Norwegian Property has entered an agreement for the sale of its 80% share in Forskningsveien 2, Oslo.  The property value (100%) is NOK 668 million and net rent for 2008 is NOK 36,3 million, which imply a net yield of 5,4%. The buyer is a consortium lead by Pareto Private Equity. The sale is in line with Norwegian Property's strategy to actively develop the portfolio and dispose non core properties.

 

The property value is in line with the valuation as of December 31st 2007.  The transaction will release above NOK 140 million.

 

Confirmed financing, including release of change of control clause in existing financing on the property, are condition precedent to closing.  Furthermore pre-emption rights on the shares need to be released.  Until the condition precedents are raised, substantial changes in 10-year NOK swap rate will entail minor changes in the property value.

 

The transaction will be completed in April, 2008.

 

For further information, contact;

Dag Fladby, Chief Investment Officer +47 9089 1935