Balder acquires properties for more than SEK 4,000 million and issues ordinary shares of Class B

NOT FOR DISTRIBUTION OR RELEASED, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED
STATES, CANADA, AUSTRALIA, JAPAN OR ANY OTHER JURISDICTION, IN WHICH THE
DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.
Fastighets AB Balder (publ) (“Balder”) has entered into an agreement to acquire
all the properties in the I.A Hedin Fastighet AB group from Anders Hedin Invest
AB. The agreed value of the properties will amount to SEK 4,150 million after
completion of ongoing new and re-constructions. The lettable area amounts to
290,000 square meters and is fully leased primarily to the Hedin Bil group on
triple net lease agreements. The average maturity of the leases is in excess of
11 years and the initial annual rental income amounts to SEK 276 million. The
vast majority of the property value is located in Stockholm and Gothenburg. The
remaining property value is located in, among others, Malmö, Helsingborg,
Jönköping, Linköping and Uppsala.

The Hedin Bil group is a family owned business founded in 1985. The Hedin Bil
group had a turnover in 2015 of over SEK 8 billion with approximately 1,200
employees and offers car sales, service and supplementary services. The Hedin
Bil group is a dealer of among others, Mercedes-Benz, Nissan, Kia, Ford,
Citroën, Opel, Mitsubishi and Jaguar (www.hedinbil.se).

Partial payment for the acquired properties will be paid to Anders Hedin Invest
AB through a set-off issue of 4,602,515 ordinary shares of Class B amounting to
SEK 1,098,950,000. The set-off issue will be decided based on the authorization
given by the Annual General Meeting on May 10, 2016. Through the set-off issue,
Anders Hedin Invest AB, will become one of Balder’s largest shareholder. The
subscription price in the set-off issue will amount to approximately SEK 239 per
Class B ordinary share, representing the volume weighted average price of
Balder’s Class B ordinary share during the period from August 29, 2016 until
September 16, 2016.

The Anders Hedin Invest group comprise, in excess of the Hedin Bil group, of the
Klintberg & Way group with the subsidiaries KW Parts, Dawa Däck, KW-Wheels,
Techno Tires, KW Cars, Pro-Imp and Wheelspot and in addition, Mabi Hyrbilar, Car
to Go Sweden and Hedin IT. The Anders Hedin Invest group’s turnover is
approximately SEK 11 billion per annum and has 1,750 employees
(www.andershedininvest.se).

Balder has, based on the authorization given by Annual General Meeting on May 10
2016 in addition engaged Carnegie Investment Bank to investigate the conditions
for a private placement of over 3 million Class B ordinary shares through a so
-called “accelerated book-building” procedure.

The closing of the acquisition is planned for November 30, 2016. The acquisition
of the properties is subject to Competition Authority approval and financing.

– We are pleased to complete this acquisition of high quality and well-located
properties that complement Balder’s existing property portfolio well. We
simultaneously welcome Anders Hedin as a new larger shareholder of Balder, says
Erik Selin CEO Balder.

– I have, over a long time, with great commitment and energy built up this
property portfolio and it is with both pride and confidence that I now let
Balder take over as owner. I am also pleased that, at the same time, take part
of Balder’s continued development as a large and long-term shareholder, says
Anders Hedin.

For further information, please contact:
CEO Erik Selin, +46 706 074 790 or
CFO Marcus Hansson, +46 768 369 848

This information is information that Fastighets AB Balder (publ) is obliged to
make public pursuant to the EU Market Abuse Regulation. The information was
submitted for publication, through the agency of the contact person set out
above, at 05:31 pm CET on September 19, 2016.

Important information

This press release does not constitute an offer, or a solicitation of any offer,
to buy or subscribe for any securities in Fastighets AB Balder (publ) in any
jurisdiction, neither of Fastighets AB Balder (publ), Carnegie Investment Bank
AB (publ) or any other party. Copies of this announcement are not being made and
may not be distributed or sent into the United States, Australia, Canada, Japan
or any other jurisdiction in which such distribution would be unlawful or would
require registration or other measures. The recipient of this press release is
responsible for using the information in this press release in accordance with
the applicable law in each jurisdiction.

In any member state within the European Economic Area (“EEA”), that has
implemented Directive 2003/71/EC as amended (together with any applicable
implementing measures in any member State, the “Prospectus Directive”), this
communication is only addressed to and is only directed to investors in that EEA
member state who fulfill the criteria for exemption from the obligation to
publish a prospectus, including qualified investors, within the meaning of the
Prospectus Directive as implemented in each such EEA member state.

This announcement and the information contained herein are not for distribution
in or into the United States. This announcement does not constitute an offer to
sell, or a solicitation of an offer to purchase, any securities in the United
States. Any securities referred to herein have not been and will not be
registered under the U.S. Securities Act of 1933, as amended (the “Securities
Act”), and may not be offered or sold within the United States absent
registration or an applicable exemption from, or in a transaction not subject
to, the registration requirements of the Securities Act. There will be no public
offering of the securities described herein in the United States.

This announcement and any other materials in relation to the securities
described herein are only directed to (i) persons who are outside the United
Kingdom or (ii) to investment professionals falling within Article 19(5) of the
Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the
“Order”) or (iii) high net worth companies, and other persons to whom it may be
lawfully communicated, falling within Article 49(2)(a) to (d) of the Order (all
such persons in (i), (ii) and (iii) above together being referred to as
“relevant persons”). The securities described herein are only available to, and
any invitation, offer or agreement to subscribe, purchase or otherwise acquire
the securities will be engaged in only with, relevant persons. Any person who is
not a relevant person should not act or rely on information contained herein.

Fastighets AB Balder is a listed real estate company which shall meet the needs
of different customer groups for premises and housing through local support.
Balder’s real estate portfolio had a value of SEK 77.5 billion as of 30 June
2016. The Balder share is listed on NASDAQ Stockholm, Large Cap segment