Listed investor Norwegian Property has acquired telecoms group Telenor's headquarters building in Fornebu outside Oslo in a sale-and-leaseback deal which values the property at a net NOK 5 bn (€455 mln).
The deal is being structured as a share transaction with Norwegian Property's holding company NPRO Holding AS acquiring 100% of the shares in Snarøyveien 30 AS, the owner of the building. The takeover will take place in December, following approval from the competition authorities.
Telenor is the largest of several long-lease tenants in the 260,000 m2 property, with a 25-year lease representing approximately one-third of the income in the building. The run rate at 1 January 2021 is estimated to be NOK 335 mln. Other tenants include Tieto Evry and ABB.
Norwegian Property said it will finance 65% of the purchase price via a 10-year bilateral loan. The group has unsecured property at Aker Brygge in Oslo which will be used as security for bank credit facilities, possibly in combination with bond loans and the group's own cash balance to make up the remaining amount. The board is also authorised to issue up to 49.89 million new shares in the company.
Commenting on the deal, NPRO CEO Bent Oustad said: 'It is with great enthusiasm and respect that we have reached agreement with Telenor today on the purchase of its property at Snarøyveien 30. This houses the Norwegian headquarters of such companies as Telenor ASA, Telenor Norway, Tieto Evry and ABB.
'We have great ambitions for further development of the property together with new and existing tenants. We already own the neighbouring building, Fornebu Works, at Snarøyveien 36, and will now become the owner of about 260,000 m2 in all of offices and parking at Fornebu.
'We know the district well and believe the development of a new metro line and good infrastructure there fits well with the Oslo region’s future office market. Fornebu is characterised by offices for companies with high levels of expertise in technology, energy, renewables and finance. In addition, come large residential areas. In the years to come, we look forward to developing this district together with our tenants.'
Telenor’s CFO Tone Hegland Bachke added: 'We are pleased with the agreement with Norwegian Property and look forward to continuing our journey in Snarøyveien 30 as a tenant. We are confident that Norwegian Property will continue to develop this signal building and Telenor will remain at Fornebu for the long term.'
Norwegian Property was advised on the deal by law firm Wiersholm, while PwC assisted with financial due diligence.
