Norwegian Property expands portfolio by 28 000 sq.m

Norwegian Property ASA (Norwegian over-the-counter market: NPRO) has signed a letter of intent with Astrup Fearnley AS on acquiring Grev Wedels Plass 9 in Oslo for NOK 755 million after tax.
With a total area of some 28 000 square metres, this building houses such tenants as the Astrup Fearnley Museum of Modern Art, business daily Dagens Næringsliv and several Astrup Fearnley companies.
The leases have an average remaining term of about seven years, and the building is fully occupied.
Plans call for the transaction to be implemented during August, subject to the usual conditions concerning due diligence, final financing and the final contract.
Following this acquisition, Norwegian Property's portfolio will comprise 41 freeholds - including 40 which have already been taken over.
Their total area will be close to 533 000 square metres, with an average size of 13 000 square metres. Covering than 99.5 per cent of the properties, existing leases will have an the average remaining term of 7.8 years.
Including the latest transaction the company has invested almost NOK 13.5 billion in Norwegian real property. Gross rental income for the year from 1 July 2006 is close to NOK 815 million.
The property portfolio has been acquired at an average implicit net yield after tax adjustments of approximately six per cent.
Norwegian Property ASA in brief
Norwegian Property ASA will offer investors a liquid investment option exposed to commercial property in Norway. It invests in large, centrally-located commercial properties in the main Norwegian towns. The long-term aim is to become the biggest and most liquid investment option in Norway's commercial property market.The company is listed on Norway's over-the-counter market with the ticker code NPRO, and intends to apply for a listing on the Oslo Stock Exchange during the second half of 2006.
Further information from
Egil Sundbye, director, Norwegian Property ASA, tel: +47 45 00 53 02