NPRO: CANCELLATION OF LAND LEASES AT GARDERMOEN AT THE EXPIRATION OF RENTAL CONTRACT
Norwegian Property ASA has entered into an agreement with Avinor on the cancellation of land leases at Gardermoen. The cancellation will take place as of December 2019, upon expiry of the lease with our tenant SAS. Avinor will simultaneously aquire the buildings on the sites. Norwegian Property will retain rental income and operating responsibility for the properties until this time.
Gross property values are agreed in excess of NOK 40 million at takeover date.
Annual rental income (2018) for the properties is approximately NOK 30 million. The total nominal value of rental income (before annual adjustment for CPI), which Norwegian Property will receive in addition to the real estate value until December 2019, is approximately NOK 45 million.
The land lease contracts will expire in 2021, 2026 and 2027, while the lease with SAS expires 31 December 2019.
Avinor owns the ground at Gardermoen and we have a land lease agreement with them. We are pleased to find a solution where Avinor takes over the properties before the land lease contracts expire. We believe this is a good solution for all parties including our tenant SAS, says Bent Oustad, CEO of Norwegian Property ASA.
For additional information, please contact:
Bent Oustad, CEO
Telephone: +47 48 01 60 82
This information is subject of the disclosure requirements according to §5-12 of the Norwegian Securities Trading Act (’Verdipapirhandelloven’).
Norwegian Property is a focused and fully integrated office property company with 32 properties located in the Oslo area and Stavanger in Norway. The portfolio, which has a total fair value of NOK 15.4 billion, is characterized by central location and attractive premises 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.