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Norwegian Property, in which billionaire John Fredriksen is the largest owner, has signed an agreement to buy Telenor’s head office in Fornebu on the outskirts of Oslo.
The gross value of the property in the transaction is NKr 5.45 billion, but the net purchase price will be approximately NKr 5 billion, according to a company statement.
At the same time, it is clear that Telenor has entered into a lease for parts of the premises for the next 25 years.
Kathrine Astrup Fredriksen, Board Member for Norwegian Property, says in a message:
– This acquisition is in line with the company’s growth strategy and will contribute to the creation of long-term value in the coming years. With the acquisition, we have established our third group of offices in addition to Nydalen and Oslo CBD, where we already have a significant portfolio of properties.
Authorization to issue new shares
65 percent of the purchase price will be financed with a ten-year bilateral loan. The group has unsecured property in Aker Brygge that will be used as collateral for lines of credit at the bank, possibly in combination with bond loans and the company’s cash balance can be used for the remaining amount, writes Norwegian Property in the report.
The gross value of the property in the transaction is NOK 5.45 billion, and regular adjustments to the property value will be made for tax returns and for certain other items. The net purchase price will be approx. five billion to be paid upon completion, according to the report.
In addition, the company claims that the board of directors has been authorized to issue up to 49.89 million new shares of the company. Based on today’s closing price of NOK 11.25, this corresponds to around NOK 550 million.
It is with great enthusiasm and humility that today we have reached an agreement with Telenor on the purchase of their property at Snarøyveien 30. We have high ambitions for further development of the property together with new and existing tenants, says Bent Oustad, manager of the owned by Norwegian, in the report. .
John Fredriksen is the largest owner of Norwegian Property through Gerevan Holding. Daughters Kathrine and Cecilie are members of the board of Norwegian Property. (Photo: Elin Høyland)
335 million in the year
Telenor is the largest tenant and has signed a 25-year lease for approximately one-third of the building’s income. The annual rent as of January 1 is estimated at NOK 335 million.
– We are satisfied with the agreement with Norwegian Property and look forward to continuing our journey at Snarøyveien 30 as tenants. We are confident that Norwegian Property will continue to develop this signal building and Telenor will remain in Fornebu for the long term, says Telenor CFO Tone Hegland Bachke.
The sale is part of Telenor’s simplification program as announced on capital market day. The headquarters was built in 2002 and Telenor now uses approx. 40 percent of office space, it is said.
In Fornebu, Telenor owns 153,000 square meters of office space and a 45,000-square-meter parking area with space for around 1,700 cars.
5,500 people work in the buildings that Telenor owns in Fornebu, of which approximately 3,200 are Telenor employees.
On Telenor’s capital market day in early March, CFO Jørgen A. Rostrup stated that the head office rental income amounts to NOK 400 million per year, including rent from Telenor.
Arctic Securities and UNION Næringsmegling have acted as financial advisers to Telenor in the transaction, while the Haavind law firm has been legal adviser.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content may only be done with written permission or as permitted by law. For more terms, see here.
