Recreate ASA - M&A Activity 2023 | FinancialReports.eu

Recreate ASA: Conditions for establishment of joint venture fulfilled

Porsgrunn, 8 May 2023: Reference is made to the stock exchange announcement by Recreate ASA ("Recreate" or the "Company") on 14 March 2023, where the Company announced that it had entered into an agreement with XG Eiendom AS ("Xania") regarding the establishment of a joint venture which shall own the group's properties Arkaden, Nedre Hjellegate 11, Henrik Ibsens gate 6 and Recreate's properties at Skien Brygge - all located in the Skien area - in addition to Xania's property at Johan Follestads vei 7. In addition, the parties intend that Kongensgate 20 and Hesselberggaten 4 shall be acquired at a later stage. The property contributed by Xania has a net cash position and the joint venture will therefore be financed to further develop the properties. The estimated loan to value ratio of the joint venture is 52 per cent with approximately 86 per cent of debt hedged at a fixed rate.

Recreate is pleased to confirm that the conditions for establishment of the joint venture have been fulfilled. The parties will move forward with the transaction as soon as possible and confirm as soon as closing has been completed.

For further information, please contact:

Emil Eriksrød, CEO

[email protected]

+47 415 22 463

Eirik Engaas, CFO

[email protected]

+47 934 99 340