PPI acquires Strandgaten 229 in Bergen

Public Property Invest ASA (“PPI”) has signed an agreement to acquire 82.6% of the shares in the Njord Syndicate Bergen Etatbygg AS which owns the property Strandgaten 229 in Bergen. The transaction is based on a total property value of NOK 330 million. The property is approximately 8,750 sqm and is fully let to the government agency Directorate of Fisheries. Annual rental income is NOK 26 million and the lease contract has an unexpired lease term of six years.

“PPI’s strategy is to grow by being a leading consolidator of social infrastructure properties in the Nordics. This is a very attractive property located seaside at Nordnes in central Bergen, next to Bergen Aquarium. The transaction is done on an attractive yield and we look forward to welcoming the Directorate of Fisheries as one of our customers”, says Ilija Batljan, Interim CEO of PPI.

The transactions will be settled through a combination of assuming existing debt of NOK 226 million with a fixed interest rate of 3.6 %, cash and by issuing 3,895,051new shares in PPI at a share price equivalent to NOK 17.4598 per share. The new shares will be issued to the current owners of the Njord Syndicate, Bergen Etatbygg AS.

To resolve the issuance of the new shares, the Board of Directors of PPI has today, resolved to increase PPI's share capital by NOK 194,752.55 pursuant to the authorisation to increase PPI's share capital granted by PPI's general meeting on 12 April 2024.

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 10,755,191.25  divided into 215,103,825 shares, each with a nominal value of NOK 0.05, taking into account the agreed share capital increase in connection with the acquisition of Rigedalen 5 in Kristiansand, as announced on 12 December 2024. On the same basis, the dilution effect for existing shareholders is 1.8%.

The transaction closed today on 19 December 2024 and the new shares are expected to be delivered to the sellers by year end 2024. The transaction in connection with the acquisition of Rigedalen 5 in Kristiansand is expected to be closed tomorrow, 20 December 2024.

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