OSLO: As part of it’s simplification programme, Telenor has decided to sell the headquarter office building at Fornebu, Norway (HQ) to NPRO Holding AS, a wholly owned subsidiary of Norwegian Property ASA (NPRO).
The net purchase price will be approximately NOK 5 billion, which will be received on completion. As part of the transaction, Telenor will lease back parts of HQ for 25 years (approximately 25%) and parts for 7 year (approximately 15%), both with options to extend.
Telenor HQ was built in 2002 as a modern and innovative workplace that defined the Telenor way of work. With Telenor now occupying approximately 40% of the office space, the timing is right for a professional real estate company to assume ownership.
NPRO is a Norwegian, listed real estate specialist that has a large portfolio, including the neighbouring property in Snarøyveien 36. Telenor is confident that Norwegian Property ASA (NPRO) over time will further develop HQ as a vibrant, multi-tenant campus benefitting Telenor and its employees, as well as the area at large.
Telenor will issue a limited guarantee for vacant space, while NPRO will assume ordinary risk for the existing tenants.
“We are pleased with the agreement with Norwegian Property and look forward to continuing our journey at Snarøyveien 30 as a tenant. We are confident that Norwegian Property will continue to develop this signal building and Telenor will remain at Fornebu long term,” says Telenor Group CFO Tone Hegland Bachke.
“We are very excited about the opportunity and look forward to include this iconic building with lot of high-quality tenants in future-oriented industries on long leases into our existing portfolio. With the transaction we will further strengthen our focus at Fornebu, where we have a long-term ambition together with our tenants, to make the Property an attractive working place in continues development with all stakeholders need,” says CEO of Norwegian Property Bent Oustad
Through this transaction, Telenor unlocks capital for value creating corporate purposes. Over time, Telenor’s costs as tenant will be lower than Telenor’s current costs as an owner of HQ.
The divestment will be recognised in Telenor’s financial statements upon completion, which is expected on or about year-end. In accordance with IFRS’ rules on sale-lease-back, Telenor’s accounting gain will be approximately NOK 1.3bn.
Arctic Securities and UNION Næringsmegling have acted as Telenor’s financial advisors and Haavind Law Firm has acted as Telenor’s legal advisor.
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