EN
Announcements
Norwegian Property acquires Drammensveien 144
27.11.2006
Norwegian Property ASA has acquired Drammensveien 144 in Oslo for NOK 356 million. This property is fully occupied by a solid lessee on a long-term lease.
A favourable financing arrangement is taken over, which means that the investment satisfies Norwegian Property's required rate of return on equity.
The property lies in the Skøyen area, where the company already has large holdings.
Drammensveien 144 covers some 11 000 square metres and is leased to Hafslund ASA until the end of 2018. The annual rent is about NOK 19 million, subject to an annual adjustment of 2.5 per cent. Net yield is roughly 5.3 per cent.
As part of the transaction, Norwegian Property will take over an established financing arrangement (75 per cent debt ratio) on very favourable terms. The investment satisfies Norwegian Property's required rate of return of 13-15 per cent.
The property is centrally located at Skøyen, where the company already owns some 117 000 square metres. This will provide the basis for further gains in operational and facility management efficiency.
Further information from
Petter Jansen, president and CEO, Norwegian Property ASA, tel: +47 90 09 87 28
Dag Fladby, Chief Investment Officer, Norwegian Property ASA, tel: +47 90 89 19 35
Norwegian Property in brief
- Invests in attractive and centrally-located commercial property in Norway's largest cities.
- Has invested about NOK 15 billion in 42 quality properties.
- Total area of about 602 000 square metres provides an annual rental income of roughly NOK 902 million.
- Portfolio contains almost no unleased space, and has an average remaining lease term of about 7.8 years.
- Listed on the Oslo Stock Exchange in November 2006. The company has about 1300 shareholders whereof
about 46% of the shares are controlled by foreign investors.