Andfjord Salmon completes NOK400m harbour sale-and-leaseback deal

Norwegian land-based aquaculture firm Andfjord Salmon has completed the sale-and-leaseback of the harbour area at its Kvalnes facility on the island of Andøya, receiving NOK400 million ($38 million) in gross proceeds.

The harbour property has been sold to Asset Buyout Partners (ABP) and will be leased back to Andfjord Salmon on an 80-year contract. The lease has a 7.5 per cent yield, adjusted for inflation. The deal was first announced as a potential transaction on February 26.

Martin Rasmussen, Chief Executive Officer of Andfjord Salmon, stated that the transaction is an integral part of the financing package for the Kvalnes site, where construction work is ongoing. He added that salmon production is scheduled to re-commence in September of this year.

For ABP, its Chief Executive Officer William W. Wittusen described the facility as "mission critical" for its tenant and said the deal increases his company's presence in Northern Norway, which it views as a strategic region.