During the months of May and June, Bostads AB Drott sold three residential properties to tenant-owner associations for a total of SEK 111 M. The sales generated an accounting gain of SEK 29 M. The divested properties, which are located in Stockholm municipality, have been sold at an average price that exceeds by 32 percent their independently appraised values at year-end 2003. The properties have total rentable space of 5,320 square meters, of which 4,388 sq. m. is residential space.

Thus far this year, Bostads AB Drott has sold 12 properties for a total of SEK 561 M. The sales have been completed at prices that exceeded the properties' estimated market values by 24 percent and resulted in an aggregate capital gain of SEK 112 M, of which SEK 55 M is reported during the second quarter.

Comment from Bostads AB Drott President Daniel Skoghäll: "There is a great deal of interest among tenant-owner associations in buying residential properties, as underscored by the...