Aker ASA: Fornebuporten offices sold to Norwegian real estate consortium for NOK 3.2 billion
Fornebuporten Holding AS, an indirect subsidiary of Aker ASA, has signed an agreement to sell its shares in Fornebuporten AS to a Norwegian real estate consortium led by Pareto Securities AS. The transaction values the Fornebuporten offices at NOK 3.2 billion.
The seller has subscribed to 25 per cent of the shares in the real estate consortium, named Fornebu Gateway AS, for NOK 325 million. The remaining shareholders and their respective stakes are as follows:
- Joh. Johannson Handel AS: 40 per cent
- Watrium AS: 20 per cent
- The Resource Group TRG AS, controlled by Aker's Chairman and principal shareholder Kjell Inge Røkke: 15 per cent.
All shareholders have subscribed to the same property value terms.
The sales agreement comprises the office real estate development at Fornebuporten, of which approximately two-thirds is completed. The project is scheduled for full completion in the second quarter of 2016 and is progressing according to plan. The updated project budget is estimated at NOK 2.8 billion, including office modifications requested by tenants. The transaction is structured as a forward sale that makes Fornebuporten Holding responsible for completing the development project.
The two office buildings at Fornebuporten have lease contract durations of around 12 years. Gross total rent for the office buildings, including annuity rent and parking space is approximately NOK 180 million per annum.
The transaction is expected to be completed in the fourth quarter of 2015.
Aker will receive NOK 600 million from Fornebuporten Holding, net of debt repayments and investments. The majority of the payment to Aker will be disbursed in the fourth quarter of 2015, and the remainder will be paid out in the first half of 2016.
Arctic Securities ASA and Pangea Property Partners AS acted as financial advisers to Fornebuporten Holding.
Fornebuporten Holding is a real estate developer engaged in the development of offices and residential housing projects in Oslo and Aberdeen. The company was established in 2011 with the acquisition of a 90,000 sqm development site at Fornebu outside Oslo, for NOK 800 million. Regulatory approval was obtained in 2012 for the construction of 100,000 sqm of office, retail and residential housing space at Fornebu.
The first phase of the Fornebu development includes the construction of two buildings for office and commercial purposes (approx. 67,000 sqm combined) and 295 residential apartments (approx. 16,000 sqm combined). Phase 1 will reach completion in the second quarter of 2016.
Phase 2 will start in 2016 and will comprise the construction of approx.150 residential apartments, built in a 50-50 joint venture with Profier AS. Fornebuporten Holding is also acquiring Bekkestuene Bolig AS, a late-stage development project with 58 apartments to be completed in 2016. Fornebuporten Holding is in discussions with the local municipality regarding the possible additional development of approx. 100,000 sqm of land at Fornebu at a later stage, as part of the planned construction of a metro line to Fornebuporten.
Fornebuporten is a subsidiary of Aker Capital AS, which is fully-owned by Aker.
Marianne Stigset, Head of Investor Relations
Phone: +47 24 13 00 66
Mobile: +47 41 18 84 82
Atle Kigen, Head of Corporate Communications
Phone: +47 24 13 00 08
Mobile: +47 907 84 878
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.