Pioneer Property Group ASA

Capital/Financing Update • Jul 1, 2016

Bond Defeasance - Pioneer Public Properties AS 14/19 FRN C (ISIN NO0010714124)

Bond Defeasance - Pioneer Public Properties AS 14/19 FRN C (ISIN NO0010714124)

In accordance with clause 18.2 'Bond Defeasance' in the Loan

Agreement for the above mentioned bond issue dated 25 June

2014, Pioneer Public Properties III AS (the Issuer) has

elected to have several obligations discharged by creating a

defeasance pledge. The effect of the discharge is that the

Issuer is released from all its obligations under Clause 13

in the Loan Agreement except for certain reporting

obligations. The defeasance pledge implies that the Issuer

has pledged to the Bond Trustee, for the benefit of the

Bondholders, an amount of cash sufficient to cover the

payment of principal, the premium payable upon exercise of

the Call Option as announced on 23 June 2016 and interest on

the Outstanding Bonds until the settlement date of the Call

Option. The obligations of the Issuer under the Loan

Agreement will be discharged with effect from 1 July 2016.

Contacts:

Pioneer Property Group ASA

Runar Rønningen, CEO

+47 90690038

runar@pioneerproperty.no

Martin P. Hoff, CFO

+47 47214721

martin@pioneerproperty.no