Norwegian Property ASA has entered into an agreement to sell Hovfaret 11 in Oslo to Ragde Eiendom AS. The parties have agreed to a handover of the property in March 2019 at the expiry of the lease contract with the tenant Evry ASA, and Norwegian Property keeps the revenues and the operational responsibility of the property until handover. The transaction has the same structure as the sale of the neighbour property Nedre Skøyen vei 24-26 to Veidekke Eiendom AS, which was entered into in September 2015.

Agreed property value in the transaction is NOK 79 million, of which NOK 5 million as a deposit is due for payment in March 2016. Annual rental revenues (2016) are NOK 13.2 million. Aggregated, nominal value of the rental revenues (excluding any future CPI adjustments), which Norwegian Property will receive in the period until 2019 in addition to the property value, is approximately NOK 41 million. Including the value of estimated net cash flow until March 2019, the calculated net present value of the proceeds is estimated to be marginally above the current valuation of the property.

«Similar to the Nedre Skøyen Vei 24-26 properties, Hovfaret 11 also has a good location close to well established residential areas at Skøyen in Oslo. The current building was originally built in the sixties, and the property is considered to be unmodern compared to standard requirements from new office tenants. We have for some time worked on different projects and alternatives for the property when the current rental contract expires in 2019. A residential conversion, possibly in combination with some commercial usage, appears to be the most value creating alternative in today’s market. We are therefore very happy to enter into a transaction with Ragde Eiendom», Svein Hov Skjelle, CEO of Norwegian Property says.

The sale is in line with Norwegian Property’s strategy of active portfolio development.

For additional information, please contact:

Svein Hov Skjelle, Chief Executive Officer, phone +47 930 55 566

www.norwegianproperty.no (http://www.norwegianproperty.no/)