Oslo Pensjonsforsikring acquires Hydro's Herøya Industripark

Norsk Hydro ASA has entered into an agreement with Oslo Pensjonsforsikring AS regarding the sale of Herøya Industripark AS. The transfer will likely occur during the first quarter of 2016.

"After a thorough process, and based on an overall assessment, we concluded that Oslo Pensjonsforsikring AS (OPF) would be the best new owner of Herøya Industripark. We see them as a long-term and very serious owner. Oslo Pensjonsforsikring already has a diverse portfolio of real estate, including industrial operations, and has broad experience in property management," says Executive Vice President Eivind Kallevik in Hydro.

Almost a year ago, Hydro announced the decision to offer the industrial park in Herøya for sale, a consequence of changes Hydro has undergone in recent years.

Hydro has developed from a conglomerate operating in several business sectors to a pure aluminium company with its own significant electric power production. The company no longer has any production facilities at Herøya.

A number of Norwegian and international stakeholders have considered buying Herøya Industripark, and negotiations with several bidders have been ongoing since June.

Oslo Pensjonsforsikring AS is a life insurance company wholly owned by the Municipality of Oslo. The company manages the pension plans in the municipality, including municipal corporations and corporations where Oslo is the majority owner.

"As a life insurance company and asset manager, OPF is interested in assets that provide good long-term returns. We believe Herøya Industripark is a good addition to our portfolio and look forward to taking part in the ownership and development of one of the core areas for the onshore processing industry in Norway," says Investment Director Kjetil Houg in OPF.

He says that OPF plans to further develop Herøya Industripark's philosophy as host organization in cooperation with the employees.

The transaction is expected to give Hydro a book gain of approximately NOK 350 million. The formal transfer will likely occur during the first quarter of 2016. OPF has received the necessary approvals from the Financial Supervisory Authority to complete the transaction, but it must also be formally approved by the competition authorities.

In addition to OPF, the property management company will collaborate with other owners having solid experience in real estate development and management of industrial and business parks in Norway. FG Eiendom is expected to assume a central role as partner of the property management company.

FG Eiendom is a real estate company that develops and manages commercial, residential and retail properties across the country. They have local roots in Kristiansund and are currently involved in Kristiansund, Vikan, Raufoss and Oslo Business Park.