Agat Ejendomme

M&A Activity • Feb 26, 2014

Company announcement no. 3/2014

Aalborg, Denmark, 2014-02-26 14:39 CET (GLOBE NEWSWIRE) --

Summary:

-- TK Development has conditionally sold its 75 % stake in the Fashion Arena
Outlet Center in Prague, the Czech Republic.
-- The Fashion Arena Outlet Center consists of 110 stores covering a total
floor space of 25,000 m².
-- The outlet centre has been sold to Meyer Bergman, at a selling price for
the whole outlet centre of EUR 71.5 million.

Fashion Arena Outlet Center in Prague sold to Meyer Bergman

TK Development has developed and managed the Fashion Arena Outlet Center
together with LMS Outlets Limited. TK Development's ownership interest in the
outlet centre represents 75 %.

The Fashion Arena Outlet Center was a two-phase development, with the first
phase of 18,000 m² opening in November 2007 and the second of 7,000 m² opening
in October 2010.

The 25,000 m² outlet centre consists of 110 stores, and the current occupancy
rate is 96 %. The cen­tre has a broad mix of tenants, including Tommy Hilfiger,
Nike, Adidas, Benetton, Tom Tailor, Ecco, Gant, Lacoste, Levi Strauss & Co.,
Desigual, Puma, Guess, Calvin Klein and Esprit.

Together with LMS Outlets Limited, TK Development has today entered into a
conditional sales agreement with Meyer Bergman. The sale is contingent on the
final financing arrangement, which is expected to fall in place shortly. The
selling price for the outlet centre amounts to EUR 71.5 million, which results
in a minor profit relative to the carrying amount, a reduction of the balance
sheet total by about DKK 400 million and a substantial contribution to free
cash resources.

The sale is part of Management’s strategy to sell one or more major projects.

Meyer Bergman is a privately held real estate investment management firm
headquartered in London, UK, which specializes in retail real estate. Meyer
Bergman's current acquisition efforts are focused on well located, defensive
assets in the UK, Germany, France, the Nordic region, Poland, and the Czech
Republic. Typical transaction values range between EUR 30 million and EUR 300
million.

Meyer Bergman manages two closed-ended funds – Meyer Bergman European Retail
Partners I launched in 2007 and Meyer Bergman European Retail Partners II
launched in 2012 – on behalf of third-party institutional investors, including
leading pension funds, endowments, and asset managers from North America and
Europe.

TK Development maintains its profit forecast for the 2013/2014 financial year.

Contact information:

TK Development A/S, Frede Clausen, President and CEO, tel. +45 8896 1010