STOCKHOLM, Sweden, Oct. 17, 2002 (PRIMEZONE) -- Fastighets AB Tornet and Telia (Other OTC:TLAAF), through Telia Fastigheter AB, have reached an agreement on continued long-term collaboration where Tornet remains as one of Telia's main suppliers of office premises. This agreement means that Telia will enter into new tenancy agreements for approximately 55,000 sq.m. at ten locations with a total annual rent of approximately SEK 70 million and an average term of around nine years. These locations are Lulea, Umea, Ostersund, Sundsvall, Gavle, Falun, Uppsala, Vasteras, Karlstad and Norrkoping.
The current agreements, including subletting by Telia of approximately 20 000 sq.m. will continue to apply with unchanged terms for the time being and will be successively replaced by the new agreements apace with Telia's restructuring and the new premises becoming ready. The main focus for the change over to the new agreements will be at the end of 2003 and the end of 2004. The agreements will result in major rebuilding, in the first place, the properties Haren 15 in Lulea, Oskaret 10 in Sundsvall, Kanoten 7 in Karlstad and Kvarnholmen 4 in Norrkoping.
Telia's restructuring will initially lead to some loss of rent for Tornet. This can be estimated at approximately SEK 15 million in 2003. During the period up to 2005, restructuring will enable former Telia premises, mainly in very central locations, to be offered for letting. Discussions and active marketing work have already been initiated at the places in question both as regards new interested parties and Telia's present sub-tenants.
With this agreement, Telia will remain one of Tornet's major tenants of long-term importance. Besides office premises as above, Telia also lease telecom premises at a total rental value of approximately SEK 110 million. The major part of these contracts will run until 31 December 2012.
Fastighets AB Tornet (publ) Sverker Lerheden, Managing Director, +46-8-544 905 00 Britt-Marie Einar, IR Manager, +46-8-544 905 08/+46-70-576 92 08
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