The Arctic actual property affected by the disaster is being bought | DN

International Courant

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In current weeks, actual property company Arctic Securities has been working tirelessly to discover a answer for the crisis-hit Telegraaf actual property venture, the place a excessive debt burden mixed with increased rates of interest has broken shareholder values.

Earlier this week it grew to become clear that shareholders can be given a selection between elevating capital and promoting the property, as Arctic had each secured capital from shareholders and obtained a suggestion.

The conclusion got here on Friday night: the shareholders have accepted the provide and the property will due to this fact be bought.

On the coronary heart of the disaster is a NOK 1.6 billion bond, which matures in two months. The mortgage couldn’t be refinanced after the brutal rate of interest improve, which created an incredible want for fairness.

The Telegraph

Opened in 1924 because the headquarters of the Telegrafverket, the predecessor of Telenor, it was the third largest constructing within the nation when accomplished. It was additionally by far essentially the most extravagant of the time, protecting a whole neighborhood in Kvadraturen in central Oslo. Designed by Arnstein Arneberg and Magnus Poulsson, the constructing was owned by Telenor for a very long time. In 2016 it was bought for 560 million and later reopened as an workplace constructing and mini meals corridor on the bottom flooring, with 2,700 sq. meters for eating places, bars and cafes. In December 2020, the constructing was bought to a syndicate. from brokerage agency Arctic Securities. The transaction priced the property at 2.25 billion.

Was lined

Throughout the capital improve, which has now come to nothing, it grew to become clear on Tuesday this week that Arctic was lined, after the quantity was lowered from 580 to 520 million. The discount is partly resulting from a discount in compensation by NOK 29 million. Arctic confirms to DN that the true property company will obtain a compensation of roughly 16 million for the sale, which corresponds to at least one % of the gross residence worth. It is about the identical quantity the payment was lowered to when the problem was underwritten earlier this week.

Earlier that day there was information a few bid for high firm Telegraaf Make investments, a suggestion that has now been accepted. The bid value the fairness NOK 100 million, which is 86 % decrease than the contributed fairness of NOK 726 million.

It’s not recognized who made the bid.

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The provide amounted to NOK 10,000 per share, whereas the capital improve would happen at a price of NOK 2,000 per share.

DN wrote earlier this week that the property, taken by itself, prices simply over NOK 1.6 billion, equal to a drop in worth of virtually 28 % in comparison with the quantity the syndicate purchased it for.

Arctic co-owner Trond Mohn and his basis are the biggest house owners of Telegraaf, with 25 % of the shares. The opposite shareholders – there are simply over 150 – every personal lower than 5 %.

Write all the way down to zero

The second largest shareholder is Kåre Jostein Grøtta, who stated he purchased extra shares than deliberate due to a slipshod arithmetic error he made after “a number of further steps”.

Barely additional down the record of shareholders is takeover chief Birger Nergaard, who owns 0.7 % of the shares. Because of this he could have invested a number of million kroner, however Nergaard has already written down the worth of the shares to zero.

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– It was virtually inconceivable to get out once I noticed this coming within the spring. There have been no consumers, all black.

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Present all positions

In August, Telegraaf violated the share protection requirement. The bondholder ordered the breach to be remedied on October 23.

If the breach was not remedied inside this era, the bondholder may demand quick compensation of the mortgage or assume the mortgage. Based on DN’s expertise, there was a constructive dialogue between the bondholder and Arctic this week.

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The Arctic actual property affected by the disaster is being bought | DN

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