K-Fast (KFAST) M&A Announcement summary

Deal rationale and strategic fit

• Significant geographic overlap in the Öresund Region and southern Sweden, enabling a focused footprint and strengthened operating leverage.

• The deal more than doubles Brinova's property value to SEK 19.2bn, creating a leading Swedish residential real estate company.

• K-Fastigheter divests its Region Syd portfolio, representing 75% of its total investment portfolio by market value.

• 65% of acquired properties were built after 2019, supporting portfolio quality.

• New Brinova will focus on residential and community service real estate, while New K-Fastigheter will focus on property development.

Financial terms and conditions

• Brinova acquires 108 properties from K-Fastigheter, valued at SEK 10.8bn (MSEK 10,760), paid in up to 137.4m newly issued Brinova shares at SEK 32.46 per share.

• The share consideration is capped at 27.0m A shares and 110.4m B shares, reflecting Brinova's current share structure.

• K-Fastigheter will control up to 58.4% of Brinova's capital and votes post-transaction.

• Pro forma NAV of New Brinova is SEK 7.5bn, with a net LTV of 60.5%.

• K-Fastigheter intends to distribute Brinova shares to its shareholders, likely no earlier than its 2026 AGM.

Synergies and expected cost savings

• Economies of scale and operating leverage are expected from high geographical and portfolio overlap.

• The combined entity will focus on stable returns and secure cash flows from strategic city concentrations.

• Initial cost increase for central administration anticipated to be limited.