475 2 — 170 977 9 582 3 * 2739 B 260 — 766 4 — 662 5 HAR*/B HAR — — HAR — — — 800 — 2212 — — 10533 11674 — — — 8048 1991 709 — 243 9 — 748 8 692 — 1516 1991 HAR 239 — 3055 1383 760 3 — B 844 3 Kungsbacka Kungälv — 10407 — — EKL — — HAR 12043 1978/1990 — — 1933/1989 685 6 — — — Kungsbacka 1948/1961 570 2 4941 5186 3682 — 1935 B EKL — 530 2 — 1956 Alingsås HAR — — — — — 273 2 — 800 1 9977 180 — Borås 1961/1999 960 1098 * — — 800 Borås HAR — 791 1 B — 10090 Borås 1629 Tryckarevägen 8 954 2 — — 624 3 1929/1969 HAR 676 1765 HAR L:a — Verkstadsgatan 7 14798 Partille 3055 — 1 Motorgatan — B 662 — 4140 7653 — 7554 — 5643 HAR 1960/1965 — Alingsås — — Total 1930 748 6 523 7 — 3720 2740 Metallgatan 2–4 1819 102 3 1965 — — Kungsbacka 4:47 Kolavägen 2–8/Sidenvägen 7 1791 Mölndal — Hållingsgatan15 1812 1965 — — 2038 Mölndal Hede 3:131 T — — — — 2600 — — G:a Alingsåsvägen 29 Mölndal HAR 1965 Evedalsgatan 5 Flottören 6 — — — Mölndal — — Sagagatan17 Konfektasken 5403 15 2495 1 225 1964 Mölndal 2273 — — 1800 — — Gjutaren 26 1961 1961 HAR 2626 4140 * 18 Flöjelbergsgatan 4843 881 9 Kåbäcken 11:7 — 7 Flöjelbergsgatan A Mölndal — HAR — 11134 Mölndal Mölndal 8 Lagern — — 1221 7B Flöjelbergsgatan 2740 — — — 13599 1960 1970 782 2 Kilsund 3 11 Flöjelbergsgatan 1974 HAR HAR — 6290 — — 1600 Hinden 2 * 13 Flöjelbergsgatan 1979 Mölndal — Mölndal — — HAR 7217 4017 938 2 Mölndal Ängsviolen 1 — 209 — — * 1989 10 Flöjelbergsgatan Mölndal Vallmon 5 956 * 7 HAR 1705 — 983 — HAR HAR — Vallmon 6 — 074 2 Mölndal 3709 5 2538 Bergfotsgatan 800 3 Bergfotsgatan — HAR*/B — — 1966 10102 Vallmon 10574 3 1964 HAR — — — 1660 1966 164 Vallmon 2 — 564 4 16129 5612 — 9781 Mölndal Sallarängsgatan3 Mölndal HAR 3 Törnrosen 490 5 16 6290 Kryptongatan — 1000 — — Mölndal Wolfsgatan — 2 3101 — Tusenskönan 4 140 8636 14 Kryptongatan 1992 1975 — — — HAR 078 1 Tulpanen 1 — T 3642 1991 404 — Tjärblomman Ålegårdgatan5 3 Mölndal 1989 Mölndal — 6973 — 412 — 983 EKL 1999 EKL Tjärblomman 2 2538 — — — 18 Kråketorpsgatan Mölndal 4376 B Mölndal 3702 9 Syrgasen — — 9070 Elementvägen2 Mölndal T HAR 1180 — — — 5612 EKL 1704 8 Syrgasen — Elementvägen2 762 1 EKL 435 7 15604 — — — Skinntickan 1 — 604 1969 — 2548 — Gothenburg 15933 520 9 8 Östergårdsgatan — Pottegården 2 T — — — T 3074 EKLB/T T 5B Kryptongatan — EKL * 10330 Lindome 2:47 EKL — EKL 500 5 Aminogatan20–22 EKL 1980 2857 995 3 EKL 1978/1986 — — 35776 20–22 Argongatan 350 Gothenburg Johannefredsgatan 3 — EKL Gothenburg Lindome 2:40 1301 4219 — 8468 EKL 7848 — 8602 — — 15491 — 11344 — — — 3 T Kryddpepparn 3272 2253 B 041 1 — 3625 700 3 153 2 — 1140 827 2 — Heliumgasen 7 EKL 179 6 480 — EKL 12 Kontrabasgatan — 036 2 — 2 Generatorn — — 416 1 — 1973/1996 — 8799 — 1987 — — 1495 — 1965/1972 — 18516 Gothenburg Gothenburg Gothenburg Gaslyktan 2 553 — 1973/1979 — — EKL Gothenburg — 366 2 505 7 1978/1994 1984 Ekonomivägen 11 1981/1999 Anisen 3 — — Gothenburg Gothenburg Gothenburg 1762 — 255 7 — 25798 785 — — Datavägen 20 — Tynnered 1:10 — — — — — 12996 Askims 428 8 Kobbegården 6:724 Verkstadsväg — 15 — — 9411 2123 Askims Gustav 1991 Melinsgata7 Kobbegården 6:180 1968/1981 Verkstadsväg 16 — — 5500 — — Gothenburg — — Gothenburg — — — Askims Gustaf Kobbegården 209:1 WernersVerkstadsväg gata2 9 200 — 8398 1969/1979 — Fältspatsgatan1 180 — — Gothenburg Kobbegården 208:6 — 692 300 3 2153 270 SisjöKullegata4 Kobbegården 2827 155:2 1092 6179 719 — — 604 1 HuldaMellgrensgata3 Högsbo 7:16 1946/1987 — 056 1 — — — 1966/1973 Gothenburg — — gata7 AugustBarks Högsbo 40:1 6823 Gothenburg — — 1955 — 226 1 7505 gata25 AugustBarks Högsbo 4:1 Gothenburg 1914/1987 400 — E Högsbo 38:9 A RosengrensGata30–38 — — Gothenburg 1950 349 — — 12380 Gothenburg 432 Högsbo 36:5 360 1989 616 Högsbo 28:3 Gothenburg Waterloogatan6 1140 — Högsbo 26:8 84 Marieholmsgatan 1990 — Högsbo 18:1 1988 1991 1990 Gothenburg 1957 10 Marieholmsgatan Gothenburg 1990 Gothenburg Gothenburg Gothenburg Gamlestaden 48:10 Gothenburg 1988 Gothenburg Gamlestaden 46:8 1 1990 Kolgruvegatan Gothenburg Gamlestaden 26:1 11 1985 Stålverksgatan Gothenburg Tingstadsvassen 19:3 25 Industrigata Orrekulla 1972 21–23 Manufakturgatan Gothenburg Tingstadsvassen 14:7 Trankärrsvägen 14 19 Manufakturgatan Tingstadsvassen 12:9 Tagenevägen 9 Kolgruvegatan 72 Tingstadsvassen 12:6 Tagenevägen 62 Tingstadsvassen 11:9 Tagenevägen 70 94:1 Kärra Tagenevägen 33 80 70 R A SAESCHEDULE ESTATE EAL renovation Build Greater Gothenburg 19636621117 4 4 7 1 734 728 374019 1441 0 75745 241191 3676 51 966 Per typeofpremises(sqm) rhueIndustrial arehouse eieta te oa au ir Note diary value Total Other Residential ses gement assess- etsubsi- ment a Mana- Tax aeo rpryAdesMncplt erOfc ealW Retail Office year Municipality Address Name ofProperty Högsbo-Sisjön-Åbro, Gothenburg/Mölndal oeseg5: hlesaa 9Gtebr 9918 510——113—138551EKL 5501 EKL EKL EKL EKL EKL 358 1 10499 3213 10308 3567 14644 EKL 2540 — 041 1 299 1 317 3 083 1 EKL 2933 12 — — — 4742 — 1193 023 1 983 767 1 — — 970 1151 995 2 988 — EKL — — — — — 963 — 10400 EKL 15 750 2 773 — 34 EKL — 13112 EKL 110 — — — 213 3 4370 EKL 16555 312 — 148 288 55 820 2 60 4364 — EKL 192 1 71 EKL 95 363 2 434 11725 — 239 1 — 100 — — 9707 EKL — 1909/1980 — 735 2 976 2 — Gothenburg — — EKL 1910/1981 483 2 8038 — Gothenburg 336 2 — — 1059 1900/1994 1900/1980 8380 Gothenburg — 220 — Gothenburg 208 2 1928/1976 — 1106 EKL EKL — Gothenburg 160 2 110 2437 — EKL 75 EKL 20229 8555 50 — 1936 1911/1980 244 2 — 29 Chalmersgatan 12270 Gothenburg Gothenburg 149 025 3 — 38942 — 320 1 1932/1984 27 Chalmersgatan — 824 1 Gothenburg 162 EKL 853 1 867 8 EKL 117 — — 25 Chalmersgatan — 102 909 1 11075 — — — 40161 45 59:4 Lorensberg — 10 Framnäsgatan Vasaplatsen 6 — 109 455 1 4/Bomg9 Thorburnsg 1901/1987 — 8970 59:3 Lorensberg 133 2774 Gothenburg 233 1165 17 59:2 Lorensberg — 1634 104 35 88 66 8270 Eklandagatan48 130 — 1903/1980 49:12 Lorensberg Mölndalsvägen57 — 40 — Gothenburg 1900/1984 — 1927/1993 Krokslätt 9:11 — Gothenburg 194 Gothenburg 1150 221 — 1926/1993 Krokslätt 9:1 8217 54 Gothenburg — 211 1927/1993 Krokslätt 85:11 — — Gothenburg 1905/1993 65 — 99 Krokslätt 10:3 Gothenburg Kastellgatan12 1905/1980 — 8 Gothenburg Kommendantsängen 7:9 — 155 Kastellgatan8–10 190 — Kommendantsängen 7:21 — — 19 ÖHusargatan 1908/1978 Kommendantsängen 6:7 Gothenburg 197 — 1900/1977 1908/1977 Linnégatan54 — Kommendantsängen 4:14 Gothenburg Gothenburg 54 532 66 Linnégatan56 36 Kommendantsängen 4:13 130 1908/1990 Linnégatan60 1900/1980 Kommendantsängen 4:11 Gothenburg Linnégatan52 Gothenburg 1910/1987 251 Kommendantsängen 4:1 Gothenburg 1909/1974 621 Kastellgatan7 Gothenburg Kommendantsängen 3:5 Djupedalsgatan2 1975 1939/1980 1961 Kommendantsängen 2:3 Gothenburg Gothenburg Gothenburg Djupedalsgatan4 Kommendantsängen 2:2 Linnégatan40 1991 Kommendantsängen 2:1 1974 Gothenburg Gothenburg 27 ÖHusargatan StenSturegatan17 4 Arsenalsgatan Kommendantsängen 10:5 10/Nya Parkg Allén 5 Nygatan3 Stora Inom Vallgraven Magasinsg11–13/ 41:13 23–25 Daltorpsgatan Vallg 4–6 Inom Vallgraven 35:16B 16–22 Inom Västerg. Vallgraven 1:6 Heden 25:9 Föreningsgatan1–3 Heden 16:5 Bö 13:5–6 Annedal 7:12 Annedal 6:15 RESIDENTIAL Tynnereds- motet FRÖLUNDA RUDDALEN

JÄRNBROTT

E N Järnbrottsmotet HÖGSBO 158

SÄRÖLEDEN

D AG HAM MARSK JÖLDS LEDEN HÖGSBO SISJÖN R Sisjömotet A SAESCHEDULE ESTATE EAL renovation Build Greater Gothenburg Änggårdsbergen ————1 033261 0593 425EKL

6———1 063—16———877—96346———776—1 23943———604101 1424 032EKL 154EKL 91711 490EKL 884EKL SÖDERLEDEN Per typeofpremises(sqm) rhueIdsra Resi Industrial arehouse BIFROST TOLTORPS- DALEN eta te oa au ir Note diary value Total Other dential ÅBRO Åbyfältet

MÖLNDAL . ÅBY ses gement assess- etsubsi- ment E6 E20 a Mana- Tax 71 RÄV

C ASTELLUM A NNUAL R EPORT 1999 R EAL ESTATE SCHEDULE

Greater Gothenburg 1999 EPORT R

Tax Mana- Build assess- gement

NNUAL renovation Per type of premises (sqm) ment subsi- A Name of Property Address Municipality year Office Retail Warehouse Industrial Residential Other Total value diary Note

Masthugget 1:14 Plantagegatan 5 Gothenburg 1901/1980 — 78 11 — 2 690 — 2 779 11 308 EKL Masthugget 2:3 Linnégatan 9 Gothenburg 1896/1990 905 465 — — 2 131 — 3 501 21 247 EKL Masthugget 3:6 Linnégatan 5 Gothenburg 1893/1980 1 283 628 — — 1 080 — 2 991 15 704 EKL

ASTELLUM Masthugget 8:2 Andra Långgatan 10 Gothenburg 1929 — 201 — — 834 — 1 035 4 803 EKL C Masthugget 8:6 Andra Långgatan 4 B Gothenburg 1929 202———962—1 1645 882EKL Masthugget 9:15 Andra Långgatan 13 Gothenburg 1917/1983 — 176 — — 643 — 819 5 196 EKL Masthugget 9:18 Nordhemsgatan 18 Gothenburg 1917/1983 111———494—6053 691EKL Masthugget 9:19 Nordhemsgatan 16 Gothenburg 1917/1983 — — 40 — 614 — 654 3 044 EKL Vasastaden 17:11 E Dahlbergsgatan 28 Gothenburg 1890/1981 — 102 30 — 887 — 1 019 4 122 EKL Vasastaden 17:12 E Dahlbergsgatan 26 Gothenburg 1886/1980 — 99 31 — 903 — 1 033 4 157 EKL Vasastaden 17:13 E Dahlbergsgatan 24 Gothenburg 1900/1979 — 94 32 — 925 — 1 051 4 046 EKL Vasastaden 17:14 E Dahlbergsgatan 22 Gothenburg 1886/1980 94———1 020—1 1144 466EKL Vasastaden 17:2 Vasagatan 23 Gothenburg 1888/1981 320 200 17 — 2 315 — 2 852 13 296 EKL Vasastaden 17:6 Aschebergsgatan 9 Gothenburg 1888/1979 — — 64 — 1 047 — 1 111 4 768 EKL Vasastaden 17:7 Aschebergsgatan 11 Gothenburg 1891/1979 — 110 — — 1 079 — 1 189 5 014 EKL Vasastaden 17:8 Aschebergsgatan 13 Gothenburg 1892/1979 106———1 070—1 1764 852EKL Vasastaden 17:9 Aschebergsgatan 15 Gothenburg 1888/1980 116 63 157 — 2 189 — 2 525 10 738 EKL Vasastaden 5:2 Storgatan 27 Gothenburg 1909 — 46 — — 1 201 — 1 247 8 811 EKL Vasastaden 7:15 Viktoriagatan 8 Gothenburg 1878/1983 — 300 — — 1 045 — 1 345 7 596 EKL Gårda 69:2 Gradmanspl 3/N Gubberog 3 Gothenburg 1937/1994 — 126 — — 2 524 — 2 650 19 906 EKL Kviberg 18:2 Styckjunkaregatan 4 Gothenburg 1946/1986 ————985—9856 641EKLT Kviberg 8:5 Kanongränd 4 Gothenburg 1942/1990 55 — 110 — 1 556 — 1 721 10 861 EKL T Kålltorp 109:1 Hjalmar Selandersg 3 Gothenburg 1946/1987 ————1 876—1 87612 472EKLT Kålltorp 109:2 Ättekullen 1 Gothenburg 1991 ————1 5752151 79013 242EKL Kålltorp 120:3 Virginsgatan 7 Gothenburg 1947/1986 ————1 105—1 1057 234EKLT Kålltorp 27:18 Kallkällegatan 16 Gothenburg 1938/1986 62———830—8926 133EKL Kålltorp 38:18 Björcksgatan 30 Gothenburg 1935/1985 ————7442299734 475EKL Kålltorp 43:11 Sanatoriegatan 29 Gothenburg 1938/1987 — 38 — — 501 — 539 3 534 EKL Lunden 8:10 Lundg 8/Karlag 28 A Gothenburg 1934/1974 — 59 76 — 846 260 1 241 4 129 EKL Lunden 8:5 Schéeleg 9/Karlag 36 Gothenburg 1932/1975 ————1 143—1 1434 147EKL Olskroken 16:6 Ånäsvägen 56 Gothenburg 1926/1982 ————1 174—1 1745 277EKL Stampen 15:19 Friggagatan 25 B Gothenburg 1937/1987 — 201 — — 1 403 — 1 604 10 601 EKL Stampen 19:7 Ranängsgatan 12 Gothenburg 1928/1988 — 163 — — 1 126 — 1 289 8 847 EKL Torp 32:3 Birkagatan 45–47 Gothenburg 1946/1986 214 449 106 — 1 949 — 2 718 17 621 EKL T Utby 105:1 Gärdsåsg 2 / Snörmakareg 1–19 Gothenburg 1950/1991 — — 51 — 1 570 — 1 621 10 603 EKL T Torp 1:251 Ådalavägen 9–15 Lerum 1992 ————3 168—3 16816 385HAR Ugglum 126:4 Gibsons väg 3 Partille 1990 ————468—4681 721HAR Björnen 10 Kungsgatan 49–51 Alingsås 1988 — — 27 — 1 867 — 1 894 7 547 HAR Total 8 330 6 245 1 708 0 106 185 818 123 286 615 392

PROJECTS Gullbergsvass 1:15 Lilla Bommens Torg Gothenburg ————————EKL */B Kallebäck 752:176 Grafiska Vägen 2–4 Gothenburg ———————8 494EKLB Masthugget 26:1 Barlastgatan 2 Gothenburg 3 970 1 100 — — 2 828 — 7 898 22 564 EKL Total 3 970 1 100 0 0 2 828 0 7 898 31 058

UNDEVELOPED LAND ETC Annedal 21:9 Haraldsgatan Gothenburg ————————EKL */B Kärra 28:10 Transportgatan 37 Gothenburg ————————EKLB Kärra 74:2 Tagenevägen 29 Gothenburg ————————EKLB Kärra 75:3 Transportgatan 33 Gothenburg ————————EKLB Högsbo 33:1 Gruvgatan 29 Gothenburg ———————404HARB Högsbo 36:9 Hulda Mellgrens gata 7 Gothenburg ———————312HARB Högsbo 39:3 Ingela Gathenhielms gata 8 Gothenburg ———————206HARB Kobbegården 152:1 Industrivägen 4–6 Gothenburg ———————1 559HARB Kobbegården 6:7 Ekonomivägen 11 Gothenburg ———————462HAR */B Gaslycktan 11 Argongatan 26 Mölndal ———————438HARB Generatorn 1 Aminogatan 24 Mölndal ———————2 761HARB Heliumgasen 4 Neongatan 4B Mölndal ———————1 424HARB Kyllared 1:112 Tvinnaregatan 27 Borås ———————256HARB Svetsen 10 Lamellgatan 10 Borås ———————170HARB Skällared 3:49 Lysekulevägen Kungsbacka ———————406EKLB Varla 2:388 Energigatan 21 Kungsbacka ———————450HARB Solsten 1:108 Företagsparken Härryda ———————1 492EKLB Solsten 1:109 Företagsparken Härryda ———————143EKLB Total 000000010 483 Total Greater Gothenburg 207 524 46 698 270 047 76 594 111 559 3 210 715 632 2 349 687

72 R EAL ESTATE SCHEDULE

The Öresund Region 1999 EPORT R

Tax Mana- Build assess- gement

renovation Per type of premises (sqm) ment subsi- NNUAL Name of Property Address Municipality year Office Retail Warehouse Industrial Residential Other Total value diary Note A

The Öresund Region OFFICE/RETAIL Betongen 11 Krangatan 4 Malmö 1991 4 876 — 17 — — — 4 893 28 758 BRI T

Björnen 6 Davidhallsgatan 20 Malmö 1920/1988 1 781 355 90 — — — 2 226 13 945 BRI ASTELLUM Brandnävan 1&2 Stenbärsgatan 1 Malmö 1989 2 458—————2 4587 225BRI* C Folke 3 Fredriksbergsgatan 1 A–C Malmö 1988 1 898 — 170 — 2 125 — 4 193 21 744 BRI Lybeck 6 Stora Nygat. Malmö 1964/1992 7 042 9 592 — — 5 032 9 000 30 666 157 172 BRI * Malte 23 Fredriksbergsgatan 1 A–C Malmö 1965 5 185 1 306 677 533 — — 7 701 24 651 BRI * Murman 8 Krusegatan 27 Malmö 1960/1989 5 080 — 2 044 — — 27 7 151 14 014 BRI Norsen 12 Föreningsgatan 27 Malmö 1930/1990 2 353 115 96 54 140 363 3 121 16 107 BRI Nötskrikan 5 S Förstadsgatan 66 Malmö 1800/1989 586 483————1 0695 721BRI Påskbuketten 10 Hästvägen 4E Malmö 1987 796—————7963 240BRI Påskbuketten 5 Amiralsgatan 115 Malmö 1987/1987 804 — 40 — — 279 1 123 3 651 BRI B Spännbucklan 16 Nya Agnesfridsvägen 178 Malmö 1972/1987 — 2 755 234 60 — — 3 049 11 425 BRI B St Hamburg 14 St Hamburgsgatan 1 Malmö 1900/1991 5 208 4 418 13 — — 395 10 034 84 018 BRI Svedjenävan 3 Stenbärsgatan 4 Malmö 1991 2 091 — 42 — — — 2 133 11 397 BRI Tuborg 1 Tuborgsgatan 2 Malmö 1945/1980 6 598 — 199 403 — 417 7 617 30 707 BRI Erik Dahlberg 2 Kullagatan 21 Helsingborg 1890/1987 400 442————8426 656BRI John Ericsson 15 Prästgatan 2 Helsingborg 1885/1990 293 133 — — 207 250 883 3 527 BRI Kavalleristen 9 Berga Allé Helsingborg 1920/1988 10 096 180 1 491 — — 667 12 434 54 564 BRI Musköten 5 Bergavägen 8 Helsingborg 1970/1985 817 1 357 817 — — 816 3 807 7 129 BRI Rustningen 1 Rundgången 26–32 Helsingborg 1989 7 776 487 1 687 584 — — 10 534 41 400 BRI Snårskogen 1 Kanongatan 157 Helsingborg 1991 1 379 3 331 2 430 579 — — 7 719 26 479 BRI Vikingen 12 L Strandgatan 7 Helsingborg 1912/1988 610————6001 2106 757BRI Vikingen 4 L Strandgatan 5 Helsingborg 1900/1983 —————8008003 967BRI Vikingen 6 Mariagatan 10 Helsingborg 1878/1984 535 159————6943 805BRI Jöns Petter Borg 9 Landerigränd 21 Lund 1990 4 442 — 6 794 — — — 11 236 45 187 BRI */B Kvartsen 2 Skiffervägen 15 Lund 1991 695 — 934 — — — 1 629 6 674 BRI Reuterdahl 11 Scheelevägen 16 Lund 1990 3 108—————3 10824 360BRI Smörkärnan 1 Kaprifolievägen 1 Lund 1968/1995 5 972 — 83 — — 1 470 7 525 50 689 BRI St Clemens 22 Stortorget 6 Lund 1832/1981 666 1 551 — — 847 — 3 064 31 054 BRI St Clemens 27 Stortorget 4 Lund 1846/1999 148 1 481———1761 8051 275BRI Stockholmsledet 8 Scheelevägen 30 Lund 1991 10 702 273 608 65 — — 11 648 42 351 BRI Trumlan 1 Traktorvägen 19 Lund 1990 90 1 183 1 247 — — — 2 520 7 251 BRI Motorblocket 1 Ringvägen 170 Landskrona 1972/1992 100 9 267 130 — — — 9 497 30 157 BRI T Total 94 585 38 868 19 843 2 278 8 351 15 260 179 185 827 057

E20

t. H ö Väla trafikplats g a n LOMMA ä s

111

ÅKARP G VÄ S LM O H K C TO ARLÖV S

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E20 N E D N IN E22 E E R L E G S Ä R M Ö I V N L HAMNEN S A G O T L H V. E Ä R V Öresund L E D

E GAMLA E6 N - E20 L STADEN KIRSEBERG E G E22 11 N Ä

N E G NORR INNER- Ä V VÄGEN STADEN G VA TORPS

N SA

LIMHAMN R

N I

S FREDRIKSDAL

T O ROSENGÅRD R B K L

A HUSIE

K E6 E20 E20 HYLLIE VÄGEN E22 O A S NN L 111 ET HÄ O R P GEN OLYMPIA SVÄ E20 N E Ä G INRE RINGV FOSIE E65

YS T T BUNKEFLOSTRAND 101 AD R V Ä S E GE N Ö L CENTRUM BUNKEFLO L D E

B R

O A R

G S

S K T

V Ä E Ä G N G resund Centralstn. E L OXIE B Ö I N N O S G C T E K E V

Ä S R

G G L

. E N SÖDER D E . N SG RP SVÄGEN TO ÄLTARP RU F 101 FU GUSTAVS Malmö Helsingborg

C ASTELLUM A NNUAL R EPORT 1999 d

m R 74 Lund a BRI BRI BRI 5133 6311 1866 097 3 276 2 BRI * 013 1 BRI * 460 2 30215 BRI — — BRI 7055 BRI 410 9 — 3366 2875 3439 943 2 T — — 1529 T — B 2000 3104 BRI 366 — BRI T 511 BRI 10238 — 310 — — BRI 20900 BRI — 2539 195 900 3 8699 — — 3643 8508 — 845 — — 105 2 — 260 — 200 1 6606 950 * T — — — — — — — BRI BRI 757 6 72 — 1005 — 76 T 2352 14464 T 465 2 548 — 171 BRI 955 — — 340 1 — T 533 7 BRI — — 1420 63 — 11082 BRI BRI — — 10020 144 1 — 510 6 2653 — BRI T 3182 — BRI — 1960 162 1566 490 7 200 5 3900 B/T Helsingborg — 478 BRI 1990 5097 — 44364 630 2 470 Helsingborg 350 220 1 BRI — — — — — 4226 039 5 685 41771 380 2 1200 1972 1989 — 11993 Helsingborg — Helsingborg — 544 8 3516 — — — 978 3 — — — 3167 — 1220 1990 1946 — 490 Helsingborg 1985 — T 1979 — — — — 1405 S 3 Tvärgången — — BRI 864 6 — 160 Malmö — Malmö Malmö 2240 1960 1959/1987 — 45115 — — — Lastgatan9 100 6 — 3 Mörsaregatan 1985 — 23618 27051 1940/1985 190 7 Mogatan2–6 Malmö — Malmö — 571 3 7 Mellersta — Mörsaren 210 2 — 821 1980 Måndagsgatan6 Malmö 669 — 200 Malmö Mimer 12 2380 — — 3 Hyveljärnet 578 2 410 3936 Malmö Lundavägen — 62 1935/1985 — Ridspögatan10 123 3 2 Grusbädden 1964/1972 300 — Sadelgatan9 1 12444 Bergakungen 1940/1990 420 124 Murmansgatan — 1994/1994 Malmö Skjutsstallslyckan 3 399 Malmö 172 4 — 16 Jägershillsgatan 21 Krusegatan Sadelknappen 4 448 Malmö Malmö — 855 Sadelknappen 1 1966 1952/1976 1 Borrgatan 9 Revolversvarven 1962 Sångleksgatan 9 1962/1990 Plockbandsgatan4–6 7 Murman Malmö 1935/1987 3 431 Malmö 1989 Lantmannagatan22–26 11 Murman Malmö Malmö 1960/1974 Moränen 1&2 15 Malmö Borrgatan Bronsyxegatan 11 Malmö Långdansen 1 Malmö Kolonnen 20 Kockgatan11 Jörgen Kampen 25 30–34 Höjdrodergatan 5 Kalkgrundet Bjurögatan29 4–8 Skruvgatan Holkyxan 5 4 Skruvgatan Hamnen 22:27 Flintrännegatan21 Risyxegatan 6 Flygvärdinnan 4 1 Finngrundet Dubbelknappen 17 Bjälken 3 Bjälken 2 Bjurö 12 WAREHOUSE/INDUSTRIAL ING W Retail Office year Municipality Address Name ofProperty EN 16

Värplingeskolan H

108

n V

F Höje å Höje T

108

N Ä

G G

E E

Traktorvägen

TR O industriområde Gunnesbo

ind.omr. Pilåkers

S t

kyrkogård gamla Flackarps b

G . G ä Fågelskolan ss

lin v E dagcenter Landstingets ga N v . KLOSTERS äg

reningsverk Källby e n FÄLAD Södra industriområdet

Öresundsvägens Annedalsv. 16

TORPS KOM skolan Palett- S N KOMMUN MUN O R

Bondevägen R Ö A

R r e I

N s

ind.omr. G u

n E

d N

FJELIEVÄGEN

e n Klostergårdsfältet

R Höje å Höje FASANVÄGEN

B SCHEDULE ESTATE EAL RYGG AR EG A The ÖresundRegion renovation T Build skolan Kobjer- Sankt Larssjukhus AN

T kyrkan Väster-

r o KAPRIFOLIEVÄGEN

l hem barns- Späd- l e

s Stadsparken

v skolan Lerbäck- ä

STATTENA en VÄGEN K

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Bang. S Spolegatan

s :

Ruben Rausinsg. Ruben t

v P

ä e

g t Karl XI-gatan

Sö r d i n Högskola Social

industriområde Rådbyholms e Gröneg. rg. K

Rådhuset

r k

Vårdskolan

. S Stortgt.

Paradisg. Norra Kyrkogården Per typeofpremises(sqm) Dom k:n t Kyrkog. Universitet Bredg. S .

ö T Vår Landerigr. fr. Borgs v d v g.

äg r ä rhueIndustrial arehouse Råbyholms allé Råbyholms a r

E22 E

. B a n

s g a t a p n l

a Konsthall n a bibl. Univ.

d Kulturen

S e

lasarett Lunds

ö n M

b d y B g

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L ra i

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K k

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g hallen EOS- g k

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gården Kyrko- Östra Östra Vallg. trädgård. Botaniska

eieta te oa au ir Note diary value Total Other Residential

Fysicum

T b

n y a

v inst. Univ. ä v

e ä

g Vegaskolan

e n Högskolan Tekniska Yrkes- skola Getingevägen

Maskin

N O T u R n R a A

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g I

en N G

E22

N Råbyvägen

Ski Ideon ff parken Forskar- erv äg

K en alksten

Scheele 16

vägen sväg

ses gement assess- e

Fältspatv. n Po subsi- ment rfyr Mana- Tax v E22

äg 16

Kalkstensvägen Skiffervägen en Glimmerv. St. Råby

kyrka DALBYVÄGEN

Skol Prästav Granitav V a äge äg a R EAL ESTATE SCHEDULE

The Öresund Region 1999 EPORT R

Tax Mana- Build assess- gement

renovation Per type of premises (sqm) ment subsi- NNUAL Name of Property Address Municipality year Office Retail Warehouse Industrial Residential Other Total value diary Note A

Nide 2 Rundgången 10 Helsingborg 1955/1985 2 425 — 4 879 2 386 — 304 9 994 21 575 BRI Studsaren 4 Bergavägen 21 Helsingborg 1970 —————1 0491 0493 211BRI Annedal 9 Annedalsvägen 7 Lund 1990 — — 1 296 — — — 1 296 3 461 BRI Kvartsen 3 Porfyrgatan 10 Lund 1985 — — 222 450 — — 672 2 067 BRI ASTELLUM C Råbyholm 5 Landerigr 2–4 Lund 1984 2 484 — 7 908 — — — 10 392 38 190 BRI * Årdret 12 Höstbruksvägen 14 Lund 1990 — — 2 048 — — — 2 048 5 539 BRI Svedala 122:79 Verkstadsgatan 4 Svedala 1991 100 — 3 764 — — — 3 864 4 817 BRI Tryckaren 4 Helsingborgsv 31, 33 / Metallg 12 Ängelholm 1965 1 760 — 4 627 1 960 — 923 9 270 19 614 BRI B Tågarp 16:22 Företagsvägen 14 Burlöv 1968/1993 — — 9 919 — — — 9 919 18 106 BRI Tågarp 16:72 Företagsvägen 25 Burlöv 1973/1988 — — 2 886 — — — 2 886 5 806 BRI Total 26 830 1 144 131 377 22 233 72 18 422 200 078 381 935

RESIDENTIAL Ehrensvärd/De la Gardie Cederströmsgatan 6–8 Helsingborg 1943/1985 27 40 179 — 5 656 — 5 902 18 468 BRI Garvaren 14 N Stenbocksgatan 44, 46, 48 Helsingborg 1940/1990 — 95 — — 4 078 — 4 173 19 636 BRI Gjuteriet 14 Hjälmhultsgatan 10–12 Helsingborg 1940/1992 ————2 390—2 39013 242BRI Hallen 21 Drottninggatan 96–98 Helsingborg 1956 — 371 — — 899 — 1 270 3 535 BRI Hamilton 1 Ehrensvärdsgatan 6–8 Helsingborg 1939/1996 ————1 551—1 55111 304BRI Hammaren 24 Stampgatan 13 Helsingborg 1938/1991 ————1 169—1 1693 232BRI Kaplanen 9 Kopparmöllegatan 15 A–C Helsingborg 1944/1988 ————2 331152 34610 473BRI Karl XI Norra 29 Bruksgatan 17 Helsingborg 1929/1986 — 106 — — 375 — 481 2 602 BRI Karl XI Norra 30 Bruksg 13 / Möllegr 10–20 Helsingborg 1930/1988 — 691 20 — 4 340 — 5 051 30 539 BRI Kullen Västra 44 Fågelsångsg 23 / St Jörgens Pl 8 Helsingborg 1929/1987 — 248 — — 2 399 131 2 778 13 093 BRI Kullen Västra 6 Fågelsångsgatan 23 Helsingborg 1929/1987 55———992—1 0474 988BRI Linvävaren 25 Gullandersgatan 5 A–C Helsingborg 1943 ———923 552—3 6447 427BRI Långvinkeln Västra 47 N Långvinkelsgatan 47–57 Helsingborg 1960 219 614 — — 6 136 — 6 969 16 572 BRI Långvinkeln Östra 2 Rektorsgatan 8–10 Helsingborg 1946/1986 ————2 926—2 92613 120BRI Näktergalen Södra 16 Farmgränden 6 Helsingborg 1985 ————146—1461 081BRI Parkkvarteret 7 Krabbegatan 14 Helsingborg 1943/1987 ————983—9834 595BRI Pastorn 1 Rektorsgatan 12–16 Helsingborg 1947/1986 ————2 702—2 70212 358BRI Pålsjö Södra 13 Drottninggatan 119–123 Helsingborg 1938/1996 ————1 867—1 86713 569BRI Ugglan 11 Dämmegatan 6 Helsingborg 1936/1989 ————1 277—1 2775 309BRI Ugglan 13 Dämmegatan 10 Helsingborg 1937/1989 ————1 188—1 1885 706BRI Ugglan 5 Mellersta Stenbocksgatan 39 Helsingborg 1929/1987 — 29 — — 1 108 — 1 137 5 402 BRI Unionen 25 S Strandgatan 5–7 Helsingborg 1907/1986 — 177 — — 2 351 314 2 842 11 729 BRI Yxan 8 Hälsov 39 / Möllebäcksg 2–4 Helsingborg 1950/1987 99———4 186—4 28519 356BRI Agardh 4 Östra Vallg 37 A–B/Lilla Kyrkog 19 Lund 1929/1981 — 38 — — 1 724 — 1 762 5 876 BRI St Botulf 11 Botulfsg 5 / Skomakareg 4 Lund 1931/1990 380 976 — — 3 139 388 4 883 43 762 BRI Thomander 32 Sandgatan 14 Lund 1871/1988 177———434—6114 155BRI Ugglan 24 Stora Tvärgatan 38 A–B Lund 1929/1983 ————668—6682 138BRI Ugglan 25 Bankgatan 15 A–B Lund 1990 131 538 65 — 2 237 — 2 971 17 259 BRI Ugglan 8 Stora Tvärgatan 42 Lund 1929/1987 ————490—4902 784BRI Filaren 23 Vengatan 20 Landskrona 1958/1978 ————565—5651 009BRI Gröna Lund 24 Östergatan 3 / St Norregatan 2 Landskrona 1900/1989 153 248 — — 1 563 250 2 214 9 980 BRI Herkules 1 Ödmanssonsgatan 36 A–B Landskrona 1944/1987 — — 25 — 1 283 — 1 308 5 040 BRI Hägern 9 Tranchellsgatan 81–83 Landskrona 1906/1967 44———1 181—1 2252 178BRI Kung Karls Varv 25 Drottningg 17 / Storg 19–23 Landskrona 1700/1981 — 181 — — 2 140 — 2 321 7 665 BRI Kung Karls Varv 26 N Långgatan 10 Landskrona 1990 266———2 577—2 84314 024BRIT Madrid 19 N Infartsgatan 47–49 Landskrona 1992 ————1 624—1 6248 356BRI Milano 12 Norra Infartsgatan 52 Landskrona 1953/1986 — 57 — — 517 — 574 2 089 BRI Torstensson 7 Karmelitergatan 3 Landskrona 1907/1986 ————405—4051 302BRI Total 1 551 4 409 289 92 75 149 1 098 82 588 374 953

PROJECTS Hälsingland 19 Fosievägen 9–19 Malmö — 4 640 — 10 000 — — 14 640 6 454 BRI Munken 1 Rektorsgatan 5 Helsingborg 226 979 150 — 8 479 28 9 862 32 917 BRI Total 226 5 619 150 10 000 8 479 28 24 502 39 371

UNDEVELOPED LAND ETC Stockholmsledet 10 Scheelevägen Lund ————————BRI */B Total 00000000 Total the Öresund Region 123 192 50 040 151 659 34 603 92 051 34 808 486 353 1 623 316

75 C ASTELLUM A NNUAL R EPORT 1999 aeo rpryAdesMncplt erOfc ealW Retail Office year Municipality Address Name ofProperty lkr ätegvgn2 tchl 969625596———7171 8 BRO 13483 BRO ASP 117 7 BRO 7199 2107 BRO — 8579 384 3 ASP 650 5063 075 3 BRO 2600 — — 126 2 ASP — BRO ASP — 15612 ASP 1100 2950 — 930 5 32983 3836 — 1982 — — 588 1 17781 — — 1027 — 830 — — — — 5946 — — 615 — — — 235 — — — 3384 BRO — BRO 1100 — BRO 3075 — — 936 2949 — 2896 32469 — 2126 — BRO * — — 1027 890 1 21137 — BRO BRO 630 1 BRO 9164 — 5930 — — — 6934 — 12877 — — 16857 T — 7191 943 5790 BRO — 1946 — BRO 35 288 5 — B 903 2 — Stockholm 700 2 3585 600 BRO — — 23500 — — — — — — — 833 1 8099 13182 — — 924 1991 — 3866 — T 7972 T — — — 1990 — 645 — — 1986 BRO — BRO BRO 1990 T — Sigtuna 1987/1989 — BRO 12870 25 Västbergavägen 230 BRO 7719 27104 1990 Sigtuna 25667 5790 Sigtuna 10931 — — — 200 1 — 1988 1630 Sigtuna 11278 8150 Sigtuna — 1950 10068 — 423 7 — — Sigtuna 833 2 1969 — 1990 — — — Sigtuna — 295 — 3459 — 330 4 1989 T 1938 — 43–45 Rosersbergsvägen 2700 Sigtuna Tallbacksgatan 2534 16 — Sigtuna BRO T 978 1 690 3 — Elektra — — BRO — 190 Tallbacksgatan 1974/1986 18 — Sigtuna 670 1 — 26546 989 — 2:21–22 Rosersberg BRO — Tallbacksgatan — 14 4227 16 Servogatan 299 6 Botkyrka 11:36 — Rosersberg — Tallbacksgatan 21176 6–12 775 958 — 6723 11:35 11 Elkraftgatan Rosersberg 1950 — 465 1 — — — 047 4 1985 2662 — 11:34 11–13 Elkraftsgatan Rosersberg — 1990 1976/1979 — — Maskingatan 5–7 1974/1988 163 11:12 Rosersberg — 6198 Botkyrka Bangatan14 Östra 343 Stockholm ASP Botkyrka 6342 — 23:8 Märsta Botkyrka 1968 512 1 ASP KumlaGårdsväg21 3380 — 1965/1988 21:54 8137 Märsta — 1975 — 288 1964 — 7023 — 21:51 Märsta Stockholm 490 KumlaGårdsväg24 A–B — 600 2 Järfälla 16:2 Märsta 2764 Järfälla 1427 1964 — 793 — KumlaGårdsväg24 C Järfälla Broby 11:8 — — 1321 Strömsätravägen 7 9 — Hantverkarvägen 3189 Mästaren 1 Järfälla BRO Kumla Hage3 Ekholmsvägen32–36 490 1976 2805 — 1987 516 Kumla Hage13 5703 Sollentuna — T Kontov 7/ 1960 Veddestav 23–25 Stockholm 1989 1982 2 Hantverkaren 305 BRO — Nettovägen 11 Sollentuna 1297 Stockholm — Stockholm 7 Stensätra — BRO Nettovägen 7037 5 2115 BRO Getholmen 1 — 187 Girovägen 9 3230 975 715 2 Veddesta 2:50 22364 27–29 Domnarvsgatan 3531 — T 450 56 1963 Veddesta 090 1 BRO 2:26 652 5 — Gunnebogatan24–26 — Stockholm Veddesta 2:21 T 67959 374 19B 1991 Fagerstagatan — — — — Kuskvägen2 Veddesta BRO 2:19 961 7 1990 1991 Bäckvägen18 4 — Domnarvet 185 21179 Stockholm Nacka 1929 39 — Domnarvet — 2150 — 649 540 4 13–15 Karlsbodavägen 1962 Stockholm Nacka 27 Domnarvet — — Stockholm 2 — Tidskriften 274 * 1970/1988 — — 50 BRO — Elementet 4 BRO 1992 BRO 418 420 Vallonsmidet 6 18C Solkraftsvägen 11284 273 Sigtuna 31959 — 120 WAREHOUSE/INDUSTRIAL — BRO 490 BRO 642 3 24563 1360 Vikdalsgränd10 * Sigtuna 1993 530 6 1 241 694 1477 BRO B LillaNygatan19 Tegeluddsvägen 319 6 97 204882 Vikdalsvägen50 50470 1929 — BRO 292 4 BRO Total 569 — 22540 — — 421 1970/1995 15279 12438 60 Sigtuna Stockholm 818 — 11 Solkraften 60564 1985 13 925 — — Stockholm 350 4 — Gaffelgr 1A/Lilla Hopparegr1 Sicklaön 394:5 10218 Stockholm — 3553 345 — 600 1987 Sicklaön 393:4 100 — 1990 — — 1987 Maskingatan8 — — 1971/1985 8 Pyramus Huddinge — Stockholm T 1986 Maskingatan3 — Huddinge — 1965/1975 Haifa 1 Gråhundsvägen82–84 BRO 431 BRO 7801 — — Huddinge 1 — — 1&Dvärgsp. Raisogatan1–27 Drevern Järfälla — * 107 232 87500 — — Callisto 1 BRO 16018 4195 Järfälla 191 Ekholmsvägen23 14523 524 17:6 Märsta 1–13 Måsholmstorget 779 — — 1989 39466 — 361 2 1991 — BRO 1675 BRO 16:3 167 Märsta 359 Stockholm — Stockholm 269 7 1 Jägerhornsväg — 1:219 — Märsta 78042 80262 575 8 Jägerhornsväg 1989 340 2 — 264 Hästholmen 2 — 17974 743 — 10705 877 6 Jägerhornsväg Stockholm 1990 3451 Getholmen 2 — — 6006 Nettovägen 1 Stockholm 3958 20290 — 16 Arrendatorn 1300 — — Nettovägen 7 1950/1990 11202 — 1194 Finlandsgatan16–18 23 Altartorpet Stockholm 8654 Finlandsgatan10 2010 — 22 Altartorpet — 891 2 1986 1989 2643 1990 Finlandsgatan12–14 3723 Veddesta 2:23 Avestag — 29/Kronofogdev 56 Stockholm 1987 Sollentuna Finlandsgatan24–48 — Sollentuna Veddesta 2:22 644 588 Sollentuna 448 1990 Mandelblomman 15 1973 188 Sollentuna Ekenäs 4 Stockholm 1970 10438 Huddingevägen 103–109 3590 11707 2345 Ekenäs 3 Stockholm Sidensvansvägen8–10 1957/1990 — Ekenäs 2 1829 Bolidenv 14–16/ 3 Tjurhornsgr 757 Stockholm Ekenäs 1 1960 32 Bergskällavägen 416 11911 Djupdalsvägen 15 Tjurhornet Stockholm 7081 7155 Djupdalsvägen1–7 25–26 Renseriet Sjöstugan 1 1979 Gårdsfogdevägen 1–7 Alpvägen17 1964 4 Ringpärmen Stockholm 1972 Stockholm 1965 39–41 Karlsbodavägen Ekstubbarna Stockholm Stockholm Ekplantan 4 Vallonsmidet 5 25–31 15 Linaberg 15, Adolfbergsvägen Gårdsfogdevägen 2–6 11 Fredsfors Gårdsfogdevägen 18B Bällstavägen 28–36 Betongblandaren 13 Betongblandaren 12 Archimedes 1 Alphyddan 11 OFFICE/RETAIL Greater Stockholm 76 R A SAESCHEDULE ESTATE EAL renovation Build Greater Stockholm 6 7 4932 2 5 3 1 2 1185777 212325 0 1334 4753 25325 14943 165 970 3—————11———451—19—————3 873105—————5055 749—BRO7———883—35—————12—————5 01285—————4 2059 69225 366BRO 243BRO 21510 630160—————4 483BRO3—————7 228BROT 31020 79369 801BROT 938BROT 182ASP 247BROT0—————4 355BROB/T 16012 586BRO 0————3 97123 885BRO Per typeofpremises(sqm) rhueIdsra Resi Industrial arehouse eta te oa au ir Note diary value Total Other dential ses gement assess- etsubsi- ment a Mana- Tax aeo rpryAdesMncplt erOfc ealW Retail Office year Municipality Address Name ofProperty oa rae tchl 7 1 18116403 2 3 6 8 1 365085 0 1334 T 35923 BRO T 126470 BRO 848 T 21841 BRO 1536 179517 425 1710 840 810 — — A — BRO — 41200 — 12318 — — — BRO T/A — — 7033 425 — 840 900 1 Huddinge 810 — — — — — — — Sollentuna 11763 — Botkyrka Stockholm — — Bolidenv 2–6/Huddingev101 — Sollentunaholmsvägen1–7 Smista Total Greater Allé Stockholm 555 1979 1962 1900 Stockholm Total KumlaGårdsväg 21 Stockholm 1960 Linde Torp 8 — Stockholm Rankan 3–4 1985 Smista Park Stockholm — Saltmossen 3 Tornväktargränd 10 ETC LAND UNDEVELOPED Tornväktargränd 8 Tornväktargränd 6 1963/1983 Total Stockholm 7–9 Transportvägen Tornluckan 4 Bällstav 159/ Tornväktargr 1–9 Tornluckan 3 Tornluckan 1 Torngluggen 1–3 Godståget 7 Mariehäll/Bromma

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C ASTELLUM A NNUAL R EPORT 1999 C ASTELLUM A NNUAL R EPORT 1999 aeo rpryAdesMncplt erOfc ealW Retail Office year Municipality Address Name ofProperty arkn1Soäggtn57Vxö14 8 0 7 0 6 3 COR COR B 1233 COR 3420 1164 8523 2318 B B — B 6315 COR COR — COR 6787 1967 — 8381 — 7450 — 1555 6640 — — — 200 — COR 1244 B COR COR COR 5751 6315 3508 378 — 1074 COR — — 1612 2165 B COR 385 6 — COR 2674 9092 — 1953 1052 9015 101 — 7450 7952 1555 6640 4251 — — 069 9 — — COR 3713 — — — 485 — — B — — 1962 COR — — COR — — — COR COR — 6944 — 712 1 — 5096 — B — — 10107 7004 COR 1851 14310 — 1942 — 1988 4428 1142 975 12500 B 1985/1989 B — 4348 — 5900 — COR COR — 3359 110 — — 811 5044 — Vaggeryd Växjö 8800 3294 7057 1984 77 — Växjö 70 — 150 1956/1988 — B 1956/1988 — 6230 — — — 170 1 COR — — 755 7 Vaggeryd Vaggeryd — — 592 — 19403 — 1953 1191 — */B — 713 14310 COR B — — — 23420 — 3910 Vaggeryd COR COR Storängsgatan 5–7 733 — 3351 — 5900 — 892 COR — — 1930/1991 9797 COR 2454 — 6 Rådjursvägen 1314 COR Krokvägen1 1956 COR 570 2 419 8800 1966/1978 — 12500 5479 — Jönköping 3401 577 8 386 2 2891 — 1959/1969 Jönköping Källemovägen 21 2302 Jönköping — — — — 6230 — 209 4 — 546 4 1986/1990 — Jönköping 2780 — Ödestuguvägen 42 700 2 Hokvägen6 — 1980 1989 317 1 Fabriken — COR — — Jönköping — 23420 — — Elefanten 3 Jönköping Jönköping — — 1170 — 518 7847 B B — COR — — Yggen 1 1950/1992 COR — COR Skeppsbrogatan 6 38 Huskvarnavägen — — 159 Källemo 1 202 5 4148 — Österängsvägen4 — 1519 1961/1982 8555 — — Gislaved — B Dressinen 4 COR Österängsvägen4 — — COR — — 6022 1946 000 2 Balder 2 10271 1830 — Gislaved — 1946 6597 — 4536 2400 Österbotten 4 500 2 1930/1975 — — — 1985 — 17 12 Ekhagsringen Momarken Gnosjö 346 8577 2386 * 7230 — Vågskålen 8 — 5053 Gnosjö 380 COR — 1963/1991 1978/1990 Alfavägen 4 Vinkeln 17 Gnosjö 321 2 — Gnosjö — — — 1460 — — 2700 — Vinkeln 14 — 26 Mårtensgatan Värnamo 1964/1976 — — Gnosjö — Vattenpasset 2 70 414 — — — Flahult 78:2 — 4861 8106 695 7 — Gnosjö — 25 Kulltorpsvägen 8 Flahult 21:12 Parkgatan — 2361 2225 COR Mobäcksvägen2 016 1 099 2 — — Villstads–Haghult 1:117 5880 10 560 2187 Maråsliden7, 1437 1917/1982 COR Norden 6 750 1 1929 — — 1976 2:51 Törestorp Brogatan19 1350 1991 19008 COR Värnamo 1980 1 561 1 Fabriksgatan 2285 — 19 B Västergatan Värnamo — 2281 Värnamo 1:561 Töllstorp 14-22 Industrigatan COR 193 4 1982 4417 Värnamo Värnamo — — 145 66 960 Marås 1:26,1:12 1989 1960/1989 22319 Värnamo — — 4:116 209 2 Hillerstorp 250 Värnamo 831 5 Jönköpingsvägen41-43 Värnamo 3:106 Hillerstorp 371 — 8/Silkesv 39 Rörläggarev 521 1963/1992 COR — 6 Margretelundsvägen Gårö 1:395 COR — 1968/1988 — 155 1964 5551 204 Värnamo Yxan 6 1956/1990 17285 — 7 Margretelundsvägen Värnamo 1983/1989 Postgatan 3-5 14:11 Värnamo 91 — Runemovägen Värnamo 4 COR 687 1 665 4 — Värnamo — — Takläggaren B 4 Värnamo 4136 COR Växjövägen24-26 — COR — Sjötungan 3 — 1982 Silkesvägen 24 — 190 5 1371 Sandskäddan 4 7540 274 — 1231 Jönköpingsvägen105-107 286 1990 COR Rödspättan 4 Runemovägen 1 417 906 760 Växjö — 938 1 454 1 Ingelundsvägen1 Posten 4 756 9138 6–8 Fabriksvägen — 710 COR COR Mattläggaren 1 — COR — 1966 Växjö 1981 — — 280 39 539 1 14 Linden 3 4 — Kvadervägen — 43446 1749 3537 3 4736 1, Karpen 3907 — 14543 COR 99 Växjö 838 1 282 Växjö 1922/1963 — 4 9481 Flundran — 472 1 — 385 48 — COR 1453 19582 1 Draken 3 Lineborgsplan Vaggeryd — — — 5194 4135 Bor 8:1 320 1971/1990 1992 — 1065 — Bor 1:252 106 2 314 2 1990 25 1407 Jönköping Jönköping 7 Segerstadsv 1929 — WAREHOUSE/INDUSTRIAL 205 353 2308 1983 — Jönköping COR — — 585 118 352 Petris väg32 115 Jönköping Hj. Gnosjö 80 Arabygatan 1991/1993 8–10 Järnvägsgatan 15523 701 1 Total — COR — 105 COR 75 899 Svea 548 5 695 8 116 2876 — — — 5941 Gnosjö 1983 4 Segerstad 3716 195 810 Kompanigatan1–2 Kungsängsvägen7 — 1965/1990 — 748 Glasmästaren 1 850 1 174 10947 479 548 2 240 COR 554 Gnosjö 4 Garvaren 105 Värnamo 1326 1800/1986 Slottsgatan14 — Hästhovsvägen 2 1989 Kronan 1 — — 478 43068 898 1983 985 Jönköping — Vattenpasset 6 5 18 Smedjeg22–24/Borgmästargr 160 Storgatan Värnamo 11903 Värnamo Valutan 11 1962 — — 221 40 1090 8–12 Storgatan — 1982 1990 Vagnmakaren 7 Köpmansgatan9–11 3203 559 Värnamo Droskan 12 Värnamo Värnamo 1987 54 1929/1984 — 14–20/Myntg13mfl Storgatsb 71 — 1–2 Arkadien — 20 490 Expovägen 6 1961 Värnamo Värnamo Gårö 1:27 12 Storgatsbacken 1974 — Gårö 1:221 Värnamo 104 102 4515 — 2 Karlsdalsgatan 20 Margretelundsvägen 469 1971/1989 Värnamo Gårö 1:14 230 484 4 Vindruvan Värnamo 373 1907 — Ringvägen59 15 176 Vindruvan Värnamo 19 Storgatsbacken 1940/1986 1950/1982 1981 Rågen 1 Lasarettsgatan1 1373 Piggvaren 2 10614 2079 Värnamo Värnamo Värnamo Mon 13 1934/1991 1073 Jönköpingsvägen21 Silkesvägen 2 1975/1991 6 Lärkträdet 7/Luddög1 Flanaden3–5 5, Värnamo Köpmansg3, 10 1957/1989 Lejonet 3, Värnamo Lejonet 11 Värnamo 6 Krukmakaren 8 Centrumvägen Boagatan1 Nydalavägen 16 Knekten 15 11 Jungfrun Gillet 1 10 Myntgatan8, Malmövägen12–14 Västbovägen 56 Gamla Gåsen4 1 Drabanten Bor 1:38 Bokbindaren 20 2 Bodarna Almen 9 78 R A SAESCHEDULE ESTATE EAL renovation Build Western Småland 1574 3 2 4 1 3 0 0 333461 107205 231 7611 240 7121 40435 51 567 4—————20—————91028—————2 0446 7487 401COR 308COR 278COR*7—————1 95740—————200368COR 118COR 5————92————19——97—7781 62666 86280————2 0497 378COR 480COR 624COR 003COR8————10————540495COR 2581 668COR Per typeofpremises(sqm) rhueIdsra Resi Industrial arehouse eta te oa au ir Note diary value Total Other dential ses gement assess- etsubsi- ment a Mana- Tax åö14 ömngtn7Goj 93—185 9 9 2 COR 724 499 COR 11040 COR — 829 2 9411 COR — 717 2 291 36097 — 12248 — 1995 — — COR 47 1585 50 11826 074 9 — 1992 COR 7158 — COR COR COR — 158 18375 1948/1990 — 1991 5641 11439 Växjö 1987 4932 — 10705 1991 834 17482 — 6880 222 — 2137 Växjö — Växjö — Växjö 132 1 Växjö — — — 2531 1992 — — G:aRäppevägen26 — 5909 Vaggeryd 421 — 1953 — 1985 545 10705 Kungsvägen61–65 — 1991 Gnosjö Öjabyvägen 43 — Gökvägen5A–U 6880 Gnosjö 895 15 1988 341 Öjabyvägen 45 Total Gislaved 1963 — 1988 1 Skrinet 16107 Skogsvägen 22–26 Jönköping — 192 Gnosjö 16 363 Skogsstjärnan 372 Värnamo 82–90/Kanalg47 Storg Östra Hackan 24 — 1990 — 7 Draken — Köpmansgatan7 1003 58 Järnvägsgatan Värnamo 6 Draken Köpmansgatan25–27 — 1981 1992 1972/1989 Ankaret 1 1050 19 Cigarren 2 Storgatan Gislaved 9 7, 5, 1:140 Hornabo Jönköpingsvägen3, Växjö 1993 Växjö 1962/1987 Flintgatan2,4 Gårö 1:44 1987 Gårö 1:194 SBågg1–3/N7–11 Alvesta Växjö Villstads–Haghult 1:201 Växjö Musslan 2 11 Värnet Smedjegatan10 Håven 1 Annavägen 3 RESIDENTIAL Blädingevägen40 11–13 Isbjörnsvägen 6 Isbjörnsvägen Total Snickaren 12 3 Sjömärket Modellen 9 4 Isbjörnen 5 Illern aeo rpryAdesMncplt erOfc ealW Retail Office year Municipality Address Name ofProperty Värnamo

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C ASTELLUM A NNUAL R EPORT 1999 C ASTELLUM A NNUAL R EPORT 1999 aeo rpryAdesMncplt erOfc ealW Retail Office year Municipality Address Name ofProperty Total Western Småland 70 043 63 629 85 175 85 629 63 COR 043 70 294 850 — COR 70522 — 18297 — — — 850 Vaggeryd — — Gnosjö Gislaved 365 Gnosjö Gnosjö — Gislaved Gislaved Skogsvägen 29 14595 Total Western Småland Värnamo 3337 Värnamo Total 3–9 Carl–Johansgatan Värnamo Skogsmark 1:6 Götastrand Rosendalsgatan4 Brogatan32 13 Carl–Johansgatan 9:54,9:56,9:57 Anderstorp 2–4 Storgatan 9:304 Anderstorp Värnamo 9:281 Anderstorp 1:15 Hornabo Jönköping Myntgatan6 Skogsmark Gårö 1:4 Gårö 1:12 Myntgatan2 1:11 TorpVärnamo Nydalavägen 1–9 14:86 Värnamo 13:308 Värnamo 9–13 VStorgatan ETC LAND UNDEVELOPED Total Ljuset 8 Hotellet 8 PROJECTS 80 Jönköping HISINGSTORP 40 HAGA

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G R E4 t. S ÄNNAVÄGEN ses gement assess- etsubsi- ment a Mana- Tax aeo rpryAdesMncplt erOfc ealW Retail Office year Municipality Address Name ofProperty 20 8 oiln1Kklgtn2Vseå 97172—135———317775APT ASP ASP 7785 8635 ASP ASP 157 3 720 2 2038 ASP 7075 ASP — — 16236 587 9360 243 2 5204 T 948 3 — * — 1142 — ASP ASP — ASP — — 21927 15966 5897 — — 140 6736 544 4 — 1940 108 — — — — 395 1 — — 148 883 — 1229 — — ASP — 739 — 111 — 139 349 975 32164 1762 B ASP 700 — 10555 504 1 447 ASP 056 5 582 910 22514 — 1986 — 1986 1756 — 9347 — 435 — 1957 1977 1400 Enköping — Enköping 660 — — Enköping ASP Västerås 1036 — 1956/1988 1920/1986 — — 11866 5000 1990 Västerås — 729 99 1 1989 Västerås 179 4 4109 Västerås 362 — 1030 — Västerås Kungsgatan39–41 — — Sandbrogatan1 1628 T 1984 1978/1985 ÖRinggatan36 24 7 Total ASP 110 2716 214 1989 — — Munksundet 25:2 Kokillgatan2 Västerås 9076 1991 — ASP Västerås 10438 Tallmätargatan 1 2817 20:3 Korsängen 1964/1986 Västerås B 1977 840 3 21094 750 Västerås Arosvägen32 23:10 Centrum ASP 117 8 Gjutjärnsgatan 1990 ASP 2186 — Västerås 5 Gjutjärnsgatan 545 6 1382 Västerås 8o16 Ringborren — 23514 ASP 7288 Kyrkobacksgärdet 9 Västerås ASP — 439 023 7 1985 Tunbytorpsgatan 10 7621 192 1000 Kokillen 1 055 3 ASP 7171 1988 — 1990 1985 3 Fallhammargatan Kokillgatan1–3 Hjulsmeden 1 — Tunbytorpsgatan 31 Uppsala 370 2 104 1253 1697 9910 ASP — 380 4 — 192 565 7 Gjutjärnet Uppsala Uppsala Uppsala — 8518 13 410 4 Friledningen 1482 — — 687 26 Jonasborgsvägen 75 — ASP 1 Släggargatan 80 3 Fallhammaren 1 — — 575 2 Kokillgatan7 — 1973 29262 Elledningen 4 1991 Axel Johanssonsgata4–6 1966 — — 220 1695 — 345 6 Degeln 1 — — 68 Fyrislundsgatan 67 1985 31 1 Uppsala — 96 Uppsala Dagsländan 11 Uppsala — 1–4 Svederusgatan 1998 — 3060 2 — Blästerugnen — Uppsala Stålgatan8–12 — — 1213 Almen 3 1963 Uppsala 560 430 1620 — 1981 74:3 Årsta — 3280 1990 180 Uppsala 4829 2590 74:1 Årsta — 86 Svartbäcksgatan — Uppsala 2530 72:3 Årsta Örebro 3 675 Sportfältsvägen 1992 85 790 1 1970/1987 60 1 — 325 67:1 Årsta Kungsgatan76 1977 215 19:1 2625 — Svartbäcken — Kungsgatan70 Örebro 2779 Örebro 1960/1983 1865 1979 64:3 Kvarngärdet Örebro Kungsgatan95 182 1977/1988 2050 956 Kungsängen 35:3 Örebro Kungsg/StPersg 1976/1984 Örebro Bolandsgatan20 Kungsängen 29:1 Aspholmsvägen9 310 — Örebro Kungsängen 24:3 1984 1991 Örebro 20:2 Dragarbrunn 11 Radiatorvägen Västhagagatan3 1966 6163 Örebro 35:2 Boländerna Örebro Elementvägen4 13–15 Radiatorvägen Ånsta 20:117 1985 1900/1990 Örebro Elementvägen 16 7 Virkeshandlaren Elementvägen 14 Örebro 10 Virkeshandlaren Örebro Elementvägen12 1 Vindrutan Svetsaren 8 Elementvägen1 Svetsaren 7 2 Firmavägen 1 Svetsaren Radiatorvägen 5 2–4 Fridhemsgatan Svetsaren 4 Boställsvägen10 5 Rörmokaren 1 Motormannen Mosås 4:61 Lantmannen 7 Basen 10 OFFICE/RETAIL Mälardalen Örebro

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C ASTELLUM A NNUAL R EPORT 1999 C ASTELLUM A NNUAL R EPORT 1999 aeo rpryAdesMncplt erOfc ealW Retail Office year Municipality Address Name ofProperty äadln8 6 8204 8 4781 4 6 2 741448 260825 788914 0 1577420 404016 365085 256 1623316 13544 0 2349687 486353 715632 38583 54788 34808 1334 3210 146330 43488 92051 85175 35923 111559 68240 34603 76594 63629 126470 80765 151659 21841 270047 70043 50040 46698 179517 123192 207524 Total Castellum Mälardalen 0 Småland Västra Greater Stockholm The ÖresundRegion 544 13 Greater Gothenburg 788 54 Summary 488 43 240 68 765 80 ASP ASP 4047 2394 ASP 429 1 766 2531 ASP — 824 3599 — 633 1 719 — ASP ASP 696 ASP — 877 — 4651 — 584 — ASP 700 4440 863 251 5 8982 — — — — — Västerås — 6915 — T 710 — ASP — — 70 Örebro 291 3 — — T 2032 ASP 12 ASP — ASP — — 240 7704 * 28546 2370 4340 — T 700 20028 770 ASP 096 8 ASP 1450 T — — 1933/1994 258 7 — Kokillgatan9 955 4833 6400 ASP 1988 — 19273 ASP — 1947/1984 — — Aspholmsvägen3 Total Mälardalen — 1952/1984 910 1 5183 13632 — Köping Enköping 7308 — — ASP Enköping 885 1901/1982 Total 1987 /Glasgatan 8 A–B Hökartorget — 2950 — — — 1929/1984 — 8226 2955 3 Blästerugnen Köping ASP Enköping — Enköping — 120 1989 ASP 2370 Lagerchefen 3 ASP 100 — Enköping 4108 — 7291 ETC ASP LAND — UNDEVELOPED — — 8856 — Enköping 2838 1050 ASP — — — 3121 8912 515 1940/1969 ASP — 5225 4624 258 1 — ÖRinggatan36 46 Nyckelbergsv TotalA–B — 2–12 Hantverkargatan 5972 3845 — 5645 — 7090 1960 Sandgatan35 Odin 1 — ASP 715 1 — 789 3 Köping — — 4350 Bronsspännet 4o5 Enköping — 2275 2950 665 3 Kyrkogatan 16 — 16638 ASP 1988 1650 — — Munksundet 25:3 1974 — 650 1 Kyrkogatan 22 40 100 7 — 176 — — — 12645 — 9:2 4108 Centrum 035 1 Kyrkogatan 32 Köping — — 11170 400 5:4 Centrum — Köping — 3469 28 — A–C — 1475 Kyrkogatan 26, 3270 25:2 Centrum — — 5225 — — 16:1 Centrum 5 Järnvägsgatan 298 550 3 260 1972/1994 1991 — — — 1982 14:5 Centrum — 270 — 1977 — — — 1984 1258 14:12 Centrum Västerås Västerås — Västerås Kungsängsvägen11 RESIDENTIAL — Västerås — 1715 Västerås — — 3 Fabriksgatan 10000 1982 185 1970/1989 3665 1348 — Total 1979 — 950 5 Västerås — — Västerås — Ögir 6 1-9 Ånghammargatan 1991/1995 110 1978/1989 Uppsala Sjötullen 1:9 2–4 Ånghammargatan — 3 Kranbyggargatan — — Gesällen 13 Uppsala 1 Stenbygatan Kranbyggargatan 6 — 1963/1992 Kumla 1963/1986 Ånghammaren 2 1150 Lufthammaren 1 Tunbytorpsgatan 29 Örebro 1987 1170 Örebro Köpmannen 3 3 Barkborregatan 5 Möllersvärdsgatan 1987 Köpmannen 1 Örebro 12 Möllersvärdsgatan 1987 1991 Jordlinan 2 Örebro 1969 Elledningen 1 Örebro Elementvägen13–15 Örebro Radiogatan1 3 Barkborren Aspholmsvägen4 Örebro 38:1 Årsta 36:2 Årsta 10 Söderleden 1 Rörmokaren 1 Rörläggaren 14 Söderleden Radion 2 12 Söderleden 9 Konstruktören 3 Stuvargatan Gällerstavägen 11 Konstruktören 10 Konstruktören 4:9 Gällersta-Gryt Chauffören 2 WAREHOUSE/INDUSTRIAL 82 Uppsala 6 4 5 4 7 3 4 3 5 7 824221917080785 2231911 38274 257071 348238 676 839 250 448 661 041 fieRti aeos nutilRsdnilOhrTtlvalue Total Other Residential Industrial Warehouse Retail Office R

L UT H SCHEDULE ESTATE EAL AG S renovation E Build

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N 46857 16029 0 12154 0 955 2675 245 É

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V A K E4 S A K L U A N G

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Ä G ÅRSTA FYRISLUND N E4 eta te oa au ir Note diary value Total Other dential 6 2 741448 260 825 ses gement assess- etsubsi- ment a Mana- Tax asses- Tax aeo rpryAdesMncplt erOfc ealW Retail Office year Municipality Address Name ofProperty Total Western Småland 62 1 688 66 6 970 3 143 932 12 861 26 733 26 861 12 884 78 932 COR COR 904 3 COR 2418 8960 COR 771 55 COR 143 3 4133 940 7 806 545 6600 2263 970 6 491 1 066 COR 1 — 002 1 401 66 — 584 — 862 4 — 341 5 — — COR 688 1 280 365 163 18 902 1783 473 62 589 2 6600 160 — — 729 — 20 — — — — — — — BRI 200 — — 17811 — 573 280 180 2589 589 0 529 — 20 241 90 — — 221388 — — 63434 20 — 200 2952 1994 66 — HAR 1983 1929/1988 14 52428 465 2885 1991 Värnamo 1957 — — 1922 970 — Värnamo Gislaved HAR 999 62 Jönköping 1930 884 1 HAR Värnamo 2353 Värnamo 20 980 13135 — — 1920/1980 Värnamo HAR 810 013 4 1914 HAR 1564 2709 HAR 465 HAR Värnamo 1934/1993 — 907 — 7634 31500 301 3395 17575 Värnamo 44 HAR Total Castellum 2 Värnamovägen 7 Parkgatan Värnamo 1884 655 9 603 1 Växjövägen1 569 5 — 13895 910 2 Götgatan9 EKL EKL 558 1930/1974 — Total Western Småland — — — 886 3 — Brogatan2 57 Storgatan 31 5287 Önnemo 24, 8274 — 55 Storgatan 92 8:69 — Anderstorp — 101 Malmö 238 99, 881 400 1 97, Storgatan 8805 700 1136 Träsket 2 5277 59 Storgatan 78 EKL Pilen 13 29 — — 724 — — — Malmö 3369 — Lejonet 16 122 Växjövägen14 2743 Gästis 6 025 1 124 1990 — 505 Gästis 5 67 1320 — — — 252 63 834 Gästis 3 — 1973 — — Gästis 2 1969/1991 — Kungälv Linnégatan34 82 1954/1979 — 1970 4 Granen — — 230 T — Odengatan45–47 Western Småland EKL Borås — 393 433 1939/1980 Borås 44 237 1954 47 8 819 170 Borås — Total theÖresundRegion Borås Vakteln — 19 80 — 1953/1995 121 3 Dumparegatan4 Mölndal A Vakteln 17 EKL Borås — The ÖresundRegion — 1966 13279 1961 Mölndal — Tegnersgatan — 9–11 1988 N:aSjöbogatan30–40 3B–C Gråbergsgatan 743 2 Total Greater Gothenburg — 1961 3096 Ventilen 10 Mölndal Mölndal 1945/1986 — Mölndal 72 Skolgatan 39 Sköldskivlingen 6 19 Hedviksborgsgatan Gothenburg Krokslättsgatan2–4 — 1945/1986 Mölndal Maskrosen 12 1987 Gothenburg Göken 2 Gothenburg 508 2 — 74 Falken 7och9 25 57 11 Bojorten — 6 4, Gladiolusgatan2, 27 33 Storgatan 11 Uttern 1929 Tvillinggatan2–4 Kräftan9 3, Skorpionen — Lammevallsgatan42 1929 257 Gothenburg 8 Kräftan Royens Gata2 2, 235 1938 1965 Skorpionen Gothenburg Lundbygatan 3 Gothenburg Gothenburg Lycketegen 1 1965 — Lundbygatan 1 12 Karpen — Lundbygatan 5 Gothenburg Görjelyckan 2 1984 Kyrkbyn 18:8 1965/1985 Gothenburg — Kyrkbyn 18:12 Gothenburg 5 Ingenjörsgatan Kyrkbyn 18:1 3 Ingenjörsgatan Inom vallgraven 46:9 1947/1984 15-17 Klassikergatan Hisingsgatan19 Inom vallgraven 46:8 Gothenburg Poesigatan 4 Brämaregården 28:8 7/ Rörstrandsg 2-4 Värderkvarnsg Temperaturgatan 75-85 Brämaregården 11:19 4 BackaBergögata Biskopsgården 88:2 Backa 7:20 Backa 7:19 Backa 27:15 Greater Gothenburg Properties soldduring1999 Properties R A SAESCHEDULE ESTATE EAL renovation Build ————6051087133—————8248241———————352BRI 640COR————3 117—3 467COR————834—8345 1178—————1—————1 5841 3391 249HAR 270EKL 58410 3397 470EKL 056EKL 8———16———1 496—1 729—2 7945 40571———52———8 678175 183128 303HAR 390HAR 96617 93726 787EKL 452EKL 9——65—276679COR 5————8322 024EKL rhueIndustrial arehouse Per typeofpremises(sqm) 0———1 1402 444EKL eieta te oa au ir Note diary value Total Other Residential 266 284 ses gement assess- etsubsi- ment a Mana- Tax 83

C ASTELLUM A NNUAL R EPORT 1999 C ASTELLUM A NNUAL R EPORT 1999 84 use may type. thereforebefoundwithinaproperty thantheprimary of premises.Smallareasforother purposes The property’s ofareawith regard totype useinterms primary depreciation pershare. Share priceattheyear-end in pershare. Share priceattheyear-end toearnings inproportion tax. maintenance, tenantimprovements, rentandrealestate ground costs,i.e.operatingexpenses, The itemincludesdirectproperty items. financial itemsasapercentageofnet Income beforenetfinancial salesandtax. perty Net incomefortheyear afterreversal ofcapitalgainfrompro- Equity asapercentageoftotalassetsattheendperiod. sed ofhave been excluded entirely. had been owned forthewhole period, dispo- while properties acquiredduringtheyear haveProperties beenrestatedasifthey of rentalvalue owned forproperties attheendofperiod. Rental incomeaccountedforduringtheperiodasapercentage sales. fromproperty ment), andalsoincludingprofits tal andinvestments inaccordancewiththecashflow state- sales(cashflowfrom property beforechangestoworking capi- Cash flow ontwo isreported levels, bothexcluding profits book value attheyear-end. Interest-bearing liabilitiesasapercentageoftheproperties’ prtn xess maintenanceetc. Operating expenses, Income from property management Economic occupancyrate Interest coverage ratio Equity/assets ratio Borrowing ratio Property type P/CE ratio Cash flow P/E ratio proportion to to proportion net incomeplus Definitions and items distorting comparison. and itemsdistorting sales inoperations,andexcluding property normally occurring culated onanannualbasis,disregarding seasonalvariations of average equity. Intheinterimaccounts, yieldhasbeenrecal- itemsminustaxpaidasapercentage Income afternetfinancial comparison. and itemsdistorting sales inoperations,andexcluding property normally occurring culated onanannualbasis,disregarding seasonalvariations of average assets.Intheinterimaccounts,yieldhas beenrecal- itemsminustaxpaidasapercentage Income beforenetfinancial Rental incomeplusestimatedmarket rentforvacant areas. heating costsandrealestatetax. of Rents debitedplussupplements,suchasreimbursement year-end. Proposed dividend asapercentageofthesharepriceat comparison. salesanditemsdistorting perty inoperations,andexcluding pro- occurring variationsnormally been recalculatedonanannualbasis,disregarding seasonal level, including administrationcosts,andatportfolio leasingandproperty fic level,ted forbothatproperty excluding non-property-speci- of undeveloped tage of disposedofhaveperties beenexcluded entirely) asapercen- ted asifthey had beenowned forthewhole year, while pro- acquiredduringtheyear haveperiod (properties beenresta- ownedNet operatingincomeonproperties attheendof comparison. salesanditemsdistorting excludingproperty inoperations,and seasonal variations normally occurring ratios have have beenexcluded entirely. Intheinterimaccounts, been owned acquired duringtheperiodhave beenrestatedasifthey had ownedbased onproperties attheendofperiod.Properties ratios,expressed inSEKpersquaremetre, Property-related the bookvalue attheendofperiod. The bookvalue been recalculatedonanannualbasis,disregarding for thewhole year, disposedof while properties Return ontotalcapital land etc.hasbeenexcluded. Yield isaccoun- such costs.Intheinterimaccounts,yieldhas Return onequity Yield pershare Rental income Rental value SEK/sq.m. Yield Addresses

Castellum AB (publ) (Corporate identity no. 556475-5550) Kaserntorget 5, Box 2269 SE-403 14 Gothenburg, Sweden Tel: +46 31 60 74 00, Fax: +46 31 13 17 55 E-mail: [email protected] Website: www.castellum.se

Castellum’s Website on the Internet at www.castellum.se contains current financial information in the form of interim reports, press releases, and continuous updates of the real estate portfolio and the share price trend. The Website also contains links to the local subsidiaries’Websites with information on vacant rental properties.

Local real estate companies

Aspholmen Fastigheter AB Fastighets AB Brostaden Eklandia Fastighets AB (Corporate identity no. 556121-9089) (Corporate identity no. 556002-8952) (Corporate identity no. 556122-3768) Elementvägen 14 Bolidenvägen 14 Ringögatan 12 SE-702 27 Örebro Box 5013 Box 8725 Sweden SE-121 05 Johanneshov SE-402 75 Gothenburg Tel: +46 19 27 65 00 Sweden Sweden Fax: +46 19 27 42 50 Tel: +46 8 602 33 00 Tel: +46 31 744 09 00 E-mail: [email protected] Fax: +46 8 602 33 30 Fax: +46 31 51 88 08 Website: www.aspholmenfastigheter.se E-mail: [email protected] E-mail: [email protected] Website: www.brostaden.se Website: www.eklandia.se

Fastighets AB Briggen Fastighets AB Corallen Harry Sjögren AB (Corporate identity no. 556476-7688) (Corporate identity no. 556226-6527) (Corporate identity no. 556051-0561) Fredriksbergsgatan 1 Flanaden 3 Flöjelbergsgatan 7 B Box 3158 Box 148 SE-431 37 Mölndal SE-200 22 Malmö SE-331 21 Värnamo Sweden Sweden Sweden Tel: +46 31 706 65 00 Tel: +46 40 38 37 20 Tel: +46 370 69 49 00 Fax: +46 31 706 65 29 Fax: +46 40 29 28 92 Fax: +46 370 475 90 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] Website: www.harry-sjoegren.se Website: www.briggen.se Website: www.corallen.se Graphic design and production: Solberg Kommunikation. Print: Palmebladstryckeri. Printed on MultiArt Silk, a Nordic Swan-labelled and chlorine-free paper. Maps: Copyright, Telia InfoMedia Reklam AB, 1999.