Norwegian Property has today entered into an agreement to purchase Telenor's building at Fornebu in Snarøyveien 30. The agreement has been entered into between NPRO Holding AS and Telenor Real Estate AS, where NPRO Holding AS buys 100 percent of the shares in Snarøyveien 30 AS. The takeover will take place during December 2020, after approval by the competition authorities.

Gross property value has been agreed at NOK 5,450 million. 65 percent of the purchase price will be financed with a 10-year bilateral loan. The group has unsecured property at Aker Brygge which will be used as security for bank withdrawal facilities, possibly in combination with bond loans and the company's cash balance can be used for the remaining amount. The board is also authorized to issue up to 49.89 million new shares in the company.

The building has several solid tenants with long leases, of which Telenor is the largest. Telenor has entered into a 25-year lease of approximately 1/3 of the income in the building. Run rate as of 1 January 2021 is estimated at NOK 335 million.

This is a strategically important acquisition for NPRO, which entails an increased investment in Fornebu. This strengthens the company's position in an area that is under development. Following the transaction, the group will have three clear geographical focus areas: Oslo CBD, Nydalen and Fornebu.

"It is with great enthusiasm and humility that we have today reached an agreement with Telenor on the purchase of their property on Snarøyveien 30. The property houses the headquarters of Telenor ASA, Telenor Norway, Tieto Evry and ABB, among others. We have great ambitions for further development of the property together with existing and new tenants. We previously owned the neighboring building Fornebu WORKS in Snarøyveien 36, and in total we now become the owner of approximately 260,000 sqm with office and parking at Fornebu. We know the area well, and the development with a new metro line and good infrastructure in the area we believe fits into the office market of the future. Fornebu is characterized by office workplaces for companies with high competence in technology, energy, renewables and finance, in addition to large residential areas. We look forward to developing the area together with the tenants in the future," says CEO Bent Oustad.

“This acquisition is in line with the company's growth strategy and will contribute to long-term value creation in the years to come. With the acquisition, we have established our third office cluster in addition to Nydalen and Oslo CBD, where we already own a significant property portfolio," says Kathrine Astrup Fredriksen.

The law firm Wiersholm has been Norwegian Property's legal advisor, while PwC has assisted with financial DD in the transaction.