Announcements
NPRO: Acquisition of the Telegrafen property in Oslo CBD
As of 27th October, Norwegian Property has entered into an agreement to acquire 94.1% of the shares in Telegrafen Invest AS. The company is 100% owner of the property "Telegrafen" situated in Kongens gate 21 in Oslo, CBD. The agreement has been entered into between NPRO Holding AS and the owners of Telegrafen Invest AS.
The purchase price for 100% of the shares is agreed at NOK 100 million. The property's existing financing will be continued until December 15th, 2023, which is also the original maturity date of the loan. During the autumn, the Board of Directors of Norwegian Property ASA will consider issuing new shares in the company in connection with the long-term financing of the acquisition.
The iconic building in Kvadraturen has been completely renovated and was ready for tenants to move in at the end of 2020. The building has several solid tenants with long leases, of which the Nordic Office of Architecture / Norconsult is the largest. Annual rental income as of 30th September 2023 is NOK 90 million.
The Norwegian Property Group has three clear geographical focus areas: Oslo CBD, Nydalen and Fornebu, and this is a strategically important acquisition for NPRO, which entails an increased focus on CBD.
CEO, Bent Oustad, says: "It is with great enthusiasm that we have reached agreement with approximately 95% of the owners of Telegrafen Invest to purchase their shares in the property Telegrafen in Kongens gate 21. We are constantly looking for quality buildings, with good tenants at a reasonable price who can help further develop our portfolio in CBD. The Telegrafen in today's form fits perfectly into our portfolio. The property is environmentally classified Breeam-in-use Excellent, centrally located and close to public transportation which fulfills several important requirements in NPRO’s sustainability strategy."
Kathrine Astrup Fredriksen says: "The acquisition is in line with the company's growth strategy, and we have also been opportunistic and able to exploit market events. The building was constructed 100 years ago and was completely renovated in 2020. We will contribute to long-term value creation in the years to come, and look forward to the next 100 years. With this acquisition, we have expanded our exposure in Oslo CBD, where we already own a significant property portfolio."
For further information, please contact:
Bent Oustad, CEO, mobile: +47 4801 6082, e-mail: bo@npro.no
Haavard Rønning, CFO, mobile. +47 400 200 19, e-mail: hr@npro.no
This information is subject of the disclosure requirements according to §5-12 of the Norwegian Securities Trading Act (’Verdipapirhandelloven’).