(Oslo, 30 April 2008) Norwegian Property ASA/Oslo Properties AS has received an offer for Norgani Hotels AS. A letter of intent has today been entered into with a group of buyers which is granted exclusivity to medio May 2008. The name of the group will be disclosed after signing of a share purchase agreement.
 
The offer represents an enterprise value of NOK 11.1bn in addition to a compensation for Norgani's net cash generation in the 1st half of 2008 estimated to approximately NOK 0.1bn.
 
A completed transaction will settle all the company's obligations to all its partners in Oslo Properties AS (including EQT) and release approximately NOK 0.5bn in cash for Norwegian Property.  Norwegian Property's initial equity investment in Oslo Properties AS was NOKm 350 made in October 2007.
 
Norwegian Property/Oslo Properties have entered into a letter of intent with the potential buyers setting out the following main dates for the process up to closing:
 
  •          Medio May 2008:     
    • o        Signing of share purchase agreement
    o        Due diligence 1st phase finalised
    o        Investment committee approval
    o        Committed financing
     
  •          Medio June 2008
    • o        Confirmatory due diligence
    o        Expected closing
     
    "This transaction will solve all short term financial challenges. Further more the capital gain and cash release creates a favourable investment muscle in a market with great opportunities", says Petter Jansen, CEO and President.
     
    "It has been important for Norwegian Property to visualise valuation reflected in the balance sheet, off load debt obligations and eliminate a possible large and dilutive share issue. The upcoming trade sale of Norgani Hotels documents a good and shareholder friendly investment, though more short term than expected. The transaction confirms the book value of the properties as presented in the 1st quarter presentation",  Petter Jansen continues.
     
    Following completion of a transaction the Norwegian Property group will have a solid financial platform:
     
    - Debt level (Loan to Value) of Norwegian Property group will be below 70%.
    - Effective interest hedging ratio will be close to 90% and at levels significantly below the current market interest rates.
    - Approximately NOK 1bn in cash position after dividends that offers strong financial flexibility.
     
     
    Contact:
    Petter Jansen, CEO, Norwegian Property ASA, tel. +47 90 09 87 28
     
     
    Facts about Norwegian Property ASA:
    Norwegian Property ASA is a Norwegian property company which mainly invests in larger commercial properties with central locations in the major cities of Norway. The company currently owns 52 office and retail properties in Norway and 74 hotels and conference centers in Norway, Sweden, Finland and Denmark. The real estate portfolio consists of 681,300 square meters of office/retail properties and 671,080 square meters of hotel/conference properties. Book value of the properties as of 31 March 2008 was approximately NOK 31.5bn.