Heimar hf.: Agreement on the Purchase of Gróska by Heimar

Heimar hf. ("Heimar" or "the company") has reached an agreement on main terms for the purchase of all shares in Gróska ehf. ("Gróska") and Gróðurhúsið ehf. ("Gróðurhúsið").

Gróska owns the property Gróska at Bjargargata 1, 102 Reykjavík, a community of innovation and one of the largest and most ambitious office buildings in the country. The property is approximately 18,600 m² in size, along with a 6,200 m² underground parking garage with 205 spaces, totaling about 24,800 m². Gróðurhúsið operates a startup center and workspace in the property.

The total value of the transaction is estimated at ISK 13.850 million, which includes the value of the property and Gróðurhúsið. The transaction will involve the takeover of the bond series GROSKA 29 GB. The series is indexed and carries an interest rate of 1.20%. The market value of the bond series at Heimar's interest rates is ISK 4 billion. The purchase price is expected to be paid entirely by issuing and delivering 258 million new shares in Heimar.

Heimar's management estimates that the impact of the purchase on the company's annual EBITDA will be ISK 780 million following the transaction.

The agreement is subject to various conditions, including shareholder meeting approval, due diligence results, final documentation, approval from the Competition Authority.

Gróska Innovation House is a hub of innovation in Iceland. Gróska is a community where entrepreneurs, companies, government, investors, and educational institutions come together and leverage their connections. In Gróska, an environment is created for individuals and companies where ideas become reality amidst a rich cultural and social life.

Among the tenants in Gróska are the game developer CCP, the American software company NetApp, the Science Park of University of Iceland, World Class, Íslandsstofa, and numerous other companies at the forefront of Icelandic innovation. The unique location of Gróska, the quality of the building, its proximity to the scientific community in Vatnsmýri, and the diverse social life are among the reasons why Heimar is interested in acquiring the property.

The developers and owners of Gróska will become the largest shareholders in Heimar after the purchase.

Halldór Benjamín Þorbergsson, CEO of Heimar: "Heimar's purchase of Gróska will lead to increased value for the company's shareholders. The purchase fits well with the company's portfolio and aligns with the company's vision of creating strong core areas. It is also very gratifying to welcome new and powerful private investors into Heimar's shareholder group, who will further strengthen our international connections and opportunities to develop the company further."

Birgir Már Ragnarsson, Chairman of Gróska and co-owner of Omega: "Gróska was an ambitious project from the beginning, and we are very proud of how it has turned out. There is now a direct connection between Gróska and innovation in Iceland, and the community that resides there has an independent and creative life. In our discussions with Heimar, we have been convinced that Gróska is in very good hands, as the leaders there share our vision and conviction about the purpose and importance of the building for Icelandic society. We, the owners of Omega, have long followed Heimar and see significant opportunities for further development and growth of the company. Heimar's strategy of focusing on key properties in desirable locations aligns with what we have seen in major cities abroad. The trend among large real estate companies internationally has been towards strong cores where owners look to the long term regarding the vision and development of areas. Such real estate portfolios have been sought after by investors, for example, in the Nordic countries and Northern Europe. With Gróska's contribution to Heimar and the purchase of a significant ownership stake, we are securing our place in that journey and entering as long-term investors in the company. We believe that our experience, connections, and knowledge will help those plans, and look forward to the collaboration."

At Heimar's annual general meeting, which will be held on March 11, a proposal will be presented to authorize the board to issue new shares in Heimar to settle the proposed transaction.

Further details of the transaction will be provided at later stages as appropriate and in accordance with the company's statutory information disclosure.

LEX law firm is Heimar's advisor in the process and LOGOS slf. is the Gróska and Gróðurhúsið shareholders‘ advisor .

For more information, contact Halldór Benjamín Þorbergsson, CEO of Heimar, at 821 0001.