NPRO: Provisional agreement to sell Middelthuns gate 17
Norwegian Property ASA has signed a provisional agreement to sell Middelthuns gate 17 in Oslo. The property is valued at 700 MNOK, which is 44 MNOK (7%) above the current valuation. The buyer is Nye Hjem AS, a company owned 50/50 by Veidekke Eiendom and OBOS.
The property is fully leased to Nordea Bank Norway ASA until 2016. As previously announced, Norwegian Property has assessed the conversion of the property to residential use as its greatest future potential.
The buyer has made the sale subject to the satisfactory completion of a due diligence, and both the buyer and seller have made the transaction subject to board approval, which includes agreement on a marketable and binding purchase agreement. Agreement on all conditions between the buyer and seller, and the signing of a binding contract are expected to take place by the end of January 2012.
The sale is in line with Norwegian Property's strategy of active portfolio development.
CEO Olav Line says in a comment: "The greatest potential for the Middelthuns gate 17 property lies within its conversion to residential use. NPRO is not a residential development company, and the company's strategy of focusing on rental, development, management and ownership of centrally situated office properties within selected commercial clusters, remains unchanged. We are very pleased with commercial terms in the agreement, and we consider the buyer group to be very well qualified to develop Middelthuns gate 17 into an attractive residential project over time. "
"This is a unique development property in an established and very attractive residential area, and one of a few upcoming major housing projects in Oslo West," says Managing Director of Veidekke Eiendom, Arne Giske. "Happily, it also means that we have once again found a joint opportunity with OBOS. Our cooperative experience on the development of Sjølyststranda, and other smaller projects, has shown that our joint expertise and experience contributes to the development of attractive dwellings and provides positive synergies," adds Giske.
“This is an exciting urban development project. The property has a very attractive location in a central area of Oslo,” said CEO Martin Mæland in OBOS.
This information is subject of the disclosure requirements acc. to § 5-12
For further information, please contact:
Olav Line, CEO, Norwegian Property, telephone +47 482 54 149
Arne Giske, President and CEO, Veidekke Eiendom AS, telephone +47 905 89 526
Jørgen Michelet, Director of Finance and Investor Relations contact for Veidekke ASA, telephone +47 917 43 856
Martin Mæland, CEO, OBOS, telephone +47 907 91 079
Norwegian Property is a focused and fully integrated office property company with 47 properties located in the Oslo area and Stavanger in Norway. The portfolio, which has a total fair value of NOK 15.6 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.