NPRO - AGREEMENT TO SELL NEDRE SKØYEN VEI 24-26, OSLO
Norwegian Property ASA has entered into an agreement to sell Nedre Skøyen Vei 24-26 in Oslo to Veidekke Eiendom AS, the property arm of the listed construction company Veidekke ASA. The parties have agreed to a handover of the property in March 2019 at the expiry of the lease contract with the tenant Evry ASA, and Norwegian Property keeps the revenues and the operational responsibility of the property until handover.
Agreed property value in the transaction is NOK 799 million, of which NOK 50 million as a deposit is due for payment in September 2015. Annual rental revenues (2015) is NOK 79.3 million. Aggregated, nominal value of the rental revenues (excluding any future CPI adjustments), which Norwegian Property will receive in the period until 2019 in addition to the property value, is approximately NOK 276 million. Including the value of estimated net cash flow until March 2019, the calculated net present value of the proceeds is estimated to be approximately NOK 35 million above the current valuation of the property.
The property Nedre Skøyen Vei 24-26 has over several years been the headquarters in Oslo of Evry (previously EDB Ergo Group and Fellesdata), and is today fully let to Evry ASA until the end of February 2019. Evry currently uses only a smaller part of the property, and re-lets major parts. The property constitutes a total area of 36,000 sqm including areas for office, warehouse, data centre and parking.
«Nedre Skøyen Vei 24-26 has a good location close to well established residential areas at Skøyen in Oslo. The current buildings are to a large extent built in the early eighties and accommodated to Evry’s needs, including large data centres. We have for some time worked on different projects and alternatives for the property when the current rental contract expires in 2019. A residential conversion, possibly in combination with some commercial usage, appears to be the most value creating alternative in today’s market. We are therefore very happy to enter into a transaction with Veidekke», Svein Hov Skjelle, CEO of Norwegian Property says.
The sale is in line with Norwegian Property’s strategy of active portfolio development.
For additional information, please contact:
Svein Hov Skjelle, Chief Executive Officer, phone +47 930 55 566
Norwegian Property is a focused and fully integrated office property company with 39 properties located in the Oslo area and Stavanger in Norway. The portfolio, which has a total fair value of NOK 16.5 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.