Provisional agreement between Veidekke, OBOS and Norwegian Property regarding Middelthuns gate 17 in Oslo
Veidekke and OBOS has signed a provisional agreement with Norwegian Property to purchase Middelthuns gate 17 in Oslo. The property is valued at 700 MNOK, which is 44 MNOK (7%) above the current valuation. The buyer is Nye Hjem AS, a company owned 50/50 by Veidekke Eiendom and OBOS.
The property is fully leased to Nordea Bank Norway ASA until 2016. As previously announced, Norwegian Property has assessed the conversion of the property to residential use as its greatest future potential.
The buyer has made the sale subject to the satisfactory completion of a due diligence, and both the buyer and seller have made the transaction subject to board approval, which includes agreement on a marketable and binding purchase agreement. Agreement on all conditions between the buyer and seller, and the signing of a binding contract are expected to take place at the end of January 2012.
The sale is in line with Norwegian Property's strategy of active portfolio administration.
CEO Olav Line says in a comment: "The greatest potential for the Middelthuns gate 17 property in the medium term lies within its conversion to residential use. NPRO is not a residential development company, and the company's strategy of focusing on rental, development, management and ownership of centrally situated commercial properties (primarily office) within selected commercial clusters, remains unchanged. We are very pleased with commercial terms in the agreement, and we consider the buyer group to be very well suited to develop Middelthuns gate 17 into a good residential project over time. "
"This is a unique development property in an established and very attractive residential area, and one of a few upcoming major housing projects in Oslo West," says Managing Director of Veidekke Eiendom, Arne Giske. "Happily, it also means that we have once again found a joint opportunity with OBOS. Our cooperative experience on the development of Sjølyststranda, and other smaller projects, has shown that our joint expertise and experience contributes to the development of attractive dwellings and provides positive synergies," adds Giske.
"This is an exciting urban development project. The property has a very attractive location in a central area of Oslo," said CEO Martin Mæland in OBOS.
For further information, please contact:
Olav Line, CEO, Norwegian Property ASA, telephone +47 482 54 149
Arne Giske, President and CEO Veidekke Eiendom AS, telephone +47 905 89 526
Jørgen Michelet, Director of Finance and Investor Relations contact for Veidekke ASA, telephone +47 917 43 856
Martin Mæland, CEO, OBOS, telephone +47 907 91 079
www.norwegianproperty.no
www.npro.nowww.obos.no
www.obos.no