Lehto Group Oyj - Company Announcement

Lehto Group Oyj: Lehto and Northern Horizon have signed a frame agreement on construction and sale of health care premises

Lehto Group Plc Stock Exchange release 16 December 2016, 3:30 p.m. EET

Lehto and Northern Horizon have signed a frame agreement on construction and
sale of health care premises

Lehto Group Oyj's subsidiary Rakennusliike Lehto Oy ("Lehto") and a health care
premises fund managed by Northern Horizon ("NHC") have today signed a frame
agreement on construction and sale of health care premises. The aggregate value
of the frame agreement is approximately EUR 57 million and it consists out of
16 separate health care premises throughout Finland. The frame agreement
includes also an option for building more premises later. NHC will acquire the
premises to its Nordic Aged Care fund.

Construction and selling health care premises to funds is the ordinary business
of Lehto but according to the frame agreement the premises will be constructed
and sold to the fund in a bigger amount by a single deal. Lehto will build the
premises and sell them to the fund after completion and when other agreed
requirements are met.

The construction of some premises has already started. Mainly the premises will
be completed within 2017 but some of them during the first quarter of 2018. The
financing of the construction will be organised by Lehto by using both equity
and debt.

The premises will be built for elderly care, child care and for other groups
with special needs. The users of the premises will be both the communal sector
operators and nationwide service providers.

The frame agreement does not have an effect on Lehto's financial outlook for
2016.

Further information:

Veli-Pekka Paloranta, CFO, tel. +358 400 944 074, veli-pekka.paloranta@lehto.fi




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