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The Norwegian real estate company Entra has entered into an agreement with Gjensidige Forsikring and the Swedish AMF Pensionsförsäkring to buy the company Oslo Areal for around NOK 13.55 billion, according to a statement on Friday.
– We see Oslo Areal as a smaller version of Entra, and the company will strengthen Entra’s market position in Oslo significantly, says Entra CEO Sonja Horn.
17 commercial buildings
Oslo Areal owns and develops commercial real estate in and around Oslo.
The company owns 17 commercial buildings, of which 15 are centrally located in the capital and two are located in Sandvika outside Oslo. The property portfolio consists of 222,000 gross lettable square meters, and according to Entra has significant development potential with regulation of up to 95,000 square meters and a further long-term development potential of around 45,000 square meters.
The office portfolio is currently 94.4 per cent leased with a weighted average lease term of 4.7 years. 12-month rolling rent is estimated to be around NOK 464 million.
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The purchase is financed through existing and new debt facilities, it is stated.
– Oslo Areal fits strategically like a glove for Entra, both in terms of portfolio location and its significant inherent development potential. This transaction enables further profitable growth and increased shareholder value in Entra in the future by using our strong balance sheet, says Chairman of the Board Siri Hatlen in Entra in a statement.
Still in bidding war
The purchase comes shortly after the Swedish real estate company Balder has placed a mandatory bid for the entire Entra, a bid that runs until Tuesday next week.
For over a year, Entra has been a favorite acquisition object among several Swedish stakeholders who have submitted bids for the major Norwegian office building player. The starting shot came in November last year when Ilija Batljans SBB announced that it wanted to devour Entra. A few days later, Castellum threw himself into the fight. And not long after, Balder arrived also into the picture.
In the new year, however, it became clear that the Entra board did not recommend the offer from either SBB or Castellum. SBB then sold all its shares in Entra.
Today, Balder and Castellum each own about a third of the shares in Entra.
The Entra board’s last response to Balder’s mandatory bid was twofold, depending on what kind of view they have of Entra in the future. For shareholders who are “concerned with the shares’ liquidity and / or visibility of future ownership and corporate governance (including dividend policy)”, the board recommends the offer, but:
– For shareholders with a focus on Entra’s long-term value creation potential, and who place less emphasis on the shares’ future liquidity, the company’s ownership and corporate governance, the board believes that the offer is not sufficiently attractive for the board to recommend that the offer should be accepted. from the board(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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