BoStad has through its wholly-owned subsidiary BoStad Holding ApS, entered into four share transfer agreements regarding acquisition of 100 percent of the share capital in the following companies, which own four residential projects under construction, from Birch Ejendomme (via the companies Birch JB Holding ApS and Birch KF Holding ApS, respectively):

# Birch JB Brunbakkevej 3 Holding ApS, CVR no. 40 08 35 02, Birch JB Brunbakkevej 4 Holding ApS, CVR no. 40 07 79 28 and Birch JB Brunbakkevej 5 Holding ApS, CVR no. 40 09 85 50 (Project Vimmerbyvej),

# Birch JB Hviidsminde Holding ApS, CVR no. 39 93 12 81 (Project Hviidsminde),

# Birch KF Kobbelvænget 2 Holding ApS, CVR no. 40 01 70 62, and Birch KF Kobbelvænget 3 Holding ApS, CVR no. 40 01 71 19 (Project Copper Wings II and III) and

# Birch JB Tegl4 Holding ApS, CVR no. 40 05 82 73 (Project Tile 4).

The four housing projects under construction add 46,293 square meters, spread over a total of 469 leases, to BoStad's portfolio. Two of the properties are located in Silkeborg and the other two are located in Kolding and Vejle respectively.

The projects are expected to increase revenue in the BoStad Group by up to DKK 51 million. per year. The purchase price for the projects is based on an agreed property value of a total of DKK 879.6 million, which is subject to customary adjustments. The purchase price is expected to be financed with mortgage and foreign financing and customary financing reservations have been agreed.

The acquisition of the four housing projects is in line with BoStad's strategy to expand and improve the quality of residential properties in Danish regional growth cities.

The transfers will be finalizedas the individual projects are completed. Closing of the individual transfers is expected to take place (a) 1 September 2020 (Project Vimmerbyvej), (b) 2 November 2020 (Project Hviidsminde), (c) 1 December 2020 (Project Kobbelvænget II and III) and (d) ) March 1, 2021 (Project Tile 4).

At the same time, BoStad's subsidiary, BoStad Holding ApS has entered into an agreement with Birch Ejendomme (via the company Birch Holbæk Holding ApS) on the sale of the shares in BoStad DS 6 ApS, which owns a building plot in Holbæk with a duty to construct a total of 8,500 m2 housing. The agreement allows for an additional purchase price to BoStad upon resale of the project to third parties, however BoStad may be required to repurchase the project at an agreed price of DKK 242.3 million.

The company's expectations for profit for 2019/2020, before fair value adjustment and tax, remain unchanged.