Singaporean-Backed Kerner Haus Sets Out Real Estate Growth Plan with Rs. 420 Million Rights Issue

Kerner Haus Global Solutions PLC (KHGS) is moving forward with a revised corporate growth strategy backed by its major shareholder, Singapore-based Ekta Global Pte. Ltd. The company has officially detailed a Rs. 420.119 million rights issue to support its expansion into strategic commercial real estate and prime leasehold properties.

The capital-raising initiative follows Ekta Global's acquisition of a dominant 63.62% stake in KHGS in November 2024. Following the acquisition, the company appointed a new Board of Directors on 10 January 2025 to steer this strategic shift. The company subsequently expanded its business toward a sustainable, growth-oriented model focused on building a high-yielding presence in fully managed commercial real estate.

A New Phase of Growth

The Board approved the proposed rights issue at its meeting on 1 June 2026, subject to in-principle approval from the CSE and final shareholder approval. Under the proposal, KHGS will offer up to 10,502,975 new ordinary voting shares at a fixed price of Rs. 40.00 per share, on the basis of one new ordinary voting share for every four existing ordinary voting shares held.

The issue price of Rs. 40.00 was deemed fair and reasonable by the Board, representing an initial discount to the Volume Weighted Average Price (VWAP) of Rs. 46.08 recorded during the post-subdivision period from 20 April to 1 June 2026, as well as the market closing price of Rs. 42.50 on the day of board approval.

While the stock experienced downward market movements in recent months, closing at Rs. 30.30 at the end of August 2026, the Board remains confident that the planned expansion of the company's asset base presents an attractive long-term proposition for investors.

Building a Real Estate Platform

The proceeds of the capital raise are strictly earmarked to drive the company's core commercial property rollout:

• Strengthening Balance Sheet and Liquidity Position: Designated for the immediate infusion of new equity capital into the company. This stabilizes the capital base, enhances financial flexibility, and provides a resilient liquidity buffer to protect corporate operations against future fluctuations.
• Outright Acquisitions: Designated for the direct purchase, fit-out, and refurbishment of commercial real estate across primary commercial nodes, including Colombo, Kandy, Jaffna, and Galle. These properties will be held directly under the company's name to build long-term capital appreciation and recurring rental income. The allocation will also cover the interior architecture, refurbishment, and digital design configuration required to transform the acquired properties into high-quality, fully managed, move-in-ready corporate workspaces.
• Leasehold Expansion: Allocated to securing high-demand commercial spaces on a long-term leasehold basis within the same key cities. This approach provides agile access to prime corporate locations with a lower initial capital requirement, improving overall capital efficiency. The allocation

will also include fit-out and refurbishment expenses required to establish these leased premises as high-quality, fully managed, move-in-ready corporate workspaces.

Before any property commitment is finalized, KHGS has mandated comprehensive commercial, financial, legal, and technical due diligence, supported by detailed feasibility studies.

Strengthening the Company's Capital Base

The rights issue will significantly strengthen KHGS's capital base and provide the company with additional financial capacity to execute its planned real estate expansion.

The new capital is expected to support the acquisition and development of income-generating commercial properties while creating a stronger platform for recurring rental income and potential long-term capital appreciation.

Strong Backing from Major Shareholder

Demonstrating its commitment to the company's expansion strategy, Ekta Global Pte. Ltd. has declared its intention to fully subscribe to its 63.62% entitlement, representing approximately Rs. 267 million in funding.

Furthermore, to safeguard the funding target against potential public undersubscription, Ekta Global has formally undertaken to absorb up to one million additional unsubscribed rights shares, representing an additional commitment of up to Rs. 40 million.

Key Timelines for Shareholders

The new ordinary voting shares will rank pari passu in all respects with the existing shares, including entitlement to future dividends.

The initiative has already secured in-principle listing approval from the Colombo Stock Exchange as of 2 September 2026. The final trajectory of the rights issue remains subject to shareholder approval at the upcoming Extraordinary General Meeting (EGM), which will be held as a fully virtual meeting on 2 October 2026 at 10:30 a.m.

Eligible shareholders should refer to the official rights issue documentation and relevant CSE announcements for the applicable entitlement and record date requirements.

KHGS's proposed transformation is centred on building a stronger and more diversified business platform in Sri Lanka's commercial real estate landscape. By combining backing from its parent entity with a balanced asset-ownership and leasehold strategy, the company aims to establish a resilient platform capable of generating recurring income and delivering sustainable long-term value to shareholders.