NPRO: Acquiring Snarøyveien 30 in Fornebu

Norwegian Property has today entered into an agreement to purchase Telenor's building at Snarøyveien 30 in Fornebu outside Oslo. This agreement is between NPRO Holding AS and Telenor Real Estate AS, whereby NPRO Holding AS will acquire 100 per cent of the shares in Snarøyveien 30 AS. The takeover will take place during December 2020, after approval has been received from the competition authorities.

The agreed gross property value is NOK 5,450 million. Sixty-five per cent of the purchase price will be financed by a 10-year bilateral loan. The group has unsecured property at Aker Brygge in Oslo which will be used as security for bank credit facilities, possibly in combination with bond loans and the group's own cash balance to make up the remaining amount. The board is also authorised to issue up to 49.89 million new shares in the company.

The building has several solid tenants with long leases, of which Telenor is the most important. Telenor has entered into a 25-year lease which represents approximately one-third of the income in the building. The run rate at 1 January 2021 is estimated to be NOK 335 million.

This is a strategically important acquisition for NPRO, which entails an increased investment in Fornebu. It strengthens the group’s position in a district currently under development. Following the transaction, the group will have three clear geographical priority areas in the Oslo area: the central business district (CBD), Nydalen and Fornebu.

NPRO CEO Bent Oustad says: "It is with great enthusiasm and respect that we have reached agreement with Telenor today on the purchase of its property at Snarøyveien 30. This houses the Norwegian headquarters of such companies as Telenor ASA, Telenor Norway, Tieto Evry and ABB.

“We have great ambitions for further development of the property together with new and existing tenants. We already own the neighbouring building, Fornebu Works, at Snarøyveien 36, and will now become the owner of about 260,000 sq.m in all of offices and parking at Fornebu.

“We know the district well and believe the development of a new metro line and good infrastructure there fits well with the Oslo region’s future office market. Fornebu is characterised by offices for companies with high levels of expertise in technology, energy, renewables and finance. In addition, come large residential areas. In the years to come, we look forward to developing this district together with our tenants.”

Kathrine Astrup Fredriksen, states: "This acquisition is in line with the company's growth strategy and will contribute to long-term value creation in the years to come. Through the present acquisition, we have established our third office cluster in addition to Nydalen and Oslo CBD, where we already own substantial property portfolios."The law firm Wiersholm has been Norwegian Property's legal advisor, while PwC has assisted with financial DD in the transaction.

For further information, please contact:

Bent Oustad, CEO, mob: +47 4801 6082, e-mail: bo@npro.no
Haavard Rønning, CFO, mob. +47 400 200 19, e-mail: hr@npro.no

This information is subject of the disclosure requirements according to §5-12 of the Norwegian Securities Trading Act (’Verdipapirhandelloven’).

Norwegian Property is a focused and fully integrated office property company with properties located mainly in the Oslo area in Norway. The portfolio 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