Announcements
NPRO - insources property management
Norwegian Property has entered into a revised agreement with NEAS implying that Norwegian Property from 1 May 2011 insources the property management of the office properties in Oslo. The agreement on property management of the properties in Stavanger will be effective also after 1 May 2011, but with a 12 months mutual termination clause. Existing agreements on joint services will run also after 1 May 2011.
The new agreement implies that NEAS current guarantee related to the current agreements are terminated. For the services rendered Norwegian Property will pay normal market based compensation.
Norwegian Property's maintenance- and property expenses are expected to be at current level also going forward. Norwegian Property will pay a termination fee of NOK 5 million.
Norwegian Property's ambition is to be a fully integrated property company with high quality in all parts of the value chain. Norwegian Property is in the process of establishing an organisation for property management to be prepared for the take over of the operation from NEAS on 1 May 2011. In the transition period a team consisting of three persons will relocate to Norwegian Property's offices. The purpose is the secure transformation of competence and a good service to the tenants during the transition period.
This information is subject to the disclosure requirements according to § 5-12 vphl (Norwegian Securities Trading Act).
For further information, please contact:
Olav Line, CEO, phone +47 48 25 41 49