Norwegian Property sells assets for EUR 104m

Oslo-based investor Norwegian Property said Friday it has sold three non-core assets to a consortium led by Patero Private Equity for NOK 823 mln (EUR 104 mln). Specifically, it has agreed to sell the Ostre Aker vei 20 and 22 properties at Okern in Oslo for NOK 155 mln while an 80% stake will be sold in its Forskningsveien 2 property for NOK 668 mln. Norwegian Property said the net rent for 2008 for the Forskningsveien asset was NOK 36.3 mln, implying a net initial yield of 5.4%.

Meanwhile, Norwegian Property also announced 2007 results showing it posted a pretax profit of NOK 1.65 bn in 2007, corresponding to a return on equity for the year of 55.1%. In the fourth quarter alone, the company posted a pretax profit of NOK 111.4 mln on gross rental income of NOK 450.2 mln, with an annualised return on equity for the fourth quarter of equity of 6.5%. Norwegian Property said its board of directors will propose a dividend of NOK 2.50 per share for 2007.

The company also said its book equity per share was NOK 63.20 at the end of the fourth quarter while net asset value per share based on the EPRA-standard was NOK 70.84.

‘Both the Norwegian office market and the Nordic hotel market are impacted by strong demand growth, and supply that is growing at a slower pace,’ said Norwegian Property CEO Petter Jansen. ‘As a result, rents are increasing rapidly both in the office and the hotel markets. Norwegian Property is well positioned to benefit from these favourable market conditions.’

Norwegian Property was established and listed on the Norwegian OTC-list in 2006. It is an investor in large commercial properties in central locations in major Norwegian cities.