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Telenor will continue as a long-term tenant when Norwegian Property, controlled by John Fredriksen, becomes the new owner of the building in Fornebu in December.
SOLD: Telenor Norway is based at Snarøyveien 30 in Fornebu.
Håkon Mosvold Larsen / NTB
Published:,
On Tuesday, Norwegian Property signed an agreement with Telenor Real Estate AS to purchase 100 percent of the shares of Snarøyveien 30 AS, which owns the Telenor building in Fornebu at Snarøyveien 30.
This is stated in an announcement on the Norwegian Property stock exchange.
The gross value of the property has been agreed at NOK 5.45 billion. The net purchase price will be approx. NOK 5 billion, is stated in a Telenor stock announcement.
Telenor continues as a tenant
The acquisition will take place during December 2020, after approval by the competition authorities.
Telenor is the largest of several long-term tenants in the building and has committed to renting for the next 25 years. The building houses the headquarters of, among others, Telenor ASA, Telenor Norway, Tieto Evry and ABB.
– 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 in the Telenor Stock Exchange announcement.
The sale will be recognized in Telenor’s financial reports upon completion, which is expected at or around the end of the year.
Part of Norwegian Property’s growth strategy
Norwegian Property is controlled by John Fredriksen’s Geveran Trading, who owns 80.52 percent of the company.
The second largest owner is Folketrygdfondet with 14.79 percent.
The acquisition of Snarøyveien 30 is a strategically important acquisition for the company, which involves further investment in Fornebu, according to the stock exchange announcement.
– This acquisition is in line with the company’s growth strategy and will contribute to long-term value creation in the coming years, says board member Kathrine Astrup Fredriksen of Norwegian Property in the report.
– 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, he says.
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Considering selling the entire Norwegian real estate portfolio
They have considered sales for a long period of time.
It has been a year and a half since it became known that Telenor is considering selling the entire Norwegian real estate portfolio, in connection with a major modernization process that began in 2017.
A possible property sale was then justified on the grounds that the properties in their day were important to telephone exchanges and other functions that are now out of date.
The Fornebu headquarters was built in 2002.
Telenor now uses approx. 40 percent of office space and “the timing for a sale to a professional real estate company is right,” the company wrote in the stock exchange announcement Tuesday night.
The case is being updated.
Read Norwegian Property’s Stock Exchange announcement here. Read the announcement of the Telenor Stock Exchange here.
