Hurtigruten Group completes the divestment of its real-estate portfolio on Svalbard
Reference is made to the announcement on 29 March 2021 when Hurtigruten Group announced an agreement with Store Norske Spitsbergen Kullkompani AS ("Store Norske") to sell its real-estate portfolio on Svalbard. Conditions to complete the divestment have now been fulfilled and the transaction is closed.
Financial impact of the divestment
The divested real-estate portfolio comprises c. 18 000 square meters, including three hotels, office facilities, 40 apartments and two large retail premises. The total value of the transaction is NOK 690 million of which NOK 105 million is dependent on Hurtigruten Svalbard's sales performance.
The net liquidity effect at closing amounted to approx. EUR 46 million.
As part of closing the transaction, Hurtigruten Svalbard has entered into a 30-year operating lease agreement for the real-estate portfolio. The operating lease agreement substantiates Hurtigruten Group's long-term strategic commitment to a land-based Svalbard operation, and Hurtigruten Group will continue to develop Svalbard as a marquee destination for adventure travel in the Arctic.
For further information, please contact:
Torleif Ernstsen, Chief Financial Officer, tel. +47 920 49 599, [email protected]