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Entra — M&A Activity 2021
Dec 3, 2021
3596_iss_2021-12-03_0b9c1b5b-6d56-46a0-abd9-ecd2d7453b83.pdf
M&A Activity
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Acquisition of Oslo Areal
Oslo, 3 December 2021
The transaction
Acquisition of 100 % of the shares in Oslo Areal from Gjensidige Forsikring and AMF Pensionsförsäkring
Oslo Areal owns 17 properties in Oslo and Sandvika with gross lettable area of 222,000 sqm
Purchase price: Total enterprise value of approx. NOK 13.55bn
Fully financed through existing and new debt facilities
Subject to customary clearance by the Norwegian Competition Authority
Expected closing medio January 2022
Strategic rationale
I
Oslo Areal is a "mini Entra"
High quality office portfolio centrally located on public transportation hubs in Oslo and Sandvika
II
III
A unique opportunity to increase the Oslo portfolio through one large transaction 222,000 sqm office portfolio located in Entra's clusters in central Oslo, Skøyen, Helsfyr and Sandvika
An attractive project portfolio enhancing Entra's strong project pipeline Up to 140,000 sqm development potential added to Entra's development pipeline in Oslo
IV
Enables optimal utilisation of Entra's balance sheet capacity
Utilising robust balance sheet to add profitable growth and increased shareholder value
Positive market outlook for commercial real estate
Expected solid market rental growth in Oslo
Oslo Areal: Key figures
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Oslo Areal: Property portfolio
BREEAM certified
Oslo Areal: Oslo portfolio
1) Only existing building area. Does not include project area.
Oslo Areal: Sandvika portfolio
1) Only existing building area. Does not include project area.
Near term development potential; selected examples
Christian Krohgs gate 10-12
- Redevelopment project
- 5,450 sqm
- Timing: 2021-2022
Christian Krohgs gate 2
- Redevelopment + infill project
- 12,000 sqm existing + 8,000 new
- Estimated timing: 2023-2025
Grensesvingen 7
- Newbuild project
- ~8,000 sqm
- Estimated timing: 2023-2025
Long term development potential
1) Oslo Areal's share of the development
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Combined figures: Entra and Oslo Areal
KEY FIGURES – ENTRA1
| Gross lettable area (sqm) | 1,213,015 |
|---|---|
| Gross project area (sqm) | 300 000 – 350 000 |
| 12m rolling rent (NOKm) | 2,709 |
| WAULT (years) | 6.9 |
| Public sector, share of rent (%) | 58 % |
| Greater Oslo, share of rent (%) | 68 % |
KEY FIGURES2
| Gross lettable area (sqm) | 222,331 |
|---|---|
| Gross project area (sqm) | 95,000 – 140,000 |
| 12m rolling rent (NOKm) | 464 |
| WAULT (years) | 4.7 |
| Public sector, share of rent (%) | 32 % |
| Greater Oslo, share of rent (%) | 100 % |
KEY FIGURES
| Gross lettable area (sqm) | 1,435,346 |
|---|---|
| Gross project area (sqm) | 395,000 – 490,000 |
| 12m rolling rent (NOKm) | 3,173 |
| WAULT (years) | 6.6 |
| Public sector, share of rent (%) | 54 % |
| Greater Oslo, share of rent (%) | 73 % |
Closing remarks
• Strengthening Entra's #1 position as the largest office provider in Oslo
- − Increased presence in our most important clusters
- − Providing further flexibility and increased attractiveness for our customers
- Adding substantial development potential
- − Particularly in the most attractive transformation area around the Central Station in Oslo
- Favorable market fundamentals, expecting solid market rental growth in Oslo
- Utilizing Entra's strong balance sheet
- − Obtaining the most attractive financing terms in the Norwegian market
- − Accretive on earnings multiples (CEPS)
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