Norwegian Property ASA (NOTC: NPRO) has entered into a contract with Høegh Invest Eiendom AS for the acquisition of Drammensveien 134 (building 2-6) and 149 ("the Esso-building"). The acquisition price is approximately 1 billion NOK.
 
Norwegian Property ASA will acquire Drammensveien 134 (building 2 - 5), Drammensveien 134 (building 6 - the parking area) and Drammensveien 149 ("the Esso building"). The properties have a total area of approximately 44.000 sqm. Yearly gross rent is currently 59.9 million NOK. The average duration of the lease contracts is 4.9 years. The acquisition price implies a net yield after tax of 5.5 percent.
 
Norwegian Property judges the current rent level to be below market rent in the Skøyen area, implying an upside potential when contracts are re-negotiated. The properties have a potential for further development, including a pre-emptive right for the acquisition of the neighbouring property to Drammensveien 149 (the Esso gasoline station).
 
In addition to these transactions Norwegian Property ASA will, in a separate transaction, acquire Høegh Invest Eiendom's remaining 25 percent stake in Drammensveien 134 KS (ownership of Drammensveien 134 - building 1, and the office section of building number 6). Norwegian Property's share of Drammensveien 134 thus increases to 100 percent. Norwegian Property ASA has now acquired all properties from the portfolio of Høegh Eiendom Invest in the Skøyen area.
 
After this transaction Norwegian Property ASA holds a total of 106.000 sqm of office property in the Skøyen area, generating a gross rent in the coming four quarters of about 174 million NOK.
 
After closing of this transaction, and including the expected closing of two contracts currently signed as letters of intent, Norwegian Property ASA will have a portfolio of 40 properties, with a total area of about 505.000 sqm. The average duration of the lease contracts in the portfolio is 7.8 years, with a vacancy of less than 1 percent. The total acquisition price will have been approximately 12.7 billion NOK. Gross rent the coming four quarters will be approximately 770 million NOK. The properties are - on average -acquired at an implicit net yield after tax of about 6 percent.
 
Norwegian Property stated in a OTC-notice on 12 June that the company was negotiation purchase contracts for at total value of about 2 - 3 billion NOK. The properties in Drammensveien 134 and 149 were among these properties, together with "the Ibsen-block". In addition to this, the company has initiated processes which may lead to the acquisition of properties valued at about 2 - 2.5 billion NOK.
 
 
About Norwegian Property ASA
Norwegian Property ASA will offer investors a liquid investment alternative with exposure towards Norwegian commercial real-estate. The company will invest in larger, centrally located properties in the largest Norwegian cities. The long term target is to become the largest and most liquid investment alternative within Norwegian commercial real-estate. Norwegian Property ASA is listed on the Norwegian OTC-list (NOTC), with the ticker-code NPRO, and is planning an IPO and listing on the Oslo Stock Exchange during the second half of 2006.
 
For further information: www.norwegianproperty.no
 
Contact:
Norwegian Property ASA, Mr. Knut Brundtland, Chairman, phone: +47 400 62 020