The purchase price for 100 percent of the shares has been agreed at NOK 100 million. The property's existing loan will be continued until 15 December 2023, which is also the original maturity date for the loan. During the autumn, the board of Norwegian Property ASA will consider issuing new shares in the company in connection with the long-term financing of the purchase.
The iconic building in Kvadraturen has been completely rehabilitated, and was ready for tenants to move in at the end of 2020. The building has several solid tenants with long leases, of which Nordic Office of Architecture / Norconsult is the largest. Annual rental income per 30/09-2023 is NOK 90 million.
The NPRO group has three clear geographical areas of focus: Oslo CBD, Nydalen and Fornebu, and this is a strategically important purchase for NPRO that entails an increased investment in the CBD.
CEO, Bent Oustad, states: "It is with great enthusiasm that we have reached an agreement with approx. 95 percent of the owners of Telegrafen Invest regarding the purchase of their shares in the Telegrafen property at Kongens gate 21. We are continuously looking for quality buildings, with good tenants for a reasonable amount of money that can help further develop our portfolio in the CBD. The telegraph in its current form fits perfectly into our portfolio. The property is environmentally classified Breeam-in-use Excellent, has a central location and proximity to public transport and thus fulfills important requirements in our sustainability strategy."
Kathrine Astrup Fredriksen states: "The purchase is in line with the company's growth strategy where we are also opportunistically able to exploit events in the market. The building was built 100 years ago and was completely rehabilitated in 2020. We will contribute to long-term value creation in the years to come, and look forward to the next 100 years. With the purchase, we have expanded our exposure in the center of Oslo, where we already own a significant amount of property."