Pioneer Property Group ASA

Contemplated new unsecured bond issue in Pioneer Public Properties AS and summon for bondholder meeting in Pioneer Public Properties II AS

Pioneer Public Properties AS (the "Company"), a 100% owned

subsidiary of Pioneer Property Group ASA, is contemplating

to issue a new NOK 800-1,000 million unsecured bond with

maturity May 2021.

The net proceeds from the contemplated bond issue shall be

employed to repay existing financial indebtedness of the

Company and its subsidiaries, including the outstanding

bonds in the Company's two subsidiaries Pioneer Public

Properties II AS (ISIN NO0010674377) and Pioneer Public

Properties III AS (ISIN NO0010714124) and for general

corporate purposes. Pioneer Public Properties III AS has a

call option at 104% of par value (plus accrued interests)

from 27 June 2016, whereas Pioneer Public Properties II AS

will shortly summon to a bondholders' meeting to propose a

new call option at 105.75% of par value (plus accrued

interests). The proposal for the call option has received

confirmation from more than 2/3 of the bondholders who

support the proposal.

Pareto Securities AS has been engaged as manager for the

contemplated bond issue. The private placement for the bond

issue is to commence on 7 June. A company presentation

prepared for the contemplated bond issue is available at

www.pioneerproperty.no.

For further information, please contact:

Pioneer Property Group ASA

Runar Rønningen, CEO

+47 90690038

Martin P. Hoff, CFO

+47 47214721

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