Oslo, 3 June 2024: Public Property Invest ASA ("PPI") has, on 21 May 2024, submitted a bid to the board and shareholders of Terningen Invest AS ("Terningen") for the acquisition of up to 100% of the shares in Terningen.

Terningen owns, through subsidiaries, Terningen Arena Elverum, which consists of 27,000 sqm of land and 20,700 sqm of buildings. The Ministry of Education and Research is the largest and most important tenant, and the property currently generates total annual rental income of approximately NOK 57.5 million. Many of Terningen's shareholders are also shareholders in PPI, and PPI's objective with the bid is to strengthen its portfolio with an attractive property, while allowing Terningen's shareholders to continue as shareholders in PPI. PPI has secured sufficient external debt financing, and therefore Terningen's shareholders will also benefit from PPI's low loan-to-value ratio. Further, Terningen's future refinancing needs will be relieved.

The bid had the following main conditions:

- Property value of NOK 819 million. PPI assumed customary balance adjustments, and the preliminary estimated equity value amounted to NOK 130,000,000. The price per share would thus be approximately NOK 13,000 per share. The last trading of the share (approximately 6% of the shares in Terningen) took place last week at approximately NOK 10,000 per share.

- It was proposed that the purchase price be settled by issuing shares in PPI at a price of NOK 16.5 per share.

- It was assumed that PPI would be granted access to due diligence and that Terningen's lender would approve the transfer.

- The bid was rejected by the board of Terningen Friday, 31 May 2024. PPI believes that this is a transaction opportunity that has several advantages for Terningen's shareholders and that the shareholders of Terningen should get the opportunity to consider the bid. If a transaction is completed on the conditions set out above, Terningen's shareholders would gain access to:

- A market-based valuation,

- Security for future financing needs,

- Continued exposure to real estate in a low-leverage property company, with mainly public tenants, dividend capacity, and a liquid share.

Based on the above, PPI will contact Terningen's shareholders to request that one or more shareholders in Terningen (in accordance with Article 11 of its Articles of Association) who together own 25% or more of the company's shares, demand a sales process in accordance with the same provision. If Terningen's shareholders make such a decision, PPI will stand by the bid on the conditions mentioned above, provided that PPI has been granted access to an exclusive transaction process by 15 June 2024. Depending on the final transaction structure, a final offer may also be subject to the publication by PPI of an offering prospectus.

Questions related to this announcement can be directed to:

For further queries, please contact:

Ilija Batljan, interim CEO, ilija@publicproperty.no

About PPI

Public Property Invest was established in 2021 by SBB and Arctic Securities with a long-term strategy of owning, operating, and developing socially beneficial property in Norway. Sustainable property management is an integral part of Public Property Invest's business.

Its portfolio of properties is characterized by strong tenants within the public sector, such as the police, judiciary functions and public health organizations, on long lease contracts and a high occupancy rate.

Public Property Invest's portfolio consists of more than 368,000 sqm across 61 properties which had an aggregate estimated value of around NOK 9,976 million as of 31 December 2023. It has more than 125 public tenants in 26 cities. Hundreds of subcontractors ensure that its tenants can fulfil their important societal missions every day.

In the medium to long term, Public Property Invest is expected to generate NOK 690 million in normalised run-rate rental income, of which public tenants constitute approximately 92 per cent. The company intends to be an active consolidator in the market. With a strong balance sheet, it pursues an opportunistic growth strategy.