(Oslo, February 28, 2008) Norwegian Property (NPRO) ASA has entered into an agreement with NEAS ASA  regarding management and operation of its Norwegian office portfolio. Under the agreement, NEAS will assume responsibility for management and the day to day operations of NPRO's properties during 2008 and 2009.

 

The agreement involves future ownership cost during the agreement period will be secured at a level of 10-12 per cent below current levels, without a corresponding reduction in magnitude or quality of work. In addition the agreement will ensure more and better services for NPRO's tenants.

 

The agreement, which has a duration of 6 years, represents an important step in the industrialization of the company's facilities management by achieving economies of scale throughout the management chain and by enhancing the quality of our product. 

 

Also, the deal represents significant innovation in the industry, and is a strong example of how NPRO will seek to drive the industrialization of the business.  The long duration of the agreement will enable both NPRO and NEAS to benefit from scale economies. Furthermore, the agreement is built on a performance based model that defines fixed prices on certain services. This provides predictability for both parties and immediate results for NPRO. In addition, NPRO tenants will have access to a range of new services.

 

"We are pleased to be able to enter into such an innovative agreement with a professional provider like NEAS. The agreement with NEAS serves as a prime example of how we will industrialize the main elements of NPRO's property business. Questions have been raised regarding the level of our ownership costs, and whether these would have to rise. However, this agreement proves the opposite. Our ownership costs will be further reduced as the price will be fixed nominally and performance based, instead of activity based which is the industry norm.  At the same time we will offer our tenants a better product with closer relations and a series of additional services, while NPRO's operations will become more efficient," said Petter Jansen, CEO of Norwegian Property.

 

The sum of these elements should result in reduced ownership costs, enhanced facilities management quality, and improved service to office tenants.  

 

Norwegian Property will maintain the overall contact with its customers, follow-up of rental agreements and will be the negotiating and contractual party with tenants.

 

Facts about the agreement:

 

Rental adjustments are considered to be part of a tenancy, and will thus not be covered by the agreement with NEAS. 

 

For further information please contact: CEO Petter Jansen, +47 90 09 87 28 or
COO Aili Klami 95 26 45 55.