Sale of property.

In connection with further actions to improve results in Aftenposten, an evaluation of the premises of Aftenposten has been made.  It has been decided today that Aftenposten and its subsidiaries will move to “Postgirobygget” by entering into a long term rental agreement with Entra Eiendom.

 

Simultaneously, an agreement with Entra Eiendom concerning the sale of Akersgt. 32-34-36 and Akersgt. 51 as of 31 December 2002 has been made with a total sales value of NOK 370 million. Entra Eiendom also takes over Schibsted Drift with approx 30 employees at book value.  In addition, Entra Eiendom will take over the premises which have been at Aftenposten’s disposal (approx. 8,000 sq.m.) in Akersgt. 55 (the VG house) on a long term rental agreement.

 

The agreement implies that the Schibsted Group will free up capital currently tied up in the properties that will now be sold, and the sale of the properties will give a profit of approx. NOK 70-80 million. As a consequence of the sale of properties and new rental agreements a yearly improvement in profit before taxes of approx. NOK 30 million is expected for the Schibsted Group with effect from the time of the relocation. The rental costs for Aftenposten will be reduced by approx. NOK 25 million per year as a result of this.  Aftenposten’s improved result implies a similar decline in the rental income of Schibsted Eiendom and the effect for the Schibsted Group will mainly be improved net financial items.