Public Property Invest ASA 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 December 18, 2024, after and subject To Approve 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 December 13, 2024. 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.