Oslo, 14 December 2015 - Reference is made to the
stock exchange notice of 16 November 2015. Entra and
Steen & Strøm AS have signed an unconditional share
purchase agreement with DNB Kjøpesenter og Hotell AS
confirming acquisition of all shares in Oslo City
Kjøpesenter AS, owner of Oslo City.
Oslo City is a combined shopping centre and office
property of 80,535 sqm. Entra will acquire the offices
and Steen & Strøm the shopping center. The parking
basement will be held 50/50. Oslo City was completed
in 1988 and enjoys a prime location next to the Oslo
Central Station.
"This property is a perfect fit for Entra with its
central location close to Norway's largest public
transport hub and with the offices mainly let to
public tenants. Oslo City is adjacent to the largest
building in our portfolio and is located in an area
where we see significant growth opportunities" said
Arve Regland, Entra's CEO.
Entra's share of the property value is approximately
NOK 1.65 bn of the NOK 5 bn total property value.
Entra will finance the transaction through existing
debt facilities. Closing is expected by year-end 2015.
Key figures for Entra's part of Oslo City:
No of sqm office: 33,300
No of parking spaces: 170
Occupancy: 100 %
WAULT (office) as of 31.12.15: 4 yrs
12 months rolling rent (2016e): NOKm 94.7
Transaction structure:
Entra and Steen & Strøm will together acquire 100 % of
the shares in Oslo City Kjøpesenter AS
(the "Acquisition"). The property will as soon as
possible be sectioned and Oslo City Kjøpesenter AS
will be demerged into three separate companies owning
the offices, the shopping centre and the parking
basement, respectively (the "Demerger"). Entra will
own all the shares in the office company and 50 % of
the shares in the parking basement company, while the
rest will be owned by Steen & Strøm. Until the
Demerger is finalised Entra will hold 33 % of the
shares in Oslo City Kjøpesenter AS and the
shareholding will be treated as an associated company
according to the equity method in Entra's accounts.
The Demerger is expected to be finalised within the
first half of 2016 and will have accounting effect
from closing of the Acquisition. During the period
commencing from the closing of the Acquisition and
ending on the effective date of the Demerger, the
relationship and allocation of assets, liabilities and
risks between Entra and Steen & Strøm will be as if
the Demerger had taken place on the closing of the
Acquisition.
Key figures for Oslo City Kjøpesenter AS for 2012-2014:
(NOKm) 2012 2013 2014
Income statement:
Total income 277 280 292
Direct property costs 18 26 18
Net operating income 214 211 229
Operating profit 182 173 191
Profit after tax 135 139 144
2012
2013
2014
Balance sheet:
Total assets 3,923 3,985 3,533
Total liabilities 478 539 385
Total debt 191 242 76
Total equity 3,445 3,445 3,148
The functions as managing director and board of
directors in Oslo City Kjøpesenter AS are currently
held by representatives of DNB Livsforsikring and will
be replaced by representatives of Entra and Steen &
Strøm from closing of the of the Acquisition. There
are no employees in Oslo City Kjøpesenter AS.
For further queries please contact: Arve Regland, CEO
Entra ASA, tel: +47 479 07700, email:
arve.regland@entra.no.
About Entra
Entra is a leading owner, manager and developer of
office properties in Norway. Entra owns and manages
around 100 properties totalling approximately 1.2
million square meters. The portfolio is primarily
located in Oslo and the surrounding region, Bergen,
Stavanger and Trondheim.
About Steen & Strøm
Steen & Strøm is the leading shopping center company
in Scandinavia. Steen & Strøm owns and manages 22
shopping centres in Norway, Sweden and Denmark. Steen
& Strøm is owned by Europe's leading shopping centre
company Klepierre (56.1 %) and the Dutch pension fund
APG (43.9%).
This information is subject to the disclosure
requirements pursuant to section 5-12 of the Norwegian
Securities Trading Act.