Oslo, 18 December 2020: Pioneer Property Group ASA's wholly owned subsidiary Pioneer Property Group International AS ("PPGI") has today entered into an agreement (the "Agreement") with Kinland Finland Oy (the "Buyer") regarding the sale of all of the shares in PPGI's wholly owned subsidiary PPG Netherlands Holding B.V. ("PPGNH") (the "Transaction"). PPGNH has subsidiaries in the Netherlands, Poland and Sweden, which again respectively own a portfolio of 12 preschool properties in said countries.
Total enterprise value for the portfolio comprised by the Transaction is approximately EUR 18.7 million, sold on a debt and cash free basis and subject to customary working capital adjustments and adjustments for certain dispositions carried out in 2020.
The Kinland group ("Kinland") is the owner of key social infrastructure assets in the Nordic region. The acquisition of the preschools in the transactions described herein will bring Kinland's portfolio to 208 preschools and 8 care homes across Norway, Finland, Sweden, Poland and The Netherlands. Pioneer Property Group ASA ("PPG") owns 10% of Kinland's parent company, Odin Bidco AS. In order to, among others, partly finance the transaction described herein, a share issue in Odin Bidco AS directed towards its shareholders will be carried out, in which PPG has committed to invest NOK 40 million to retain its 10% ownership.
Closing of the Transaction is expected to take place in December 2020, subject to execution of lease agreements for the properties comprised by the Transaction with operating companies within the Norlandia Health & Care Group and certain other customary conditions.
PPG will continue to be an investment company with a real estate focus and will continue to invest in real properties and enter into long-term leases with government-backed tenants in Europe.
Advisors:
Advokatfirmaet Thommessen is acting as PPGI's legal advisor.
Advokatfirmaet Wiersholm is acting as Kinland's legal advisor.
For further information, please contact:
Ole-Kristofer Bragnes, CFO
Telephone: +47 917 03 415
E-mail: IR@pioneerproperty.no