AGREEMENT TO SELL AV DRAMMENSVEIEN 149
Norwegian Property ASA ("NPRO") has entered into an agreement to sell Drammensveien 149 at Skøyen. The property is valued at NOK 695.0 million in the transaction, which is NOK 159.4 million above the valuation from the Third quarter 2012. The buyer is Orkla Eiendom AS.
The property comprises a plot currently used as parking lot and an office building. The office building was acquired by Norwegian Property in 2006 and is almost fully occupied by tenants. The plot was acquired by Norwegian Property in January 2012. The transaction comprises the two companies Drammensveien 149 AS and Drammensveien 149 Nybygg AS. A compensation of NOK 2 million for the companies’ net tax position has been agreed.
The sale is in line with Norwegian Property’s strategy of active portfolio development.
CEO Olav Line says in a comment: “We are selling Drammensveien 149 with a gain compared to the latest official external valuation. Skøyen is one of Norwegian Property’s main office clusters, and the plot was acquired in 2012 with the goal of developing an attractive office project. In light of the remaining work relating to rezoning and the relatively short remaining duration of the lease contracts on the existing office building, we find the agreed transaction value to be very attractive.”
Chair of the board in Norwegian Property, Nils Selte, is CFO in Canica. Chair of the board in Orkla, Stein Erik Hagen, owns 10.8 per cent of the shares in Norwegian Property through his family company Canica. Nils Selte has not participated in the board discussions or board decisions relating to the sale.
This information is subject of the disclosure requirements according to §5-12 of the Norwegian Securities Trading Act ('Verdipapirhandelloven').
For additional information, please contact:
Olav Line, CEO Norwegian Property, phone +47 482 54 149
Svein Hov Skjelle, EVP & CFO Norwegian Property, tel +47 930 55 566
Norwegian Property is a focused and fully integrated office property company with 42 properties located in the Oslo area and Stavanger in Norway. The portfolio, which has a total fair value of NOK 14.5 billion, is characterized by central location and attractive premises with low vacancy and high quality tenants. The group’s properties consist largely of office premises, associated warehousing and car parking, as well as retail and catering space. The company has identified four value drivers for long-term value creation; Marketing & letting, Property management, Property development and Transactions & finance.
Norwegian Property is listed on Oslo Stock Exchange with the ticker NPRO.