Entra has today announced in a press release a significant increased valuation. The updated valuation increases the value of Entra's property portfolio by 8.1 percent to NOK 56.5 billion, from NOK 51.8 billion as presented in the third quarter report. This represents a value improvement of NOK 23 per share compared to book values as of 30.9.20, adjusted for minority interests and investments in the period. Entra's EPRA NRV was NOK 162 per share as of 30.9.20. The net yield on Entra's portfolio with the updated valuation is around 4.5%.

The rationale for the value increase is mainly attributed to lower yields in the transaction market. SBB would like to point out that there has been only a limited number of relevant transactions, and that these transactions include fair value adjustments of amongst other deferred tax and financial derivatives – corresponding to the EPRA NNNAV methodology reported in Q3 2020 at NOK 147 per share.

The updated valuation is not in line with past practice and, in SBB's view, not in line with the Norwegian market development in general. The new information submitted creates uncertainty in terms of historical reporting of Entra. This historical reporting forms the basis for SBB's bid and SBB does not longer have sufficient comfort to rely on historical reporting from Entra.

SBB would like to stress that it has not been granted access to detailed information in connection with the due diligence as Entra has restricted access with reference to SBB being a competitor in the Norwegian market (SBB's Norwegian portfolio consists mainly of kinder gardens, elderly care, LSS and locations where Entra is not present). Thus, SBB has not received a fair treatment and opportunity to satisfy the due diligence requirements.Based on the above, SBB regrets to inform that the due diligence condition to the Offer will not be satisfied or waived and the Offer will thus lapse.