Technopolis enters Norway with €220m Oslo deal

Nordic listed property group Technopolis has signed an agreement with IT Fornebu Properties AS (ITFP) to jointly acquire a modern multi-tenant campus in the greater Oslo region, Norway, for an enterprise value of NOK 1.8 bn (€220 mln).

The campus will be owned by a 70-30 joint venture of Technopolis and ITFP, capitalized by 35% in equity and 65% in debt. SEB, Nordea and Swedbank will provide a syndicated loan for the acquisition.

In a statement, Technopolis said that its equity investment in the JV will amount to NOK 441 mln.

To finance the deal, the company intends to carry out a €100 mln rights issue which is supported by its two largest shareholders, Varma Mutual Pension Insurance Company and Ilmarinen Mutual Pension Insurance Company.

The campus is located in the Fornebu area six kilometers west of Oslo CBD in the Baerum municipality.
The property consists of two new buildings and one fully refurbished property, all of which are served by an underground parking facility with 1,200 spaces. The campus has total rentable area of 70,500 m2 and the financial occupancy rate is 90%.

'This acquisition is a big step forward in the realization of our growth targets and our aim to diversify our campus portfolio geographically,' commented Technopolis CEO Keith Silverang. 'The Norwegian economy is doing well, the Fornebu district is on the rise and the campus is an excellent strategic fit.'

The net initial yield for the campus is expected to be 6.7% while the net market yield of the property is 6.4%.

In connection with the transaction Technopolis has agreed with ITFP on an option to acquire an additional 15,000 - 25,000 m2 of office building rights from a neighboring land plot which is owned by ITFP and which is to be re-zoned over the coming five years.

ITFP is a Norwegian real estate company with nine shareholders, led by Norwegian state-owned The Industrial Development Corporation of Norway.

The closing of the transaction is expected to take place by the end of December 2013.

Following the deal, Technopolis will have operations in Finland, Russia, Estonia, Lithuania and in Norway.