NPRO: Norwegian Property enters into twelve-year lease at Skøyen with the Norwegian Public Service Pension Fund
Norwegian Property has entered into a long-term agreement with the Norwegian Public Service Pension Fund (Statens Pensjonskasse, “SPK”) for letting of office space in Drammensveien 134 at Skøyen in Oslo. The lease contract has duration of twelve years from expected takeover in the fourth quarter of 2014. The lease encompasses a total area of office space exceeding 9 200 square meters in the 1st and 2nd floor of the building, and about 450 square meters of warehouse/storage area and computer room in the basement of the building. Annual rent for the office area is NOK 2 775 per square meter, and the rent level will be regulated once a year in accordance with the increase in the consumer price index as from November 2011.
Drammensveien 134 has a very central location at Skøyen, with immediate access to public transportation. Today, Drammensveien 134 consists of six separate buildings which are all owned by Norwegian Property. Building 1-4 were constructed in 1986, and will be completely rehabilitated before the Norwegian Public Service Pension Fund moves in during 2014.
CEO Olav Line says in a comment:
“The Norwegian Public Service Pension Fund is a solid tenant with growth potential, and we are pleased that we have succeeded in reaching a long-term agreement for letting of office space in a building which will go through an extensive transformation.
With its new design, use of materials and unique location, Drammensveien 134 will become a building that stands out at Skøyen. At street level there will be retail areas, bars and friendly restaurants. In a wider urban development perspective, we have the ambition that the renovation of Drammensveien 134 will create a natural connection between the recreational areas of Frognerparken and Bygøy, and a central part of the urban landscape.”
The reconstruction project involves connecting the four houses together, in order to create one new, larger and more space efficient building. The building will be more environmentally friendly, and the project aims to achieve the Breeam classification “very good” and energy class B. The reconstructed building will have a central entrance leading into a new atrium, common meeting room area, auditorium and canteen. The office floors will be large and flexible, with total space of about4 000 square meters. As a consequence of the connection of the four buildings, total space will be increased by about 10 000 square meters, from20 000 square metersto30 000 square meters. The new building will have an attractive and modern exterior, with fronts ensuring good light conditions for the workplaces.
Building 5 and 6, which were completed in 2001 and 2005 respectively, are let on long-term leases and are not involved in the rehabilitation plans for building 1-4.
The zoning plan is currently being considered by the local municipality, and assumed to be approved during spring 2013.
This information is subject of the disclosure requirements acc. to § 5-12.
For additional information, please contact:
Olav Line, CEO, tel. +47 482 54 149, ol@npro.no
Elise Heidenreich-Andersen, SVP IR, tel. +47 951 41 147, eha@npro.no
Norwegian Property is a focused and fully integrated office property company with 47 properties located in the Oslo area and Stavanger in Norway. The portfolio, which has a total fair value of NOK 15.6 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.