KMC Properties ASA

M&A Activity • Dec 10, 2015

Storm Real Estate ASA - Detailed Announcement regarding sale of Grifon House

Storm Real Estate ASA - Detailed Announcement regarding sale of Grifon House

Storm Real Estate ASA hereby issues a Detailed Announcement

in accordance with the Continuing Obligations of listed

companies section 3.4

1. Transaction and Parties

As announced on 7 December 2015, the Storm Real Estate group

has via subsidiaries agreed a sale on 100% of the shares in

Pete Ltd who owns CJSC Grifon and thus the Grifon Building

in St Petersburg. The buyers are companies of the PSI Cro

group, Switzerland. The parties expect the closing to be

done on 15 December 2015. It is not expected that the

transaction will trigger any statutory obligations or

requirement on either party.

2. The purchase price

The transaction will be done as a sale of receivables

towards group entities and shares in the subsidiary Pete

Ltd. The total consideration is 13.2 million USD, which

implies a gross property value for Storm Real Estate of 14.1

million USD, when liquid assets are subtracted and

recognised deferred tax is added. The settlement is in cash

and without major representation and warranties. Bank

borrowings related to the Grifon House of USD 10.0 million

USD will be repaid as part of this transaction.

3. Further description of the companies and

transaction.

The selling entities Tiberton Yard Ltd and Tiberton Yard

Holding 2 Ltd are wholly owned group companies o the Storm

Real Estate group. Grifon House is an office building in St

Petersburg which is near 100% let to LLC PSI, which is an

affiliated company to the buyer.

Pete Ltd is a holding company without any other business

than the ownership of the shares in CJSC Grifon. Key figures

for the subsidiary CJSC last three years, as they were

recognised in the consolidated group accounts are shown

below (numbers in 000 USD).

Revenues

2014: 2.882

2013: 2.987

2012: 2.984

Annual profit (excl fair value adjustments, building)

2014: 1.029

2013: 760

2012: 501

The board of directors of Tiberton Yard Ltd consists of Erik

M Mathiesen. The board of Tiberton Yard Holding 2 Ltd

consists of Erik Mathiesen, Nataly Nestoros and Suzanne

Kalogreades. There is one person employed by CJSC Grifon.

4. Background and consequences of the transaction

The transaction means that the Storm Real Estate group is

selling a significant asset. The decision for the sale was

an overall assessment of the price, terms, debt and general

economic and political risk. The sale price will be used to

repay debt and provide better security and flexibility for

the company's future operations.

5. About agreements with directors or senior executives in

relation to the transaction

No agreements have been entered into with any related

parties in connection with the transaction.

For further information, please contact:

Erik Mathiesen

Storm Capital Management Ltd.

erik@stormcapital.co.uk

Telefon: +44 (0) 20 7409 3375

Einar Pedersen

Storm Capital Management Ltd.

einar@stormcapital.co.uk

Telefon: +44 (0) 20 7409 3369