KMC Properties ASA

Share Issue/Capital Change • May 2, 2016

Storm Real Estate ASA - sale of the company's shares in TK Development A/S

Storm Real Estate ASA - sale of the company's shares in TK Development A/S

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 has decided to

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

After the sale, the remaining business will consist 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 is also of the opinion that the restructuring of

TK Development has been completed, but that this is not

fully priced into the market. For information purposes,

leading shareholders in Storm Real Estate has indicated that

they will take the opportunity to buy shares in TK

Development in connection with this transaction. The company

has indicative interest of the entire holding of shares.

Storm will sell up to 10,865,175 shares in TK Development A

/ S at the highest possible price, minimum DKK 6.00 per

share. The transaction is being conducted as a book-building

where shares made in unit sizes with due consideration of at

least 100,000 Euro (the equivalent of approximately 744,000

DKK). Minimum subscription is set at 100,000 Euros on the

basis of European prospectus regulations.

The process starts immediately and will close no later than

12:00 CET on Wednesday 4 May 2016. Pricing and allocation

will follow shortly after. Information on the result will be

given later. The trading day will be on 6 May 2016.

Buyers will be able to choose between two options and

settlement of payments vs delivery of shares:

First settlement will be an ordinary settlement T+2 and

will take place on 10 May 2016.

Second settlement will be a deferred settlement and will

take place on 27 May 2016.

The reason for the two settlements is to minimize the time

for shareholders in Storm Real Estate ASA between the

purchase of TK shares and proposed dividend. The Board will

propose to the Annual General Meeting on 26 May 2016 that

85% of proceeds from the sale of shares in TK Development

will be

paid out in dividends. If the book is oversubscribed, Storm

Real Estate's shareholders will have preferential rights.

For those who want to buy shares, please contact Swedbank:

Didrik Kjeldahl

Phone: (+47) 23238252

Mobile: (+47) 977488844.

E-mail: Didrik.Kjeldahl@swedbank.no

or

Geir-Henning Ohrvik

Phone: (+47) 23 23 82 04

Mobile: (+47) 90 95 92 58

E-mail: Gho@swedbank.no

For further information, please contact Storm Real Estate

ASA:

Erik M Mathiesen

CEO

Phone: (+44) 207 409 3375

E-mail: erik@stormcapital.co.uk

Tore Andersen

Investor Relations

Phone: (+47) 920 35 908

E-mail: tore@stormcapital.no

This information is subject of the disclosure requirements

pursuant to section 5-12 of the Norwegian Securities Trading

Act.

DISCLAIMER:

NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, TO

U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN OR INTO THE

UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND

POSSESSIONS, ANY STATE OF THE UNITED STATES OF AMERICA AND

THE DISTRICT OF COLUMBIA) (THE UNITED STATES), AUSTRALIA,

CANADA OR JAPAN, OR ANY OTHER JURISDICTION IN WHICH THE

DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL OR WOULD REQUIRE

REGISTRATION OR OTHER MEASURES. THIS ANNOUNCEMENT DOES NOT

CONSTITUTE AN OFFER OF ANY OF THE SECURITIES DESCRIBED

HEREIN.

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN

ISSUED FOR INFORMATION PURPOSES ONLY, AND DOES NOT

CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO

BUY ANY SHARES IN ANY JURISDICTION IN WHICH SUCH OFFER OR

SOLICITATION IS UNLAWFUL OR WHERE THIS WOULD REQUIRE

REGISTRATION, PUBLICATION OF A PROSPECTUS OR SIMILAR ACTION.

THE SECURITIES MENTIONED HEREIN HAVE NOT BEEN, AND WILL NOT

BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF

1933, AS AMENDED (THE "SECURITIES ACT"). THE SECURITIES MAY

NOT BE OFFERED OR SOLD IN THE UNITED STATES EXCEPT PURSUANT

TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE

SECURITIES ACT. COPIES OF THIS ANNOUNCEMENT ARE NOT BEING

MADE AND MAY NOT BE DISTRIBUTED OR SENT INTO AUSTRALIA,

CANADA, JAPAN OR THE UNITED STATES.

THE DISTRIBUTION OF THIS RELEASE MAY IN CERTAIN

JURISDICTIONS BE RESTRICTED BY LAW. PERSONS INTO WHOSE

POSSESSION THIS RELEASE COMES SHOULD INFORM THEMSELVES ABOUT

AND OBSERVE ANY SUCH RESTRICTIONS. ANY FAILURE TO COMPLY

WITH THESE RESTRICTIONS MAY CONSTITUTE A VIOLATION OF THE

SECURITIES LAWS OF ANY SUCH JURISDICTION. THE MANAGER IS

ACTING FOR THE COMPANY AND NO ONE ELSE IN CONNECTION WITH

THE SALE OF SHARES AND WILL NOT BE RESPONSIBLE TO ANYONE

OTHER THAN THE COMPANY FOR PROVIDING THE PROTECTIONS

AFFORDED TO THEIR RESPECTIVE CLIENTS OR FOR PROVIDING ADVICE

IN RELATION TO THE SALE OF SHARES AND/OR ANY OTHER MATTER

REFERRED TO IN THIS RELEASE.