NSB property stock returns to own management

20 Oct 2005

The decision is based on a new strategy and business model in which management is defined as important for NSB’s core real estate business. As a result, NSB has decided that management, including administration and control of the property portfolio, will be carried out within NSB’s own organisation. NSB has therefore decided to take over the management of its property stock on expiry of its agreement with Aberdeen.

“We are very satisfied with the quality of service that Aberdeen currently provides, so the decision to take over the real estate management ourselves is entirely unconnected with Aberdeen’s performance,” says Pål Berger, Managing Director of NSB eiendom as/ROM eiendomsutvikling as.

Around 35 employees of Aberdeen who currently carry out work connected with the management of NSB’s properties will be offered employment in NSB’s real estate business with effect from 01.01.07.

Around 70 employees of Aberdeen who work on the operation and maintenance of NSB’s properties will be offered employment with the supplier given the operation and maintenance contract for NSB’s properties.

For its part, Aberdeen has decided not to bid for the operation and maintenance contract.
“We have no problem with NSB’s chosen strategy for its real estate business. We will manage the changeover with no reduction in profitability; for Aberdeen, this will in practice mean a clearer focus on investment assignments,” says Tore Bergum, Deputy Managing Director of Aberdeen Property Investors. “We will continue to deliver high quality real estate management to NSB so long as we have the contract, just as we do for all our contracts. It is also crucial for us that the employees are looked after as well as can be and we will help make the transition as smooth as possible.”

Contact persons:
Pål Berger, Managing Director, NSB Eiendom as/ ROM eiendomsutvikling as – telephone: +47 916 54 200
Nils Vangdal, Real Estate Director, NSB eiendom as – telephone: +47 916 51 188
Tore Bergum, Deputy Managing Director, Aberdeen Property Investors – telephone: +47 901 24 490
Espen Klevmark, Managing Director, Aberdeen Property Investors – telephone: +47 900 23 111

Background
• NSB spun off its real estate management on 1 October 2001, establishing a separate company together with Aberdeen Property Investors (formerly Celexa Eiendomsforvaltning AS). NSB and Aberdeen initially had shareholdings in the company of 35% and 65% respectively. Since 1 January 2004 Aberdeen has owned the company 100%.
• NSB has retained 100% ownership of the properties throughout.
• NSB’s property stock amounts to around 750,000 m².
• The measured return on the portfolio in 2004 was 12.1%.

For more information about the companies please visit:
www.romeiendomsutvikling.no
www.aberdeenpropertyinvestors.com

Aberdeen Property Investors—editors’ notes
Aberdeen Property Investors is an asset management corporation specializing in properties. Aberdeen has SEK 70 billion of AUM in property investments, and 500 employees.

Aberdeen Property Investors is a subsidiary of Aberdeen Asset Management, which is quoted on the London Stock Exchange, with operations encompassing equity and fixed-income asset management.

Aberdeen Property Investors is rated the best manager of property investments in the western European, Nordic and Baltic regions in Euromoney’s Awards for Excellence in Real Estate.