NPRO – Agreement to sell properties at Skøyen

Norwegian Property has entered into an agreement to sell three properties at Skøyen to Entra ASA. Agreed property value in the transaction is NOK 2 529 million, which is NOK 142 million (5.9 per cent) higher than the most recent valuation as of end of first quarter 2016 (NOK 2 387 million). The transaction will be completed on 1 September 2016 in the form of sale of the property owning companies with market adjustment for form of ownership.

The sale is in line with Norwegian Property’s strategy of active portfolio development, and the transaction underpins the values of the company’s property portfolio.

Norwegian Property will in connection with the transaction consider adjustments to the group’s interest hedging portfolio to secure that the portfolio to a greater extent reflects the current market interest rates. Norwegian Property resumed payment of dividend with NOK 0.05 per share after the first quarter of 2016. Going forward the Board of Directors will evaluate the level of dividend payments in connection with the quarterly reports.

The transaction comprises the properties Verkstedveien 1, Verkstedveien 3 and Drammensveien 134 with the attached garage and outdoor areas. No employees are part of the transaction.

Key numbers for the property portfolio::

Property                              Verkstedveien 1       Drammensvn. 134         Verkstedveien 3                  TOTAL

Gross space (sqm)                             31 691                           20 931                             8 387            61 009

   Of which offices (sqm)                    26 399                             9 879                              6 782            43 061

Run rate rents (mnok, Q1)                     71.4                               17.3                               38.0               126.7

Other key information for the properties as of 31 March 2016 are included in the quarterly presentation as of 31 March 2016. Run rate rents at closing are NOK 128.6 million.

Historic financial key figures for the portfolio (reflecting that the development project at Verkstedveien 1 was completed in the first half of 2015):

NOK million                                    2013                         2014                          2015                 Q1-2016 

Gross rental income                          56.3                           50.3                           83.5                     29.5

Direct property cost                          -7.9                            -4.6                             -7.0                      -1.8

Net rental income                              48.4                           45.7                           76.4                     27.7

Property value, end of period         1 498.9                    2 024.9                       2 358.1               2 386.7

Norwegian Property’s net Loan To Value on a proforma basis after the transaction is 49.7 per cent per 31 March 2016 (previously reported 57.2 per cent before the effects of the sale).

Pangea Property Partners has been the advisor for Norwegian Property in the transaction. The transaction is subject to approval from the Norwegian Competition Authority.

 For additional information, please contact:

 

Norwegian Property ASA

Svein Hov Skjelle, Chief Executive Officer,

phone +47 930 55 566

Norwegian Property is a focused and fully integrated office property company with 37 properties located in the Oslo area and Stavanger in Norway. The portfolio, which has a total fair value of NOK 16.4 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.

www.npro.no