Porsgrunn, 26 September 2023: Reference is made to the stock exchange
announcements by Recreate ASA ("Recreate" or the "Company") on 14 March 2023,
where the Company announced that it had entered into an agreement regarding the
establishment of a joint venture, and 8 May 2023, where it was announced that
the conditions for establishment of the joint venture were fulfilled. Today, the
parties are pleased to announce that closing of the transaction has been
completed and relevant creditor approvals have been obtained. As part of this
process, the main credit facilities in the portfolio of the joint venture have
been extended to Q4 2026.
Prior to completing the establishment of the joint venture, Recreate and Xania
Group AS ("Xania"), agreed certain amendments to the agreement, resulting in the
joint venture owning the properties previously contemplated, being Arkaden,
Nedre Hjellegate 11, Henrik Ibsens gate 6, Hesselberg gate 4 and Kongens gate
20, and now also the properties at Kjelleveien 21 (3 buildings) and 50 % of
Dokkvegen 20, in addition to Xania's contribution, which is properties and cash
to the joint venture.
The joint venture, RCR Property Group AS, is established as a holding company
which owns the shares in the company owning properties, acting as the joint
vehicle for further development and management of the properties.
"Our partnership with Xania provides us with necessary liquidity and a
strengthened financial platform which allow us to navigate the group through a
challenging market cycle. Through our jointly owned company RCR Property Group
AS, we will refine our strategy of being a property developer with a geographic
foothold in selected areas of Vestfold and Telemark. While our core focus will
be on property development, we will continue to ensure good operation of the
properties during the project phase in order to optimise values", says Emil
Eriksrød, CEO of Recreate.
"Xania is excited about the prospect of partnering with Recreate to establish
RCR Property Group. The unique knowledge and expertise of the people of
Recreate, coupled with XaniaŽs dedication to long-term investments, creates an
attractive foundation for future value creation", says Pål Sørvang Winter, CEO
of Xania.
For further information, please contact:
Emil Eriksrød, CEO
emil.eriksrod@recreate.no
+47 415 22 463
Company in brief: Recreate ASA is a full-service real estate company focused on
the development, ownership and management of centrally located and sustainable
commercial properties. Visit the company's website at www.recreate.no.