NPRO extends lease with DnBNOR at Aker Brygge

Norwegian Property (NPRO) and DnBNOR have agreed to extend the existing lease contract at Aker Brygge until end-March 2013. The new contract which is valid from 28 September 2011 encompass an office area of 23,000 m² and a storage area of 2,428 m².

The agreed rental price is NOK 3,300 per m² of office space and NOK 1,600 per m² of storage space. The rent is 100% CPI adjusted yearly using the CPI index as of 15 June 2009. The extension is agreed based upon "as-is" terms, i.e. no investment obligations for the lessor. The extension implies a yearly rent increase of about NOK 10.1 mln (14,5%) measured by 2009 figures, to a new yearly total of NOK 79.8 mln.

'It is well known that DnBNOR is moving from Aker Brygge to their new headquarters in Bjørvika when their new headquarters are completed in a few years' time. When entering into this agreement, we wanted to offer our tenant DnBNOR an extension at an attractive level, where we in return get an even more predictable cash flow for our total office portfolio through a contract with a very solid tenant. Norwegian Property's office portfolio has currently a very low vacancy level (less than 1%), but the number of contracts for re-negotiation is expected to increase somewhat towards 2011/2012. We put off a considerable part of this total area to 2013 through this agreement,' said CEO Petter Jansen.