KMC Properties ASA

Share Issue/Capital Change • May 10, 2016

Storm Real Estate ASA - Sale of firm's shares in TK Developments A/S

Storm Real Estate ASA - Sale of firm's shares in TK Developments A/S

Reference is made to the notifications on 02/05/2016 and

04/05/2016 regarding sale of the company's shares in TK

Developments A/S.

Due to the size of the transaction the company gives this

Detailed Announcement cf Oslo Stock Exchange continuing

obligations section 3.4.

Storm Real Estate ASA has sold its entire shareholding of

10,865,175 shares in TK Developments A/S at the price of DKK

6.25 per share. Total proceeds are DKK 67,907,334.

The proceeds from the sale has two settlements of payment

and delivery:

5,151,075 shares (DKK 32,194,219) have settlement date

10/05/2016.

5,714,100 shares (DKK 35,713,125) have settlement date

27/05/2016.

Description of TK Developments A/S, including company's

Board of Directors and management, number of employees, key

figures etc., are available in TK Developments annual

report, published on 01/04/2016:

http://www.tkdevelopment.dk/2016-7063.aspx

Importance of the transaction for the company:

The Board has decided to streamline its investment areas as

a strategy to bring out the underlying values of the

company. As part of this strategy, the Board decided to sell

its stake in TK Development A/S (Denmark).

After the sale, the remaining business consists of direct

ownership of investment property in Russia, with an

interesting Russia platform and attractive property in

Moscow. The proceeds from the sale will be used to increase

the company's working capital and the Board will also

propose distribution of capital to the company's

shareholders. The Board proposes to the Annual General

Meeting on 26 May 2016 that 85% of the proceeds from the

sale of shares in TK Developments will be paid out as

dividends. It is proposed to the General Meeting a dividend

of NOK 3.80 per Storm Real Estate share.

As part of the transaction, Board Member Morten E. Astrup

has via company Aconcagua Management Ltd bought 1,269,800

shares in TK Development. Board Member Kim Mikkelsen has via

companies Strategic Capital APS and Strategic Investment A/S

bought a total of 1,869,800 shares in TK Development.

For further information, please contact Storm Real Estate

ASA:

Erik M Mathiesen

CEO

Phone: (+44) 207 409 3375

E-mail: erik@stormcapital.co.uk

Einar Pedersen

CFO

Phone: (+44) 207 409 3369

E-mail: einar@stormcapital.co.uk