Project Westfield

STRICTLY CONFIDENTIAL

INVESTMENT MEMORANDUM

PROJECT West fi eld

ONLY AVAILABLE UPON SIGNED NDA

2 Introduction

4 Investment highlights 6 Property description

CONTENTS

PROJECT WESTFIELD

32 Danish economy macro 34 Danish lease legislation 36 About K-Fastigheter

24 Financial overview 26 Operating budget 30 Transaction structure

38 Transaction

advisory team

39 Disclaimer

1

PROJECT WESTFIELD

4 TOTAL ASSETS 24,989 SQ M TOTAL GLA 312 + PARKING TOTAL UNITS 36,176,732 TOTAL NOI

2019-2023 YEAR OF CONSTRUCTION

2

PROJECT WESTFIELD

INTRODUCTION

Colliers is delighted to present the exclusive investment opportunity Project Westfield, an exceptional residential portfolio strategically situat ed in close proximity of Copenhagen. The portfolio encompasses a sub stantial 24,989 sq m of gross leasable area (GLA), spanning four newly con structed rental properties. Each property has been meticulously designed with the preferences of contemporary urban residents in mind. Three of the four properties are fully operational and generating income, and the last property is scheduled for completion by Q4 2023. Project Westfield represents an unparalleled residential investment opportunity, offering access to the highly sought-after Danish residential market and promising substantial exposure for astute investors. The transactions will be structured as share deals.

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PROJECT WESTFIELD

Investment highlights

Location in Greater Copenhagen

Rent potential

Structural shift towards renting

The properties are located in major suburban areas and offer excellent opportunities due to their proximity to Copenhagen. Investors can ben efit from the demand for housing from individuals who prefer to live outside the city but still have easy access to its amenities and job op portunities. The area’s proximity to Copenhagen ensures a steady rent al market, providing a reliable in come stream for property owners.

The consistent demand and dynam ic nature of the residential market in the areas of the properties allows for rent increases without the need for extensive refurbishment costs. The optimal location, the modern amenities and growing demand for properties in the area create an ide al opportunity for reletting at signif icantly higher prices. By harness ing this rental potential, investors can achieve a significant increase in monthly earnings and maximise their return on investment.

The steady increase in ownership values over an extended period cou pled with restricted availability and stricter lending regulations have contributed to a transition within the Danish residential market, that is, an increasing preference for rent al housing over ownership.

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PROJECT WESTFIELD

Cash flow security

High volume

Attractive unit mix

Three out of the four properties in the portfolio are currently fully oc cupied except for a few units where natural terminations have occurred and reletting has commenced. The properties therefore offer a steady and reliable cash flow. Further, the portfolio has considerable potential for additional value through sub stantial growth in rental income upon reletting. One of the proper ties is currently under construction and is scheduled for completion in Q4 2023. The letting process has al ready commenced, and 82 out of the 148 flats were successfully let in the first three weeks.

The Portfolio offers an attractive scale with 312 residential units, comprising a total of 24,989 sq m. The residential units range from 54 sq m to 130 sq m, reflecting a well-diversified selection of units across the Portfolio that appeals to all types of households. Project Westfield is a truly rare opportunity to gain immediate access to signifi cant scale in the residential market close to Copenhagen.

With a well-balanced unit mix and sizes ranging from 54 sq m to 130 sq m, the portfolio strategically tar gets a diverse range of tenants, in cluding professionals, young fam ilies and seniors seeking modern housing at affordable rental prices.

5

PROJECT WESTFIELD

6

PROJECT WESTFIELD

Emiliehaven Skjeberg Allé Trylleskoven Solviften The Properties

7

PROJECT WESTFIELD

8

PROJECT WESTFIELD

Emiliehaven

ADDRESS Torbenfeldvej 2 and Vejlegårdsvej 53 DK-2665 Vallensbæk Strand

Emiliehaven consists of 95 newly constructed rental dwellings that are located in multiple buildings on Torbenfeldvej. Located in a prime location near Vallensbæk Strand and in a family-friendly neighbourhood, the project embodies a vision centred around pub lic space interaction, fostering a strong sense of community and open-mindedness. Further, the property benefits from its proxim ity to Vallensbæk’s recently built swimming facility, an S-train sta tion and excellent shopping options. Both sides of Vejlegårdsvej are characterised by growth and urban revitalisation. The dwellings are thoughtfully designed, offering a range of two to four-bedroom flats, each of them accompanied by balconies, and some units boast spacious rooftop terraces of up to 39 sq m.

GLA (SQ M) 7,746 sq m

UNITS 95

SIZE RANGE 64-114 sq m

COMPLETION 2022

NOI DKK 11,006,196

+ PARKING DKK 174,902

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PROJECT WESTFIELD

Location

HØJE-TAASTRUP STATION

COPENHAGEN

TAASTRUP STATION

COPENHAGEN CENTRAL STATION

MOTORWAY

RAILROAD

TAASTRUP

KASTRUP

RAILROAD

VALLENSBÆK

VALLENSBÆK STATION

GREVE

THE PROPERTY

GREVE STATION

KØGE BUGT

ON

Vallensbæk Strand offers a truly enviable location close to Co penhagen, ensuring an unrivalled advantage for investors seek ing to capitalise on Vallensbæk Strand’s seamless integration of coastal serenity and urban convenience. Vallensbæk Strand has a unique charm that captivates locals and visitors alike. The area offers a wealth of recreational opportuni ties from leisurely beach walks as well as various water sports ac tivities. These picturesque surroundings provide an ideal retreat from the vibrant city life. EMILIEHAVEN TORBENFELDVEJ 2 AND VEJLEGÅRDSVEJ 53

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PROJECT WESTFIELD

DK-2665 VALLENSBÆK STRAND

Køge Bugt Motorway E55

Daycare

Daycare

THE PROPERTY

Grocery shop Rema 1000

Public School

Daycare

Daycare

Vallensbæk Station

Bilka Hypermarket

Public School

VALLENSBÆK

Stadium

DISTANCES AND TRAVEL TIMES TO AND FROM EMILIEHAVEN

Sport Centre

Public Park

Vallensbæk Station (train )

Padel Center

Grocery shop Rema 1000

Golf Court

500 m

600 m

600 m

1.0 km

1.0 km

1.0 km

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PROJECT WESTFIELD

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PROJECT WESTFIELD

Skjeberg Allé

ADDRESS Skjeberg Allé 92-162 DK-2630 Taastrup

Skjeberg Allé in Taastrup comprises 36 dwellings across 12 two-sto rey townhouses of 112 sq m as well as 24 flats of 90 sq m. The dwell ings are situated in a modern neighbourhood alongside other re cently constructed residential properties and in close proximity to excellent shopping facilities and public transport options. The townhouses and ground-floor flats have access to small gar dens or private terraces, while the flats on the first floor feature pri vate balconies. All dwellings face a communal green space that in cludes a sustainable stormwater management system.

GLA (SQ M) 3,561 sq m

UNITS 36

SIZE RANGE 87-114 sq m

The property also offers good parking areas, charming green com mon areas with room for play and social interaction.

COMPLETION 2019

NOI DKK 5,094,951

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PROJECT WESTFIELD

Location

HØJE-TAASTRUP STATION

COPENHAGEN COPENHAGEN CENTRAL STATION

TAASTRUP STATION

MOTORWAY

RAILROAD

HEDEHUSENE

TAASTRUP

THE PROPERTY

VALLENSBÆK

VALLENSBÆK STATION GREVE

GREVE STATION

KØGE BUGT

RØD STATION

SKJEBERG ALLÉ 92-162

Taastrup is a dynamic city with a strategic location in the western part of Greater Copenhagen. As a result of its location, Taastrup is known as a hub for com merce, trade and culture in the region. This makes Taastrup an extremely attractive destination for in vestors seeking growth and opportunities.

The city benefits from its extensive infrastructure and great accessibility, including Taastrup Station, which provides direct connections to Copenhagen and the rest of Zealand. This is one of Taastrup’s greatest ad vantages, as it offers residents and visitors easy ac cess to workplaces, educational institutions, cultural events and shopping options.

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PROJECT WESTFIELD

DK-2630 TAASTRUP

Motorway 21

Vallensbæk Station

Rema 1000 Shopping Centre

Grocery shop Rema 1000

City 2 Shopping Centre

Lidl Shopping Centre

THE PROPERTY

Gymnasium

Vallensbæk TAASTRUP

Tennis

Daycare

Private School

Public School

Daycare

DISTANCES AND TRAVEL TIMES TO AND FROM SKJEBERG ALLÉ

Public School

Gymnasium

Høje-Taastrup Station

Childrens Daycare

Grocery shop Lidl

City 2 Shopping Centre 750 m

100 m

500 m

600 m

2.5 km

600 m

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PROJECT WESTFIELD

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PROJECT WESTFIELD

Trylleskoven

ADDRESS Skibsager 56-118 DK-2680 Solrød Strand

Trylleskoven comprises 32 distinctive dwellings, offering a mix of flats and penthouses. The flats are located in three and four-sto rey townhouses. Each flat features a dedicated terrace or balcony, while the residents of the top-storey penthouses have exclusive ac cess to a private rooftop terrace with a panoramic 180-degree view of the surrounding area. Trylleskoven is an inviting complex locat ed in the vibrant community of Solrød. Situated in a convenient and sought-after area, the property offers residents a modern and com fortable living experience. The property features well-designed buildings, boasting a con temporary architectural style. The exteriors attractive facades and a harmonious integration with the surrounding environment. The overall aesthetic of Trylleskoven conveys a sense of sophistication and modernity. Trylleskoven offers a variety of flat sizes and layouts to suit different needs and preferences. Whether you are a single, a young professional, a couple or a small family, you can find a suita ble home within the complex. The flats are thoughtfully designed to maximise functionality and comfort. Inside the flats, you will find stylish and well-appointed interiors. The open-concept layouts create a spacious atmosphere, and large windows allow ample natural light to fill the living spaces. The use of high-quality materials and modern finishes adds a touch of ele gance and refinement to the overall design.

GLA (SQ M) 3,302 sq m

UNITS 32

SIZE RANGE 74-130 sq m

COMPLETION 2022

NOI DKK 4,520,711

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PROJECT WESTFIELD

Location

HØJE-TAASTRUP STATION

TAASTRUP STATION

COPENHAGEN

MOTORWAY

HEDEHUSENE

TAASTRUP

RAILROAD

VALLENSBÆK STATION

GREVE

GREVE STATION

SOLRØD STRAND

KØGE BUGT

SOLRØD STATION

THE PROPERTY

TRYLLESKOVEN – SKIBSAGER 56-118

Solrød Strand is a town located by the coast of Øresund in Denmark. With its scenic location and direct access to the beach, Solrød Strand offers a unique combina tion of quality of life and investment potential. The town benefits from its proximity to Copenhagen, Greve and Køge, making it an attractive destination for both residents and visitors. Solrød Strand is easi

ly accessible via the motorway network and has good public transport connections, including Solrød Strand Station. This excellent infrastructure ensures seamless travel to and from the town and allows for quick con nections to the surrounding urban areas.

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PROJECT WESTFIELD

DK-2680 SOLRØD STRAND

Trylleskoven National Forrest

Limestone pit

Grocery shop Netto

THE PROPERTY

Daycare

Køge Bugt Motorway E55

Vallensbæk

Public School

Solrød Beach

SOLRØD STRAND

Solrød Strand Station

Grocery shop Rema 1000

DISTANCES AND TRAVEL TIMES TO AND FROM TRYLLESKOVEN

Childrens Daycare

Trylleskoven

Solrød Strand Station (train )

Public Shool

Grocery shop Netto

Solrød Beach

1.4 km

400 m

600 m

1.6 km

450 m

1.3 Km

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PROJECT WESTFIELD

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PROJECT WESTFIELD

Solviften (forward purchase)

ADDRESS Lillevangsvej 48A DK-2670 Greve

Solviften in Greve consists of 148 dwellings across six three-storey buildings with flats ranging from 60 to 110 sq m. The dwellings are situated in a modern neighbourhood, which is conveniently locat ed near excellent shopping options and easily accessible public transport links. The well-designed dwellings include a mix of two to four-bedroom flats, each of which includes a balcony, while the ground-floor units also feature small private gardens. The property is set to be completed in Q4 2023.

GLA (SQ M) 10,380 sq m

UNITS 148

The unit mix caters to a wide variety of tenants from young profes sionals and singles to families and seniors.

SIZE RANGE 54-114 sq m

Overall, Solviften is a contemporary complex that combines mod ern design, functional living spaces and a beautiful natural environ ment. It offers residents a comfortable and convenient lifestyle in close proximity to the centre of Copenhagen.

COMPLETION 2023 (Q4)

NOI DKK 15,379,972

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PROJECT WESTFIELD

Location

HØJE-TAASTRUP STATION

COPENHAGEN

TAASTRUP STATION

COPENHAGEN CENTRAL STATION

MOTORWAY

RAILROAD

HEDEHUSENE

TAASTRUP

RAILROAD

VALLENSBÆK

VALLENSBÆK STATION GREVE

GREVE STATION

THE PROPERTY

KØGE BUGT

RØD STATION

SOLVIFTEN – LILLEVANGSVEJ 48A

Greve is a municipality by the eastern coast of Zealand that is renowned for its scenic beauty and tranquil surroundings. Greve offers a perfect blend of idyllic landscapes and urban convenience, making it an immensely appealing destination for tenants. Greve enjoys excellent access to Copenhagen and other major cities in the region via several motorways and public transport links. Residents and visitors can therefore easily access the bustling city life, which enhances the attrac tiveness of investment properties in the area and attracts a di verse range of tenants and business prospects.

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PROJECT WESTFIELD

DK-2670 GREVE

Daycare

Køge Bugt Motorway E55

Daycare

Grocery shop Lidl

THE PROPERTY

Daycare

GREVE

Waves Shoppingcenter

Hundige Station

Public School

Sport Centre

Public School

DISTANCES AND TRAVEL TIMES TO AND FROM SOLVIFTEN

Beach Park

Hundige Station (train )

Public Shools

Sports Center

Waves Shopping center 1.2 km 200 m Childrens Daycare

5 km

1.1 km

1.5 km

1.6 km

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PROJECT WESTFIELD

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PROJECT WESTFIELD

Financial overview

Interested parties are encouraged to make their own assessment of the proposed transac tion. However, to assist in such an assessment, we have calculated some selected key finan cial figures regarding the operating budget for the properties in the Portfolio.

DEPOSITS AND PREPAID RENT The majority of the tenants have put up cash deposits and prepaid rents equivalent to a total of four months’ rent. As of July 2023, the total amount in cash deposits corresponds to DKK 7,519,388, and the total amount in prepaid rents corresponds to DKK 1,734,834. RENTAL DISCOUNTS Rental discounts have not been given for the leases, and the rents are adjusted annually in accordance with the Net Price Index. In 2022, a small discount has been provided to the tenants of Emiliehaven: As per agree ment with the tenants, the seller has not enforced the NPI regulations in that year.

NET RENTAL INCOME The net rental income has been submitted for 2024 based on the terms and condition in the lease con tracts as well as information made available by the sell er. The Portfolio generates an annual rental income of approximately DKK 42,0 million in 2024. OPERATING COSTS The operating costs of the Portfolio are listed for 2023. Costs relating to property management, external maintenance and janitorial services and cleaning have been estimated based on benchmarks consistent with market standards. On this basis, the operating costs of the Portfolio is estimated at DKK 5.83 million. RENT POTENTIAL It is estimated that there is a rent potential and an op portunity for optimisation of the rent income when reletting, particularly for the property Emiliehaven in Vallensbæk. For detailed clarification regarding ERV, please refer to the financial data package made availa ble in connection with this IM.

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PROJECT WESTFIELD

OPERATING BUDGET (YEAR 1)

EMILIEHAVEN

Parking - Emiliehaven

OPERATING BUDGET (YEAR 1)

DKK total

DKK/sq m (1)

DKK total

DKK/parking space

Net rental income

12,621,654

1,629

264,902

2,943

Service charges

0

0

0

0

Operating income

12,621,654

1,629

264,902

2,943

Property taxes 2, 3

-345,000

-45

0

0

Refuse collection 2

-334,000

-43

0

0

Property insurance 2

-55,000

-7

0

0

Janitorial services and cleaning 4

-309,840

-40

0

0

NOTES: All amounts are quoted in DKK.

Service subscriptions 2

-31,000

-4

0

0

1. Per sq m GLA.

Common utilities 5

-23,238

-3

0

0

2. Based on the Sellers’ operating

budgets for 2024 except for Solviften, which is estimated by Colliers.

Constribution to (land)owners' associations 2

0

0

0

0

3. It is estimated by Colliers that property taxes are too high for Skjerbeg Allé. It is estimated that the property taxes for the property should be ap proximately DKK 60 per sq m GLA rather than DKK 131 per sq m GLA.

External maintenance 6

-232,380

-30

0

0

Property management 7

-285,000

-37

-90,000

-1,000

Operating costs

-1,615,458

-209

-90,000

-1,000

4. Estimated costs for janitorial services and cleaning (DKK 40 per sq m GLA).

Net operating income (fully let)

11,006,196

1,421

174,902

1,943

5. Estimated costs for common utilities (DKK 3 per sq m GLA).

6. Estimated long-term provision for external maintenance (DKK 30 per sq m GLA). 7. Estimated property management costs (DKK 3,000 per residential unit; DKK 1,000 per parking space).

Reversionary potential

1,056,950

136

0

0

Net operating income (incl. reversionary potential)

12,063,146

1,557

174,902

1,943

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PROJECT WESTFIELD

SKJEBERG ALLÉ

TRYLLESKOVEN

SOLVIFTEN

TOTAL

DKK total

DKK/sq m (1)

DKK total

DKK/sq m (1)

DKK total

DKK/sq m (1)

DKK total

DKK/sq m (1)

17 , 723 , 512

1 , 707

42 , 002 , 729

1 , 681

6,204,904

1,742

5,187,757

1,571

0

0

0

0

0

0

0

0

6,204,904

1,742

5,187,757

1,571

17,723,512

1,707 42,002,729

1,681

-468,000

-131

-153,000

-46

-519,000

-50 -1,485,000

-59

-103,000

-29

-135,000

-41

-311,400

-30

-883,400

-35

-51,000

-14

-24,000

-7

-124,560

-12

-254,560

-10

-142,440

-40

-132,080

-40

-415,200

-40

-999,560

-40

-74,000

-21

0

0

-51,900

-5

-156,900

-6

-10,683

-3

-9,906

-3

-31,140

-3

-74,967

-3

-46,000

-13

-18,000

-5

-134,940

-13

-198,940

-8

-106,830

-30

-99,060

-30

-311,400

-30

-749,670

-30

-108,000

-30

-96,000

-29

-444,000

-43

-1,023,000

-41

-1,109,953

-312

-667,046

-202 -2,343,540

-226 -5,825,997

-233

5,094,951

1,431

4,520,711

1,369 15,379,972

1,482

36,176,732

1.448

186,824

52

-1,176

0

226,750

22

1,469,348

59

5,281,775

1,483

4,519,535

1,369 15,606,722

1,504 37,646,080

1.507

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PROJECT WESTFIELD

CPI-linked cash flowwith rent potential driven by core drivers

CORE DRIVERS

Structural shift in favour of renting, driven in part by increasing affordability constraints

Locations with high population growth driving demand (index 100 = 2023)

53%

112

52%

110

51%

108

50%

49%

106

48%

104

47%

102

46%

100

45%

10 11

12 13 14 15 16 17 18 19 20 23

23

26

29

32

35

38 41

44 47

50

Occupied by owner

Occupied by tenant

Denmark

The portfolio

Note: The population growth for the portfolio is an average of the municipalities Høje-Taastrup, Vallensbæk, Greve and Solrød. Source: Statistics Denmark, Colliers

Note: Ownership and rental housing ratios in the period 2010-2023. Data from 2021 and 2022 are temporary unavailable. Source: Statistics Denmark, Colliers

Since 2010, the rate of ownership has dropped from ap proximately 52% to 48% as a result of primarily increas ing affordability constraints as well as an increased sup ply of multi-storey housing, which typically consists of rental housing.

The municipalities of Høje-Taastrup, Vallensbæk, Greve and Solrød are expected to see population growth of approximately 11% by 2050, which is higher than the ex pected national population growth of 6% in the same period. This ensures high demand for the properties in the portfolio, as we have also observed a trend of high demand for dwellings in new urban areas.

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PROJECT WESTFIELD

PORTFOLIO WITH POTENTIAL

RENT POTENTIAL DRIVEN IN PART BY STRONG, SOUGHT AFTER MICROLOCATIONS

RESIDENTIAL PORTFOLIO WITH RESILIENT AND INFLATION-LINKED CASH FLOWS

1,800

1,750

1,700

100% Open market rent

100% CPI-linked leases

1,650

1,600

1,550

1,500

1,450

100% Of the portfolio expected to be operational

95% Portfolio occupancy rate

1,400

Skjeberg Allé

Emiliehaven

Solviften

Trylleskoven

Avg. current rent

Avg. market rent

Note: The average current rent is as per rent roll date (27 June 2023). The market rent is estimated by Colliers. Source: The Client, Colliers

Note: Portfolio occupancy rate is excluding Solviften, which is under construction. As per the rent roll date (27 June 2023), 56% of the property’s flats are let.

We estimate a rental potential of approximately DKK 50 per sq m for Skjeberg Allé, approximately DKK 135 per sq m for Emiliehaven and approximately DKK 25 per sq m for Solviften.

The portfolio, which is expected to be fully con structed before closing, has a 95% occupancy rate for the standing assets as of 27 June 2023. The properties are 100% inflation-linked and are let on market terms.

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PROJECT WESTFIELD

TRANSACTION STRUCTURE

THE PROPERTIES are owned by Solrod Strand ApS, Hoje-Taastrup ApS, Vallensbæk ApS and Greve ApS, which are owned by K-Fast Holding Danmark A/S registered un der CVR no. 41221194. The companies were es tablished for the sole purpose of developing, owning and operating the properties. The proposed transactions will be structured as a share deals involving the transfer of all shares

in the companies. By structuring the trans action as a share deal, a potential buyer may avoid paying stamp duty of 0.6% otherwise levied on the purchase price in an asset deal and may take advantage of any latent capi tal gains tax (LCGT) taken over as part of the Transaction. The tax base value of the proper ties as per 31 December 2023 is estimated at approximately:

Vallensbæk ApS:

DKK 188,476,095

Hoje-Taastrup ApS:

DKK 82,565,955

Solrod Strand ApS:

DKK 65,000,000

Greve ApS:

DKK 294,700,000

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PROJECT WESTFIELD

K-Fast Vallensbæk ApS

Target

K-Fast Hoje-Taastrup ApS

K-Fast Holding Danmark A/S

Target

K-Fast Solrod Strand ApS

Target

K-Fast Greve ApS

Target

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PROJECT WESTFIELD

Danish economy

IN THE PAST YEAR , the global economy has been affected by Russia’s invasion of Ukraine, which has resulted in high inflation and high interest rates. These negative developments are taking place in the wake of a Danish econ omy that is already affected by the aftermath of the coronavirus pandemic. Compared to other countries, Danish companies are prov ing extremely resilient despite the current sit uation, which can largely be attributed to the low unemployment levels in Denmark. As an offsetting correction to the negative GDP growth seen during the coronavirus pandemic, 2022 saw GDP growth of 2.7% in Denmark, which is marginally below the GDP growth of 3.5% in the eurozone. The rel atively less strong growth in Denmark com pared to the eurozone in 2022 should be viewed in a context where Denmark’s econ omy, during the coronavirus pandemic, per formed relatively better than the eurozone with a decrease in GDP of 2.1% compared to

6.3% in the eurozone. The GDP growth is es timated to 2.5% in 2023 and 1.0% in 2024 in Denmark, and 0.5% in 2023 and 1.0% in 2024 in the eurozone.

Real GDP-growth, (y/y)

0% 2% 4% 6%

-10% -8% -6% -4% -2%

10 11 12 13 14 15 16 17 18 19 20 21 22 E23 E24 Eurozone Denmark

Source: Eurostat, Danmarks Statistik, Danske Bank per 30. June 2023

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PROJECT WESTFIELD

Macroeconomic indicators After many years of record-low Danish un employment levels, the unemployment rate has slowly started to increase. Danske Bank expects unemployment to increase from 2.6% in 2022 to 2.9% in 2023. This is a rela tively small increase considering the expec tations for the overall economy, and there is still likely an unfulfilled demand for labour. Consumer spending decreased by 1.6% in

2022, but there are prospects of increases in 2023 and 2024 at 0.6% and 1.7%, respectively. The positive outlook in consumer spending is highly affected by positive trends in both wages and inflation expectations. Wages has increased by 3.6% in Q2 2023 compared to Q2 2022, and inflation is expected to de crease from 7.7% in 2022 to 4.1% in 2023 and 3.2% in 2024, which will result in an increased purchasing power.

DENMARK

EUROZONE

2022

2023E

2024E

2022

2023E

2024E

Unemployment 1

2.6

2.9

3.4

6.7

6.7

6.7

Private consumption 2

-1.6

0.6

1.7

N/A

N/A

N/A

Export 2

10.8

5.7

1.2

N/A

N/A

N/A

Inflation 2

7.7

4.1

3.2

8.4

5.3

2.8

Public debt 3

30.1

27.4

25.7

N/A

N/A

N/A

Note: 1. % of labour force, 2. % y/y, 3. % of GDP. Source: Danske Bank per 30. June 2023

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PROJECT WESTFIELD

Danish residential LEASE LEGISLATION

RENT REGULATION In Denmark, private rental properties are regulated by the Danish Rent Act (‘lejeloven’). MARKET RENT The provisions of the Danish Rent Act concerning rent regulation may be deviated from when the tenancy concerns a residential unit in a property taken into use after 31 December 1991 or a residential unit which was lawfully and exclusively used for commercial purposes as of 31 December 1991. The same applies to flats and single rooms on newly added floors for which a building permit has been is sued after 1 July 2004. The rent charged for these tenancies may be set at the market rent, i.e. according to supply and demand. Solrød and Greve are unregulated municipalities but as the properties are constructed in 2022 and 2023 (ex pected), respectively, it will not affect the rent charged. The residential rent for the entire portfolio can be set at market rent, i.e. according to Section 54 of the Danish Rent Act.

Obligation to offer tenants ownership

Under Danish law, the landlord must offer certain prop erties to the tenants on market conditions if the prop erty is sold to a third party. This also applies if the com pany holding the title of the property is sold. The above obligation only applies to residential proper ties with six or more residential units or at least – if it is a mixed-use property – 13 residential units.

The obligation does not apply to properties which are divided into commonhold units such as Skjeberg Allé.

If the tenants accept the offer, the third party original ly intended to buy the property must accept the ten ants’ pre-emptive right, and the property is sold to the tenants. In a double-holding transaction structure, the obliga tion to offer the Properties to the tenants most likely does not apply.

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PROJECT WESTFIELD

RESIDENTIAL LEASES

1. Not subject to VAT, 25%.

Internal maintenance and repairs 6 External maintenance and repairs 7

Rent quoted in 1

DKK gross p.a.

Negotiable

2. For multi-let properties including a proportionate part of common parts, including stairs, lifts, etc.

Floor areas 2

Gross external

Landlord is responsible

3. The tenant is typically entitled to terminate the lease at three months’ notice.

Lease term 3

‘For time and eternity’

Common parts

Landlord is responsible

Breaks

None

Building insurance

Landlord is responsible

4. Applicable to buildings occupied after 31 December 1991 subject to agreement. Rules on cost regulated rent control (in Danish: ‘omkost ningsbestemt husleje’) may apply to buildings occupied prior to this date. 5. Utility value review may be applied for either party every two years. This mechanism applies if the lease is not governed by the rules of cost regu lated rent control, cf. (4). 6. According to the Danish Rent Act, internal maintenance and repairs comprises whitewashing, painting, wallpapering and lacquering of floors. Most often, it is negotiated to be the obligation of the tenant. 7. According to the Danish Rent Act, external maintenance and repairs cover all works apart from white washing, painting, wallpapering and lacquering of floors, hence also parts inside the residential unit. 8. Alternatively, 50% of the rooms in the flat if no more than two persons live in each room. The total number of residents may not exceed the number of rooms. 9. Existing tenants in residential properties governed by the Danish Rent Act may have a pre-emption right to acquire the property in case of a direct or indirect sale.

Rent payment

Monthly in advance

Property taxes

Landlord is responsible

Deposit and prepaid rent 4 Basis of rent adjustment

3-6 months

Subletting 8

Yes, 2-year maximum

NPI

Right of assignment

Yes, in swap

Frequency of rent adjustment

Annual

Restoration

Negotiable

Rent review 5

Every 2 years

Pre-emption 9

Danish Rent Act

2015 legislative amendments

Effective as of 1 July 2015, the Danish Parliament amended the provisions gov erning residential leases on several counts. Following these provisions, the owner of a residential rental property is required to prepare written move-in and move-out reports. According to the amended rules, the land lord can no longer demand that a residen tial tenant undertakes the restoration of the lease premises to a newly refurbished state upon lease expiry, even if the lease premises were newly refurbished at the time of lease commencement. However, the landlord may demand that the tenant

restores the premises to a standard refur bished state and condition.

Further, the so-called stepped-rent regu latory provisions of residential leases have been abolished. It is therefore no longer possible to adjust the rent by a fixed-per centage annual increase of e.g. 2% or 3%. Instead, the rent on residential leas es commissioned after 30 June 2015 is to be adjusted annually in step with the in crease in NPI. Information provided in the table below is intended for guidance only and reflects typical practices for residential leases.

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About K-FASTIGHETER (the seller)

The seller K-Fast Holding AB (“K-Fastigheter”) is a project development, construction, pre fab and property company focused primarily on rental housing properties. As of 31 December 2022, the rental housing properties accounted for 91% of the property value of the completed property portfolio and for 88% of the contractual rent.

K-Fastigheter’s property portfolio encom passes a lettable area of approximately 288,000 sq m across more than 3,708 hous ing units and 170 commercial contracts with an annual rental value of some SEK 476 mil lion. The project portfolio also comprises over 6,100 flats under construction and in project development.

Number of apartments under management 3,833 Units Q1 2023 3,708 Units Q4 2022 Number of homes in production 1,986 Units Q1 2023 2,058 Units Q4 2022

Rental income

Long-term net asset value

114.4 SEK M Q1 2023 79.3 SEK M Q1 2022

5,575.2 SEK M Q1 2023 5,768.3 SEK M Q4 2022

Investment properties, value

Profit from property management 32.1 SEK M Q1 2023 26.0 SEK M Q4 2022

13,596.1 SEK M Q1 2023 13,094.6 SEK M Q4 2022

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Contact TRANSACTION ADVISORY TEAM

Niels Fuglsang Hansen

Stefan Søndergaard

Senior Commercial Real Estate Advisor niels.fuglsang@colliers.com +45 21 28 17 27

Senior Commercial Real Estate Advisor stefan.sondergaard@colliers.com +45 30 60 88 89

SUPPORT, COPY AND DESIGN TEAM

Karen Crone Nielsen

Martin Lerche

Oliver Nelmark

Manager project coordination karen.cronenielsen@colliers.com +45 51 31 60 07

Associate Valuation & Advisory Martin.lerche@colliers.com +45 24 92 86 01

Associate Valuation & Advisory oliver.nelmark@colliers.com +45 24 93 47 42

Mikkel Emil Neander

Ieva Glasius-Nyborg

Nana Keiding

Associate Valuation & Advisory mikkel.neander@colliers.com +45 27 58 71 20

Manager Design Team Ieva.glacius-nyborg@colliers.com +45 28 82 16 99

Graphic Designer Design Team nana.keiding@colliers.com +45 22 21 75 12

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PROJECT WESTFIELD

Disclaimer

Colliers has been authorised by the Seller to issue this confidential sales material (‘the Material’) on the Target Companies and the Portfolio. The Material is intended for professional investors only who are considered able to assess the risks associated with a transaction such as the Transaction. The Material is not approved for use by individuals or entities that are not the intended re cipients, and unauthorised use may cause substan tial damage to the Seller, Colliers or third parties, in cluding parties that have expressed an interest in the Transaction. Unauthorised recipients of the Material are required to maintain confidentiality and are further requested to notify Colliers immediately and return or delete/destroy the Material inadvertently received. The information contained in the Material has been compiled to assist interested parties in making their own evaluation of the Transaction, but the Material does not purport to contain all the information that a prospective buyer may require. Interested parties are encouraged to conduct their own investigations and analyses of the data set forth in the Material. The con tents of the Material have not been verified by the Seller, Colliers or any third party. No representation, warranty or undertaking – express or implied – is made or given by or on behalf of the Seller, Colliers or any third party in relation to the ac curacy, completeness or fairness of the information contained in the Material or information made availa

ble in connection with any further investigations of the Transaction, including any estimates or projections. Neither the Seller nor Colliers may be held liable for any misrepresentations contained in or omitted from this Material. The contents of the Material will not be up dated. The Seller and Colliers are under no obligation to correct any inaccuracies identified in the Material. Minor inconsistencies may occur in data tables due to rounding. Colliers is not accountable to any other par ties than the Seller for maintaining client confidential ity and providing advice in relation to the Transaction, the contents of the Material or any other transactions or arrangements referred to or contemplated in the process. The issue of the Material does not constitute investment advice by Colliers or establish a business relationship between Colliers and the Recipients. The issue does not include an offer or acceptance of any agreement. An offer for Target Companies and the Portfolio will only constitute a contractual obligation if set forth and accepted in a final transfer agreement signed by the Seller. By retaining and using the Material, the Recipients ac knowledge that the terms and conditions under which the Material is provided are governed by Danish law and accept the contents of this disclaimer. All communications, enquiries and requests for infor mation relating to this Material or the Transaction are to be addressed to Colliers.

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