KMC Properties ASA has agreed to acquire seven properties from BEWI ASA for NOK 625 million, at a gross yield of 8.75 per cent. The transaction is funded by approximately NOK 290 million in bank debt with an interest margin of 1.25%, NOK 275 million in new equity, and NOK 60 million in available liquidity. The new equity investor, Nordika, is a large and strategic Nordic investor.

Following the transaction, the overall interest margin will be reduced to 3.04%, compared to 3.32% at the end of the second quarter 2023. The agreed acquisition of seven properties (the Properties) represents the last part of the agreement between KMC Properties and BEWI ASA to acquire an industrial real estate portfolio of up to NOK 2 billion. Please refer to the stock exchange announcement made by KMC Properties on 30 June 2022 for further details.

In connection with completion of the purchase agreements, long-term triple net rental agreements will be entered into for the properties with a WAULT of 17 years and 100 % CPI adjustments (50 % CPI adjustment 1 January 2024). The properties are located in Belgium, Germany, and Poland. The transaction will be financed by a new bank loan provided by Nordea Denmark and equity from Nordika, a Swedish unlisted real estate company owned by Nordic pension funds and institutions.

The bank loan will be secured against parts of the Danish portfolio which are currently pledged in KMC Properties? senior secured 23/26 bond. The Danish properties will be sold from the bond portfolio and replaced by the Properties acquired in this transaction.

Debt: Nordea provides a long-term credit facility of DKK 193 million at 1.25 % plus fixed CIBOR, bringing KMC Properties? overall interest margin from 3.32% at the end of the second quarter 2023 to 3.04%. Equity: Nordika subscribing for 50,000,000 new shares (the ?New Shares?) at a subscription price of NOK 5.50 per share (the Private Placement), representing approx.

12.7% of the shares outstanding in KMC Properties post issuance of the new shares, raising gross proceeds of NOK 275 million. Available liquidity: cash on hand, and/or short-term credit facility, and/or new equity. In addition, provided the Private Placement is completed, Nordika has been granted a call option to subscribe for and be allotted additional new shares in KMC Properties for a total amount of NOK 130 million at a subscription price of NOK 5.75 per share.

The call option may be exercised until four months from the time when the New Shares in the Private Placement are delivered to Nordika's VPS account. By exercising the call option, Nordika has the possibility to further increase its ownership in KMC Properties to approx. 17.4%.