Recreate ASA signs agreement to establish joint venture

14 Mar 2023 06:47 CET

Porsgrunn, 14. March 2023: Recreate ASA ("Recreate" or the "Company") is pleased
to announce that it has today 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, Xania will contribute with its commercial property by way of a sale
and conversion of the seller's credit into new shares in the joint venture. The
property company contributed by Xania also has a net cash position and the joint
venture will therefore be financed to further develop the properties. In
addition, the parties intend that, Kongensgate 20 and Hesselberggaten 4 shall be
acquired at a later stage, provided relevant creditor approvals are obtained.

The joint venture will be a holding company owning shares in the companies which
own the properties and act as the joint vehicle for further development and
management of the properties. The parties will own the company 50/50, but with a
preferential economic right for Xania to receive an agreed interest rate before
other distributions. The Company will not sell shares or contribute any
additional capital as part of the establishment.

The establishment of the joint venture is subject to certain conditions,
including satisfactory completion of each of the parties' due diligence. The
parties intend for the joint venture to acquire additional properties in the
future and aim to make it the leading real estate developer in Skien.

The Company will provide an update as soon as closing has been completed.

For further information, please contact:

Emil Eriksrød, CEO
emil.eriksrod@recreate.no
+47 415 22 463

Eirik Engaas, CFO
eirik.engaas@recreate.no
+47 934 99 340

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