Norwegian Property has entered into an agreement for the sale of Grev Wedels plass 9, Oslo. The gross property value is NOK 773 million (net purchase price after discount for deferred tax is NOK 738 million).  Net rent for 2008 is NOK 42.7 million, which implies a net yield of 5.5%.  The buyer is UBS Real Estate Kapitalanlagegesellschaft on behalf of its real estate fund "UBS (D) Euroinvest Immobilien".

 

The property value is NOK 23.7 million above valuation as per 30 June 2008. The transaction will release approximately NOK 120 million in cash and will be completed in January 2009.

 

Profit from the sales will mainly be used for payment of interest bearing debt. The company's Loan to Value per 30 June 2008 is being reduced to 73.9% on a pro forma basis. The payment results in a reduction of the company's floating debt and an increase of the hedging ratio to around 77%. Taken into consideration the effects of the earlier completed rights issue and the sales of Grev Wedels plass 9 - average interest rate per 30 June would consequently have been 5.41% (down from 5.50% as reported per 30 June). 

 

"The market has always responded positively on our properties. Even if the macro picture changes, good properties are always attractive. The sale of Grev Wedels plass 9 shows exactly this. As a consequence of the fact that the transaction market in Norway has changed, we have cooperated with financially strong foreign actors who see opportunities in the Norwegian market. This sale shows that we achieve a better price than the current valuation per 30 June. We believe that potential future sales will indicate the same" says  Petter Jansen, CEO of Norwegian Property.

 

For further information please contact:

 

Petter Jansen, CEO, Norwegian Property ASA, +47 9009 8728

Dag Fladby, CIO, Norwegian Property ASA, +47 9089 1935