Technopls Ventures Ltd. — M&A Activity 2013

Oct 11, 2013

Technopolis to Acquire Campus in Oslo

Technopolis to Acquire Campus in Oslo

TECHNOPOLIS PLC STOCK EXCHANGE RELEASE October 11, 2013, at
13:05

Technopolis to Acquire Campus in Oslo

Technopolis has today signed an agreement with IT Fornebu Properties AS (ITFP)
to jointly acquire a modern multi-tenant campus for an enterprise value of NOK
1,800 (approximately EUR 220*) million in the greater Oslo region, Norway.

The campus will be owned by a joint venture (JV) of Technopolis and ITFP. The
JV will be capitalized by 35% in equity and 65% in debt. The JV will be 70%
owned by Technopolis and 30% by ITFP. Technopolis equity investment in the JV
will amount to NOK 441 (EUR 54) million.

In addition to the equity contribution by Technopolis and ITFP of NOK 630 (EUR
77) million, the JV will finance the remaining 65% of the acquisition with a
syndicated loan from SEB, Nordea and Swedbank.

The campus is located in the Fornebu area six kilometers west of Oslo CBD in
Baerum municipality. Fornebu is an established and also one of the fastest
growing workplace and residential areas in greater Oslo. The head offices of
large Norwegian corporations such Telenor and Aker Solutions as well as the new
Statoil regional headquarters are located in Fornebu. Fornebu is also an
attractive and growing residential area with a large stock of recently
constructed housing and ongoing residential and retail development.

The Fornebu campus consists of two new buildings and one fully refurbished
property, all of which are served by an underground parking facility with 1,200
spaces. The campus has total rentable area of 70,500 sqm and the financial
occupancy rate is 90%.

Technopolis CEO Keith Silverang: “This acquisition is a big step forward in the
realization of our growth targets and our aim to diversify our campus portfolio
geographically. The Norwegian economy is doing well, the Fornebu district is on
the rise and the campus is an excellent strategic fit. We believe the district
and campus market value can rise and we feel we can generate value by boosting
occupancy, generating new service revenues and deploying the Technopolis
concept. We are also happy to have a strong local partner who knows the campus
inside out, and is committed to its long-term, successful development.”

The net initial yield for the campus is expected to be 6.7% and the stabilized
yield is expected to exceed 7.7%. The net market yield of the property is 6.4%.
Technopolis will consolidate 100% of the JV's financials into its financials
statements. The Group net sales and EBITDA impact of the acquisition is
expected to be approximately EUR 19.3 - 20.1 million and EUR 14.5 - 15.1
million respectively in 2014.

In connection with the transaction Technopolis has agreed with ITFP on an
option to acquire an additional 15,000 - 25,000 sqm of office building rights
from a neighboring land plot which is owned by ITFP and which is to be re-zoned
over the coming five years.

As part of the deal ITFP has a put option to have Technopolis acquire their
shares using a predetermined pricing mechanism 3 - 5 years from the closing of
the deal. Technopolis in turn has a call option to acquire ITFP's shares using
a predetermined pricing mechanism 5 - 7 years from the closing. Thereafter, the
parties have the right to offer to acquire the other party's shares in the JV.
In case the party receiving the acquisition proposal does not sell its shares,
such party has an obligation to acquire the shares of the party who made the
acquisition proposal.

The partner ITFP is a Norwegian real estate company with nine shareholders, led
by a Norwegian State-owned The Industrial Development Corporation of Norway.
The JV will inherit an experienced team. Technopolis will take on ten ITFP
employees currently responsible for managing the campus.

The closing of the transaction is expected to take place by the end of December
2013 and it will have no material impact on Technopolis' 2013 net sales and
EBITDA growth guidance, which remains at 14%-17% compared to the previous year.

* In this release the Company has used a foreign exchange rate of EUR/NOK 8.19
which also applies to the net sales and EBITDA estimates

Further information about the campus please visit:
www.technopolis.fi/fornebu-en.

Technopolis Plc

Keith Silverang
CEO
Tel. +358 40 566 7785

Sami Juutinen
Director, International Operations
Tel. +358 40 484 7487

About Technopolis

Technopolis Plc is a listed real estate company that specializes in leasing
space and providing services. Its core business idea is to combine business
support services with modern, flexible, multi-user business environments. There
are approximately 26,000 people and almost 1,400 companies and organizations in
Technopolis premises in Finland, Russia, Estonia and Vilnius. The company's net
sales for 2012 totaled EUR 107.3 million and its EBITDA was EUR 55.8 million.
The Technopolis Plc share (TPS1V) is listed on NASDAQ OMX Helsinki.

Distribution:
NASDAQ OMX Helsinki and Oslo
Main news media
www.technopolis.fi