Balder completes a directed issue of 3 million Class B ordinary shares, raising proceeds of approximately SEK 690 million

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, based on the authorization granted
by Balder’s Annual General Meeting on 10 May 2016, resolved to carry out a
direct share issue of 3,00,633 Class B ordinary shares at a subscription price
of SEK 230 per share (the “Issue”). Through the Issue, Balder will receive
proceeds amounting to approximately SEK 690 million. The subscription price in
the Issue has been determined through a so-called “accelerated book-building”
procedure led by Carnegie Investment Bank. Subscribers in the Issue are a wide
range of Swedish and international institutional investors. The reason for
deviation from the shareholders’ preferential rights is to diversify the
shareholder base and at the same time raise capital in a time efficient manner,
in immediate connection with the announcement of the acquisition of all the
properties in the I.A Hedin Fastighet AB group.

The Issue result in a dilution of approximately 1.7 per cent in relation to the
number of existing ordinary shares in in Balder through an increase in the
number of outstanding shares to 175,397,485 (divided into 11,229,432 Class A
shares and 164,168,053 Class B shares). Through the set-off issue in connection
with the closing of the acquisition of all the properties in the I.A Hedin
Fastighet AB group, which is planned to occur on 30 November 2016, the number of
Class B ordinary shares will increase with 4,602,515 and hereafter together with
the Class B shares from the Issue amount to 168,770,568 and the total number of
ordinary shares outstanding will amount to 180,000,000. In addition, Balder has
10,000,000 preference shares outstanding.

In order to facilitate the delivery of shares to the investors in the Issue,
Erik Selin Fastigheter AB will lend 3,000,633 Class B shares to Carnegie
Investment Bank AB. The shares will be returned after the Issue has been
registered with the Swedish Companies Registration Office.

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 08:30 am CET on September 20, 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.