Recreate ASA announced that it had entered into an agreement with XG Eiendom AS ("Xania") regarding the establishment of a joint venture which shall own the group's properties Arkaden, Nedre Hjellegate 11, Henrik Ibsens gate 6 and Recreate's properties at Skien Brygge - all located in the Skien area - in addition to Xania's property at Johan Follestads vei 7. In addition, the parties intend that Kongensgate 20 and Hesselberggaten 4 shall be acquired at a later stage. The property contributed by Xania has a net cash position and the joint venture will therefore be financed to further develop the properties. The estimated loan to value ratio of the joint venture is 52% with approximately 86% of debt hedged at a fixed rate.