KMC Properties ASA

Storm Real Estate ASA - changes of terms in loan agreement

The company's lender has in its credit committee on 31/03/2017

granted amended terms to the company's loan agreement.

The amended terms include

- postponement of the maturity date to June 2019

- no amortisation up to and including Q3 2018

- waiving of covenants up to and including Q3 2018,

- adjusted covenants for the period Q4 2018 to maturity, adapted to

the changed market conditions in Russia.

These amendments are subject to that the company obtains new capital

of at least USD 3 million, to be paid to the bank as an

extraordinary amortisation within 15/07/2017. The amendments are

also subject to documentation.

These amended terms provide the company with better visibility and

ability to meet its loan obligations. The agreement with the anchor

tenant in the Gasfield building expires on 31/05/2017, and the

company is in process of sourcing new tenants.

The company has interest from new potential tenants who

appreciate the building's location, standard and parking facilities.

The company will publish signing of new contracts if they are of a

material character.

The Board will make a proposal for raising capital to the

shareholders in a General Meeting.

For further information, please contact:

Einar Pedersen

Tel: +44 207 409 3369

Morten E. Astrup

Tel: +44 777 8888 0000

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