Thursday, 7 August 2014
W. P. Carey Inc. completes NOK 716 million acquisition of Total's Norwegian Headquarters (NO)
W. P. Carey Inc., a global net lease REIT specialising in corporate sale-leaseback, build-to-suit financing and the acquisition of single-tenant net lease properties, announced today that it has acquired the headquarters of Total E&P Norge AS (Total Norway) in Stavanger, Norway, for approximately NOK 716 million (€85 million) after tax adjustments and transaction costs. The seller was Norwegian Real Estate Investment Company and Developer, Norwegian Property ASA (NPRO).
Total Norway is the wholly-owned Norwegian operating subsidiary of French oil and gas supermajor Total SA. The company is involved in the exploration and production of oil and gas on the Norwegian Continental Shelf and contributes approximately 10% of Total Group's global oil and gas production.
Total Norway has been headquartered at this facility since its construction in 1975 and has completed several refurbishment initiatives and expansions of the property throughout the years. Total Norway has shown its ongoing commitment to the facility by signing a 17-year lease extension upon completion of its most recent expansion in June 2014.tavanger,
Arvi Luoma, Director of W. P. Carey, commented:"The acquisition of Total Norway's headquarters marks our second high profile transaction in Norway this year, following the purchase of CPA®:18 -- Global's Siemens' new Norwegian headquarters in Oslo."
"In line with our investment strategy, we have acquired a mission critical asset with a long-term commitment from Total Norway, underscored by Total Norway's significant contribution to the Total Group's global oil and gas production.”
Olav Line, Chief Executive Officer of NPRO, noted: "We are delighted to complete this transaction with W. P. Carey. Asset rotation is a key part of our strategy and the sale of this significant asset provides us capital that we can redeploy in other opportunities. W. P. Carey's financial strength, global expertise and their ability to work with us in Norway as well as their recognition of the value of the long-term lease with Total Norway made them an ideal counterparty in this transaction."