Entra ASA : Detailed stock exchange notice - Buying a 61,000 sqm property portfolio at Skøyen in Oslo
Entra has signed an agreement to buy three high quality office properties at
Skøyen in Oslo from Norwegian Property ASA. The portfolio comprise about 61,000
sqm gross area, of which around 43,100 sqm office and 2,700 sqm retail. Total
transaction price is approximately NOK 2.5 bn.
The transaction is in line with Entra's strategy of growth in central areas of
the largest cities in Norway. Skøyen is one of Oslo's most attractive office,
retail and residential areas and is one of the city's main transportation hubs.
The portfolio is 95% let to high quality tenants with an average remaining lease
term of 6.2 years.
"Entra has a very positive outlook on Skøyen and is pleased to take up a
significant position through this acquisition. This central and modern portfolio
ticks the boxes for Entra strategically and provides significant portfolio and
earnings growth going forward", said Arve Regland, Entra's CEO.
The transaction:
The transaction is structured as an acquisition of five legal entities that own
the three properties Verkstedveien 1, Verkstedveien 3 and Drammensveien 134. The
transaction does not involve any employees. Financing of the transaction is
secured through debt with a mix of new bond issue of NOK 1.7 bn and existing
bank facilities. The combined financing has an average interest cost of 2.1% and
an average time to maturity of 5.5 years. The transaction will bring Entra's
loan-to value up to 49 % (pro forma as of 31.03.16). Closing is expected to
take place on 1 September 2016.
Key figures of the property portfolio:
Property: Verkstedvn. 1 Drammensvn. 134 Verkstedvn. 3 Total portfolio
-------------------------------------------------------------------------------
Gross area (sqm) 31,691 20,931 8,387 61,009
- Office (sqm): 26,399 9,879 6,782 43,061
- No of parking 19/1 288/21 26/16 333/38
spaces (in/out):
-------------------------------------------------------------------------------
Gross rent (NOKm 129
2016e):
Net operating income (NOKm, 123
2016e):
-------------------------------------------------------------------------------
Occupancy (%): 92 100 100 95
WAULT (yrs): 7.5 4.0 4.8 6.2
Construction year: 2015 2004/2005 2001
Tenure: Freehold Freehold Freehold
-------------------------------------------------------------------------------
Historical financial figures (reflecting that Verkstedveien 1 was a development
project until Q2 2015:
NOKm 2013 2014 2015 Q1 2016
-----------------------------------------------------------
Total income 56 50 83 30
Direct property costs 8 5 7 2
Net operating income 48 46 76 28
Book value as of 31.12 1,499 2,025 2,358 2,387
-----------------------------------------------------------
The transaction is subject to approval from the Norwegian Competition Authority.
Oslo, 1 June 2016
Entra ASA
For further queries please contact: Arve Regland, CEO Entra ASA, tel:
+47 479 07 700, email: ar@entra.no.
Entra ASA
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 market value of the property portfolio is around NOK 30 bn.
The portfolio is primarily located in Oslo and the surrounding region, Bergen,
Stavanger and Trondheim. Entra ASA is listed on Oslo Børs with ticker ENTRA.
Norwegian Property ASA
Norwegian Property ASA was established in 2006, focusing on office properties in
the largest urban areas in Norway. Norwegian Property's current portfolio
comprises 38 assets mainly located in the Oslo region. Norwegian Property ASA is
listed on Oslo Børs with ticker NPRO.
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
[HUG#2016985]