Subsidiaries of Hepsor AS signed loan agreements for the realisation of Manufaktuuri quarter development projects

Hepsor  Phoenix 3 OÜ and  Hepsor Phoenix 4 OÜ,  companies belonging to Hepsor AS
Group, signed loan agreements with AS LHV Bank on 12 September in a total amount
of  40.3 million euros to finance the  realisation of two development projects -
Manufaktuuri  Factory Phase  I and  Manufaktuuri 12 -  in Tallinn's Manufaktuuri
quarter.

Hepsor  Phoenix 3 OÜ  signed loan  agreements in  a total amount of 33.3 million
euros to finance the construction of the first phase of the Manufaktuuri Factory
at  Manufaktuuri 5b. In addition, a construction contract valued at 33.3 million
euros  was signed with Mitt  & Perlebach OÜ. In  the first phase of the project,
152 new  homes will be built  with a total sales  area of 10,420 m². Preparatory
works  for  the  construction  started  in  the  second  quarter  of  2024, with
construction scheduled to be completed in the fourth quarter of 2027.

The Manufaktuuri Factory is the largest development project in Hepsor's history.
It is part of the comprehensive regeneration of a former industrial area and the
creation  of a new,  diverse and modern  urban space, providing future residents
with a unique combination of historic ambience and modern living.

'The  Manufaktuuri Factory is a special project,  not only in our portfolio, but
also  in the context of Tallinn. The Manufaktuuri Factory gives character to the
whole  quarter and is  the heart of  the future campus.  Our goal is to create a
building   that   is   technically  state-of-the-art,  durable,  and  meets  the
expectations  of  a  forward-looking  living  environment,'  said  Mihkel Mäger,
Hepsor's Country Manager for Estonia.

In  addition, Hepsor Phoenix 4 OÜ and AS  LHV Bank signed a 7 million euros loan
agreement  to finance  the residential  development project  Manufaktuuri 12, in
Tallinn,  at  the  address  Manufaktuuri  12. Construction works started in July
2025, when  the  construction  contract  was  signed with Mitt&Perlebach OÜ. The
project  consists of two apartment buildings with a total of 49 apartments and a
total  saleable area of 3,090 m(2). Construction  is scheduled for completion in
the second half of 2026.

The  Manufaktuuri  quarter  is  being  developed  by  Hepsor in partnership with
Tolaram  Group. To date, 421 homes have been  completed in the Sitsi Õunaaed and
M7 developments, of which 96% have been sold.

The  signing  of  these  loan  and  construction  agreements  marks an important
milestone for both Hepsor and the entire Manufaktuuri quarter development, which
will  result in the construction of 201 new  homes per quarter over the next two
years.

Martti Krass
Member of the Management Board
Phone: +372 5692 4919
E-mail:  [email protected]  (https://www.globenewswire.com/Tracker?data=i-EyQ9hO-
iXPTFtJysLkGmxAeC7t5yhl-
hXRSZ1f7x_JZqtOz0uJ82NHXRMBEV0qxUqIOUblUntZzPsPC5JiBC344CCLn8QthMwC2m-qVy0=)

Hepsor                             AS                             (www.hepsor.ee
(https://www.globenewswire.com/Tracker?data=PEj8ic9ob1AYieNletj9Afc8n477Spmkxg0b
U8DEeZ1yGV-1QdVYdcIqSCzH-qlKSV7YGs-SFQ0SRJLXhkom8A==))   is   a   developer   of
residential  and commercial real  estate. The Group  operates in Estonia, Latvia
and  Canada. During our fourteen years of operation, we have created 2,076 homes
and nearly 36,300 m(2) of commercial space. As the first developer in the Baltic
countries,  Hepsor has implemented several  innovative engineering and technical
solutions that make the buildings built by the company more energy-efficient and
thus  more environmentally friendly. The company's portfolio includes a total of
25 development projects with a total area of 178,200 m(2).