Recreate ASA — M&A Activity 2022

Apr 1, 2022

R8 Property makes transformative acquisition in Oslo

R8 Property makes transformative acquisition in Oslo

Porsgrunn, 1 April 2022 – R8 Property ASA ("R8 Property") has entered into an agreement with Skanska Commercial Development Norway ("Skanska") to acquire Parallell, a sustainable and modern office property located in Økern, Oslo. The 19,000 square meters and 15 storey building was completed in 2020. The transaction, which is expected to be completed in November 2022, is based on a gross property value of NOK 750 million, adjusted for increased rental income and represents a quantum leap for R8 Property in its growth journey.

Located in an area in development, Parallell is positioned next to the public transport hub, Økern, ten minutes away from Central Oslo by metro. The building is also easily accessible by car from Ring 3/E6 – one of Oslo’s main roads.

The building has been BREEAM certified and received an Excellent rating. Strict environmental requirements have been set for the building throughout its life cycle, including limited use of chemicals, recycling of materials and energy-efficient solutions.

The building has been developed with a focus on tenants' well-being and offers excellent lighting conditions, which supports a good working environment. As a result, the building has achieved a WELL Core Gold pre-certification by the WELL Building Standard, which means that the property scores high on building features that impact human health and well-being. These certifications are in line with R8 Property's focus on its environmental footprint, innovation and technology.

Today, seven of the 15 storeys have been leased by the flex space provider Evolve. In total 66% of the building is now leased.

"The acquisition of Parallell represents a quantum leap for R8 Property as we continue to work towards a property portfolio valued at NOK 5 billion. We were drawn to Parallell for several reasons. One of its strong points was its sustainable development and concept, which aligns with our vision to create a sustainable future," says Emil Eriksrød, CEO in R8 Property.

"We have a successful track record in leasing out properties in Oslo and nearby areas. This building is spot on market demand with its central location, flexible office solutions and attractive environmental features," says Emil Eriksrød.

Completion of the transaction is conditional upon financing. The company is considering making a private placement to finance the acquisition completely or in combination with debt financing.

CONTACTS

* Emil Eriksrød, CEO, + 47 415 22 463, emil@r8property.no

COMPANY IN BRIEF:

R8 Property ASA is a full-service real estate company focused on the development, ownership and management of centrally located and sustainable commercial properties.

The information is such that R8 Property ASA is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, 07:00 1 April 2022.