NPRO: Norwegian Property expands property and lengthens lease agreement in Stavanger

Norwegian Property has entered into an agreement with Total E&P Norge AS to expand the property in Finnestadveien 44 in Stavanger. The property is already let to Total E&P Norge, and the agreement also involves a ten year prolongation of the existing lease agreement “as is” until 2031 and a new lease with 17 years duration for the supplementary building.

The letter of intent which was signed by the parties during summer 2012 has thus been confirmed as a binding agreement.

The existing property today consists of a total space exceeding 22 000 square meters, and the parties have agreed to expand the building by about 3 600 square meters. The building extension will be ready during summer 2014, and the lease term for the aggregate building mass has been extended to 2031.

For the existing building, rent level will be reduced by about ten per cent as from the former lease expiration in 2021. The agreement to expand the building mass has been entered into on the basis of a fixed price which is estimated to be just below NOK 90 million. Annual rent for the supplementary building is agreed at about NOK 7.6 million for a lease term of 17 years.

CEO Olav Line says in a comment:

“It is with great pleasure we confirm that Norwegian Property and Total E&P have reached an agreement for a long term solution which enables good utilization and a positive development of the property in Finnestadveien 44. Total E&P is already a key customer of Norwegian Property, and we are glad that we have managed to find a solution which satisfies their desire to grow and to have a long term presence in Stavanger with Norwegian Property.”

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

For additional information, please contact:

Olav Line, CEO, tel. +47 482 54 149, ol@npro.no
Aili Klami, EVP Leasing & Marketing, tlf. +47 952 64 555, ak@npro.no
Elise Heidenreich-Andersen, SVP IR, tel. +47 951 41 147, eha@npro.no

Norwegian Property is a focused and fully integrated office property company with 42 properties located in the Oslo area and Stavanger in Norway. The portfolio, which has a total fair value of NOK 14.5 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.

www.npro.no