Recreate ASA — Capital/Financing Update 2023

Sep 26, 2023

Recreate ASA: Completion of joint venture establishment and a three-year extension of credit facilities

Recreate ASA: Completion of joint venture establishment and a three-year extension of credit facilities

Porsgrunn, 26 September 2023: Reference is made to the stock exchange announcements by Recreate ASA ("Recreate" or the "Company") on 14 March 2023, where the Company announced that it had entered into an agreement regarding the establishment of a joint venture, and 8 May 2023, where it was announced that the conditions for establishment of the joint venture were fulfilled. Today, the parties are pleased to announce that closing of the transaction has been completed and relevant creditor approvals have been obtained. As part of this process, the main credit facilities in the portfolio of the joint venture have been extended to Q4 2026.

Prior to completing the establishment of the joint venture, Recreate and Xania Group AS ("Xania"), agreed certain amendments to the agreement, resulting in the joint venture owning the properties previously contemplated, being Arkaden, Nedre Hjellegate 11, Henrik Ibsens gate 6, Hesselberg gate 4 and Kongens gate 20, and now also the properties at Kjelleveien 21 (3 buildings) and 50 % of Dokkvegen 20, in addition to Xania’s contribution, which is properties and cash to the joint venture.

The joint venture, RCR Property Group AS, is established as a holding company which owns the shares in the company owning properties, acting as the joint vehicle for further development and management of the properties.

"Our partnership with Xania provides us with necessary liquidity and a strengthened financial platform which allow us to navigate the group through a challenging market cycle. Through our jointly owned company RCR Property Group AS, we will refine our strategy of being a property developer with a geographic foothold in selected areas of Vestfold and Telemark. While our core focus will be on property development, we will continue to ensure good operation of the properties during the project phase in order to optimise values", says Emil Eriksrød, CEO of Recreate.

“Xania is excited about the prospect of partnering with Recreate to establish RCR Property Group. The unique knowledge and expertise of the people of Recreate, coupled with Xania´s dedication to long-term investments, creates an attractive foundation for future value creation”, says Pål Sørvang Winter, CEO of Xania.

For further information, please contact:

Emil Eriksrød, CEO

emil.eriksrod@recreate.no

+47 415 22 463

Company in brief: Recreate ASA is a full-service real estate company focused on the development, ownership and management of centrally located and sustainable commercial properties. Visit the company's website at www.recreate.no.