Norwegian To Sell Norgani Hotels for $1.3B

OSLO, NORWAY-Oslo Properties, a 100% unit of the listed Norwegian Property, has entered into a preliminary agreement with Pandox, a joint venture of private firms Eiendomsspar and Sundt, with the aim of selling 100% of equity in its Norgani Hotels unit for $1.3 billion

The agreed price is about $95 million equivalent below a book value as of June 30, but NPRO CEO Olav Line said, “We are very satisfied with the price and the commercial terms of the transaction… A sale of our hotel real estate business is an important step in creating a more focused company with a stronger operational and financial platform for profitable growth. A sale now is definitely the right move for Norwegian Property, allowing us to swiftly and proactively re-align our balance sheet relative to the possibilities we see in the office real estate business.”