Press Release June 4, 2013 RURIC AB agrees preliminary term sheet for the restructuring of its Bond Loan On 4 June 2013, the Board of Directors (the "Board") of Russian Real Estate Investment Company AB (publ) ("Ruric") agreed a preliminary term sheet on the restructuring of the existing bond loan issued by Ruric (ISIN: SE0003045848) with a total nominal amount outstanding of SEK 619,750,000 (the "Current Bond Loan") divided into 6,197,500 bonds (the "Current Bonds") with the Bondholders' Committee, which had been commissioned to negotiate with Ruric by the bondholders' meeting held on 6 May 2013. Preliminary Terms of the Restructuring According to the preliminary term sheet, Ruric, in consideration for the cancellation of the Current Bond Loan, will (i) divest the shares of the holding companies of certain of its property portfolio to a newly created Swedish orphan company (i.e., a company set up by a third party entity, such as a trust/foundation) ("PropCo"), and (ii) issue new B shares in its share capital to PropCo. PropCo will in turn issue bonds to the holders of the Current Bonds. Disposal of the Property Companies The Swedish limited liability companies RURIC Chetire AB, RURIC TRI AB, RURIC DVA AB and PD Finance AB and their respective subsidiaries OOO Ruric 2, OOO Ruric 3, OOO Ruric 4 and OOO Strelna Development (each a "Property Company"), holding the office properties known as "Gustaf", "Magnus" and "Oscar" and Strelna land plot will be sold to PropCo by way of a transfer of the entire share capital of RURIC Chetire AB, RURIC TRI AB, RURIC DVA AB and PD Finance AB along with all claims any remaining Ruric Group Company may have against the transferred companies. Share Issue In addition, Ruric will make a directed issue to PropCo of such number of new class B shares as will, following the new issue, represent 20% of the entire issued share capital of Ruric. Issue of new Bonds by PropCo PropCo will issue new bonds to the holders of the Current Bonds in exchange for their Current Bonds. The terms of the new PropCo bonds are still to be finalized. Cancellation of the Current Bonds In consideration of the Property Companies and claims being transferred to, and the Ruric B shares being issued to, PropCo, the Current Bonds will be cancelled. Further Steps A number of corporate and bondholders' actions will be required to carry out the proposals contained in the preliminary term sheet, including: * Bondholders' meetings to approve the term sheet and agree to exchange their Current Bonds; and * Shareholders' meetings to approve the sale of the Property Companies and the issue of the new Class B shares. Further details regarding such meetings will be announced and published on the Company's website. For additional information: Tatiana Ottestig, CEO Tel.: +7 (812) 309-78-95 E-mail: tottestig@ruric.com Web: www.ruric.com About company: RURIC AB (Russian Real Estate Investment Company AB (publ) (reg. No. 556653-9705, Hovslagargatan 5 B, SE-111 48 Stockholm)) is a company with Swedish capital, operating in St. Petersburg commercial real estate market since 2004. Besides its property management, RURIC AB establishes the realty agency, which services are based on the cutting edge mobile application, and introduces the system analyzing visitors traffic at business and trade centers prepared by the partners. This method has no parallels and is suggested as a part of the consulting offer for office and retail property owners. Beyond that, the company is already dealing with the investment projects coordination, local and national market approach consulting, valuation and property trust services. Real estate portfolio construction and management services are also included. These services apply to the property of different return, from €100,000 to 6% per annum. RURIC's Certified Advisor at First North is Erik Penser Bankaktiebolag [HUG#1707037]
RURIC AB agrees preliminary term sheet for the restructuring of its Bond Loan
| Source: Russian Real Estate Inv. Company AB