STAVANGER, Norway—W.P. Carey Inc., a global net lease REIT specializing in corporate sale-leaseback, build-to-suit financing and the acquisition of single-tenant net lease properties, has acquired the headquarters of Total E&P Norge AS (Total Norway) in Stavanger, for approximately $114 million (NOK 716 million) after tax adjustments and transaction costs. The seller was Norwegian real estate investment company and developer, Norwegian Property ASA (NPRO).
· Strong credit tenant: 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. In 2013, Total Norway generated revenues of $7.5 billion (NOK 45 billion) and net income of $1.1 billion (NOK 6.8 billion). Total SA is rated AA-/Stable (Standard & Poor’s).
· Critical asset: 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.
· Strategic location: Stavanger is considered the oil capital of Europe and the center for North Sea oil exploration. The facility is strategically located adjacent to the established Dusavik supply port, the first and one of only two supply ports in Stavanger catering to the North Sea oil fields.
· Strong market: An estimated 56% of Norway’s oil and gas reserves remain on the Norwegian Continental Shelf; as such, the petroleum industry will be a core part of Norway’s economy for the foreseeable future. Norway is rated Aaa (Moody’s) and AAA (Standard & Poor’s) and maintains one of the world’s largest sovereign wealth funds totaling approximately $1 trillion (NOK 6.3 trillion).
“The acquisition of Total Norway’s headquarters marks our second high profile transaction in Norway this year, following CPA:18 — Global’s purchase of Siemens’ new Norwegian headquarters in Oslo,” said Arvi Luoma, director of W. P. Carey. “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. The importance of the oil and gas industry to Norway, in conjunction with Total SA’s position as an oil supermajor and a highly rated creditor, further enhances the strength of this addition to W. P. Carey’s global net lease portfolio. Additionally, we were pleased to be able to provide liquidity to NPRO, enabling them to execute on other investment and development opportunities.”
Olav Line, CEO of NPRO, added: “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.”