Technopolis - Company Announcement

Technopolis Acquires a Campus in Gothenburg and Plans a Rights Issue in Autumn

TECHNOPOLIS PLC        STOCK EXCHANGE RELEASE         May 24, 2016 at 2:15 p.m.

Technopolis Acquires a Campus in Gothenburg and Plans a Rights Issue in Autumn

Technopolis has today signed an agreement with Niam V Gårda AB to acquire a
multi-customer campus in Gothenburg, Sweden. The debt-free purchase price is
SEK 1,177 (ca. EUR 126.6) million. In addition, Technopolis has agreed with the
seller on an additional purchase price of approximately SEK 20 (EUR 2.1)
million based on the realization of expansion potential on the campus. The
acquisition will initially be financed with debt. 

In order to improve solvency after the Gårda campus acquisition, as well as to
fund upcoming organic growth projects and possible future acquisitions,
Technopolis is planning a maximum EUR 150 million rights issue to be executed
in the autumn. The details of the rights issue are still in the planning stages
and the execution of the rights issue will require approval from the company’s
shareholders at an extraordinary shareholders’ meeting. 

The campus to be acquired is located in the Gårda area in the inner city of
Gothenburg with a 15-minute walk to the central station, 25 km from Landvetter
airport. Gårda is the fastest growing office area in the Gothenburg region. The
vacancy rate in the Gårda area and CBD is below 4%, the lowest in Gothenburg. 

The Gårda campus consists of a row of four connected buildings with a total
leasable area of 34,300 m2 . The current occupancy rate is 94%. One of the
buildings was built in 2004 and the other three in 1999. The properties are
served by 155 underground and 35 street-level parking spaces. 

Technopolis CEO Keith Silverang: “We have found a campus with very good
strategic fit that meets our investment criteria. It has a first-rate location,
features good quality, flexible assets and offers good development and
expansion potential. The Swedish economy is doing well and has strong
indicators for both exports and private consumption. The current average GDP
growth in Gothenburg is comparable to Stockholm, and unemployment is slightly
lower. We believe that we can generate value by boosting occupancy, generating
new service revenues and deploying the Technopolis concept, and so increase the
district and campus market value.” 

The net initial yield for the campus is expected to be 5.0% and the stabilized
yield 6.0%. The deal includes an NOI guarantee until 31 December 2017. The
Gårda campus will be reported as part of Technopolis’ Scandinavia segment. The
impact of the acquisition is expected to be approximately +EUR 3.8 million on
net sales and approximately +EUR 3.1 million on EBITDA in 2016. The company’ s
future outlook remains unchanged in the aftermath of this deal. The closing of
the transaction is expected to take place in July. 

In this release the Company has used a foreign exchange rate of EUR/SEK 9.30
which also applies to the net sales and EBITDA estimates. 

For further information about the campus please visit:
www.technopolis.fi/en/garda. 

Technopolis Plc

Additional information:

Keith Silverang
CEO
Tel. +358 40 566 7785

Otso Halsti
Group Investment Officer
Tel. +358 40 763 8083

Technopolis provides the best addresses for success in five countries in the
Nordic-Baltic region. The company develops, owns and operates a chain of 20
smart business parks that combine services with flexible and modern office
space. The company’s core value is to continuously exceed customer expectations
by providing outstanding solutions to 1,700 companies and their 47,000
employees in Finland, Norway, Estonia, Russia and Lithuania. The Technopolis
Plc share (TPS1V) is listed on Nasdaq Helsinki.