Norwegian Property has agreed with Total E&P Norway AS to extend the existing lease contract for Finnestadveien 44 in Stavanger until 31-12-2021. The lease contract includes total office space of 22,032 m², and the agreed annual rent is in excess of NOK 30 million (approx. 3.7 mln.), valid as from 1st of January 2010. The annual rent is adjusted annually by 2.5%.
The extension is agreed based upon "as-is" terms, i.e. no investment obligations for the lessor.
COO Aili Klami says in a comment: "We are pleased to confirm that Norwegian Property has entered into an agreement to extend the existing lease contract for Finnestadveien in Stavanger. The agreement is entered into at very satisfactory terms with a solid, high-quality tenant. With a duration of eleven years the agreement gives increased visibility of Norwegian Property's lease maturity profile and cash flow. Norwegian Property has today a vacancy of 2% in the office portfolio, which is far below current market levels".