Recreate ASA — M&A Activity 2023

Mar 14, 2023

Recreate ASA signs agreement to establish joint venture

Recreate ASA signs agreement to establish joint venture

Porsgrunn, 14. March 2023: Recreate ASA ("Recreate" or the "Company") is pleased to announce that it has today 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, Xania will contribute with its commercial property by way of a sale and conversion of the seller's credit into new shares in the joint venture. The property company contributed by Xania also has a net cash position and the joint venture will therefore be financed to further develop the properties. In addition, the parties intend that, Kongensgate 20 and Hesselberggaten 4 shall be acquired at a later stage, provided relevant creditor approvals are obtained.

The joint venture will be a holding company owning shares in the companies which own the properties and act as the joint vehicle for further development and management of the properties. The parties will own the company 50/50, but with a preferential economic right for Xania to receive an agreed interest rate before other distributions. The Company will not sell shares or contribute any additional capital as part of the establishment.

The establishment of the joint venture is subject to certain conditions, including satisfactory completion of each of the parties' due diligence. The parties intend for the joint venture to acquire additional properties in the future and aim to make it the leading real estate developer in Skien.

The Company will provide an update as soon as closing has been completed.

For further information, please contact:

Emil Eriksrød, CEO

emil.eriksrod@recreate.no

+47 415 22 463

Eirik Engaas, CFO

eirik.engaas@recreate.no

+47 934 99 340