NPRO: Norwegian Property enters new lease agreements

In Stavanger, a five year lease has been entered into with Songa Offshore for the entire property in Maskinveien 32 at Forus. New annual rent will amount to NOK 7.6 million, with annual inflation adjustment taking effect from today, which corresponds to an increase of about 35 per cent compared with current rent level. The building was completed in 2003, and has a total area of 5 086 square meters including indoor parking. The property will be taken over by Songa Offshore immediately after the expiry of the existing lease with Evry on 1 March 2013. There will be no vacancy period or investments associated with the new lease.

In addition, a new lease has been signed with AON Norway AS to rent 2 374 square meters in Stortingsgaten 6 in Oslo. The rented area accounts for about 40 per cent of the total office space which will be vacated by Fokus Bank in the beginning of 2014. New annual rent will amount to NOK 8.4 million, with annual inflation adjustment taking effect from today, and the lease has seven years duration from expected takeover in 2014. Stortingsgaten 6 was completed in 2004, and Norwegian Property will do upgrades of the let area in order to ensure that the office space taken over by AON Grieg will be among the most attractive in Oslo.

CEO Olav Line says in a comment:

“Securing new leases is a key priority area, and we are pleased to see that the efforts made are resulting in the signing of several new rent agreements. The leases have been secured on attractive terms, and involve improved predictability and increased remaining duration of the lease term in the portfolio. In addition to the rent agreements in Stortingsgaten 6 and Maskinveien 32, we have entered into several smaller leases with new tenants both at Aker Brygge, Skøyen and in Nydalen.

Our experience is that market demand is good for centrally located office properties with high standard, and the efforts to secure new leases which highlight the value potential of the portfolio remain a key priority area going forward.”

This information is subject of the disclosure requirements acc. to § 5-12.

For additional information, please contact:

Aili Klami, EVP Leasing & Marketing, tel. +47 952 64 555,

Elise Heidenreich-Andersen, SVP IR, tel. +47 951 41 147,

Elise Heidenreich-Andersen
SVP Investor Relations
Tel: 47 951 41 147

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.