Pioneer Property Group ASA

M&A Activity • Sep 15, 2016

Acquisition of additional nine properties

Acquisition of additional nine properties

Pioneer Property Group ASA ("The Company") has entered into

agreement, through its subsidiary Pioneer Public Properties V AS,

to acquire nine additional properties at a total property value of

MNOK 188. The majority of the properties have been acquired from

Norlandia Care Group. Total annual rental income is MNOK 12.2 and

the financial transfer of rights, including title to properties and

rental income, will be effective immediately. The portfolio has

MNOK 44 in existing debt, and the net purchase price will be

financed from the current cash reserves in Pioneer Public

Properties AS. However, the Company in in the process of sourcing

additional bank financing, which should reduce the equity portion

of the acquisition within the near future. Eight of the properties

are pre-schools, with five located in Norway, two in Finland and

one in Sweden. The last property an elderly-care home in Sweden.

All the properties have long-term, triple-net, lease contracts with

Norlandia Care Group. The properties therefore have similar

characteristics to the Company's existing portfolio of pre-schools,

and the purchase also marks the first step into the Swedish and

Finish markets in line with the company's previously communicated

strategy plan. In conjunction with the transaction, all the

properties have been valued by an independent valuation company and

have also been treated as a related party transaction in respect of

the Company's controlling shareholders.