PPI acquires Rigedalen 5 in Kristiansand and a kindergarten portfolio of eight properties

Public Property Invest ASA (“PPI”) has signed an agreement to acquire Rigedalen 5 in Kristiansand for a total property value of NOK 160.8 million from the Njord syndicate Kristiansand Offentlige Eiendom AS. The property is approximately 6,300 sqm and is fully let, of which 83 % to The Norwegian Public Roads Administration. Annual rental income is NOK 11.2 million and the lease is triple net with an unexpired lease term of eight years. The transaction will close on or about 18.12.2024, after and subject to approval of the general meeting of the seller.

PPI has also acquired a portfolio of eight kindergartens from Læringsverkstedet for a total property value of NOK 182.5 million. The properties total approximately 6,750 sqm and is fully let to Læringsverkstedet. Annual rental income is NOK 10.8 million and the lease contracts are triple net with an average unexpired lease term of 35 years. The transaction will close on 13.12.2024.

“PPI’s strategy is to grow by being a leading consolidator of social infrastructure properties in the Nordics. These attractive properties with theirhigh-quality tenants fit our portfolio strategy very well. They will increase the average lease term of our portfolio by approximately 0.5 years and our earnings by approximately NOK 19 million”, says Ilija Batljan, Interim CEO of PPI.

The transactions will be settled through a combination of assuming parts of the existing debt (NOK 50 million, 7 years with swap of 2.27%) and cash, and by issuing new shares in PPI at a share price equivalent to NOK 22,1 per share. The new shares will be issued to the current owners of Njord Syndicate Kristiansand Offentlig Eiendom AS. The settlement share price is 30% higher than the closing price on 10th Dec for the PPI shares.

The total number of new shares to be issued is 815,119. To resolve the issuance of such new shares, the board of directors of PPI has decided to increase PPI's share capital by NOK 40.756 pursuant to the authorisation to increase PPI's share capital granted by PPI's general meeting on 12 April 2024. The dilution effect is 0.4 %.

Following the registration of the share capital increase pertaining to the new shares in the Norwegian Register of Business Enterprises, PPI's share capital will be NOK 10,5 60,438.7 divided into 211,208,774 shares, each with a nominal value of NOK 0.05.

Contact: Ilija Batljan, Interim CEO, [email protected]