Norwegian Property ASA has today finalised the acquisition of 13 properties in Nydalen and at Økern with a total value of mnok 2,199. In connection with the acquisition of this portfolio, Norwegian Property has renegotiated the syndicated loan facility including a margin reduction. In addition the committed facility has been increased by mnok 5,000. Norwegian Property has also granted the main banks a mandate for a bond issue of approximately mnok 2,000 in order to refinance five of Norwegian Property's properties. Average loan margin is expected to decrease to 60 basis points when the bond issue is completed in February (a reduction from 80 basis points as of November 2006). 80% of the Group's interest bearing debt has fixed interest.
 
Norwegian Property has entered an agreement for an important restructuring of the current syndicated loan facitility in order to facilitate a more optimal and long term financing structure for the Group. The average margin for drawings under the Facility has been reduced to 65 basis points as of today (average margin for the Group's total borrowings is today 63 basis points, which is expected to decrease to 60 basis points at the end of February). Part of the agreement is that the facility is increased by mnok 5,000. At the same time Norwegian Property has entered an agreement to initiate refinancing of significant parts of the syndicated facility, in order to further reduce the Group's borrowing cost. This work is expected to be completed during the Second quarter of this year.
 
Norwegian Property has granted Danske Bank A/S, DnB NOR Bank ASA, Nordea Bank Norge ASA and Skandinaviska Enskilda Banken AB (publ) a mandate for a bond issue of approximately mnok 2,000 in order to refinance five of the Group's properties, including two of the recently acquired Nydalen properties. The Bond issue will be open for subscription when Norwegian Property's financial results for the 4th Quarter are made public, medio February 2007.
 
With these agreements Norwegian Property has taken further important steps towards a refinancing of the Group's debt. As previously communicated this refinancing is expected to be completed during the second Quarter of 2007. Average margin on the Group's total borrowing will be approximately 60 basispoints at the end of February, and the ambition is to further reduce this margin, and at the same time significantly improve the amortisation structure.
 
 
For additional information, please contact:
CFO Svein Hov Skjelle, mobil +47 930 55 566