Colony Real Estate Sweden Holding announced on July 3, 2024 that Colony Real Estate, through the subscription of shares using its pro rata share and acquired subscription rights in the rights issue that has been carried out by Fleming Properties and which was announced on May 29, 2024, has subscribed and awarded 23,162,440 newly issued shares in Fleming Properties. Through the subscription and allocation of the newly issued shares, Colony Real Estate has achieved a total ownership of 24,478,684 shares in Fleming Properties, corresponding to an ownership share of approximately 37.40 percent of the total number of shares and votes in the Company after the implementation of the Rights Issue. Colony Real Estate thereby crossed the limit of bid obligation under the Takeover rules for certain trading platforms issued by the Stock Market Self-Regulatory Committee.

Colony Real Estate offers SEK 5 per share in Fleming Properties. The total value of the Offer, based on the 40,971,316 shares not owned by Colony Real Estate, amounts to approximately SEK 205 million. The offer values ​​Fleming Properties, based on all 65,450,000 shares in Fleming Properties, at approximately SEK 327 million.

The price for each share in the Offer corresponds to a premium/discount if (2):

Approximately -3.85 percent relative to the Spotlight Stock Market closing price of SEK 5.20 on June 25, 2024 (which was the last trading day prior to Fleming Properties' announcement that Colony Real Estate would reach the bid threshold)

Approximately 0.70 percent relative to the volume weighted average paid price on the Spotlight Stock Market of SEK 4.97 over the past 20 trading days ending June 25, 2024 (which was the last trading day prior to Fleming Properties' announcement that Colony Real Estate would reach the limit of obligation to bid);

Approximately -2.91 percent relative to the Spotlight Stock Market closing price of SEK 5.15 on July 2, 2024 (which was the last trading day prior to the announcement of the tender obligation);

Approximately -1.51 percent relative to the volume-weighted average paid price on the Spotlight Stock Market of SEK 5.08 over the past 20 trading days ending July 2, 2024 (which was the last trading day prior to the announcement of the tender obligation);

Approximately -13.79 percent relative to the closing price on the Spotlight Stock Market of SEK 5.80 on July 29, 2024 (which was the last trading day prior to the announcement of the Offer); and

Approximately -11.72 percent relative to the volume weighted average paid price on the Spotlight Stock Market of SEK 5.66 over the last 20 trading days ending July 29, 2024 (which was the last trading day prior to the announcement of the Offer).

An offer document regarding the Offer is expected to be published today, July 30, 2024. The acceptance period for the Offer is expected to start on July 31, 2024 and end on August 28, 2024.

Fleming Properties is a Swedish property company that indirectly owns the properties Vallilan Toimisto, Ässäkeskus and Ässäparkki in central Helsinki, consisting of two office buildings and an underground garage. The buildings are environmentally certified according to BREEAM-in-use. The company's ambition is to be an active property owner by managing and developing the properties in close connection with its tenants in order to support the tenants' operations. The buildings were constructed in 1920 and 1991, respectively, and renovated in 2020 and 2023, respectively. The properties are centrally located in Vallila in Helsinki, and have a rentable area of ​​approximately 41,000 square meters.

Colony Real Estate was formed in 2021 and is wholly owned by Colony Real Estate. Colony's business concept is to provide green, hybrid offices in the Helsinki office market (Helsinki Metropolitan Area), with a particular strategic focus on eight office clusters in the CBD, Leppävaara, Keilaniemi (Tapiola), Ruoholahti, Pasila, Vallila, Pitäjänmäki and Kalasatama districts. Colony aims to make better use of the office buildings that already exist and make them more sustainable. This is achieved by offering modern, attractive and future-proof offices that meet tenants' future needs in a sustainable manner where sustainability improvements are carried out within existing office stock instead of spending resources on new construction. Through acquisition, refinement and long-term ownership of the office properties, Colony Real Estate is gradually building up a unique portfolio with environmentally certified properties and customer benefit in focus.

Colony Real Estate has been a shareholder in Fleming Properties since 2022 and has supported Fleming Properties' operations and development throughout its ownership. Colony Real Estate has, among other things, entered into a management agreement with the Company with the aim of adding resources linked to letting, management and property development as well as strengthening Fleming Properties