Asset Buyout Partners Annual Report 2020

The Board of Directors’ report 2020 Operations and locations Asset Buyout Partners (“ABP”, “the Company” or “the Group”) is an industrial real estate company with a dedicated investment strategy aimed towards real estate and infrastructure assets located in Norwegian energy and maritime clusters. Mission critical infrastruc- ture characteristics provide comfort for cash flows well beyond contracted lifetime – underpinned by attractiveness and longevity of the Norwegian energy industry, maritime industries such as aqua- culture and seabed mining, and alternative energy industries such as hydrogen production, battery cell production and offshore wind. The Norwegian Economic Zone is a highly attractive region in this regard, due to a combination of access to high quality infrastructure, a stable regulatory environment and vast natural resources. The Company is owned by HitecVision, a leading provider of institutional capital to the North Sea region’s energy industry, ABP management, and non-executive board members. ABP owns a diversified portfolio of mission critical assets strategically located in key energy and maritime clusters. As of 31 December 2020, the Company owned and managed nearly 100 properties, 1.7 million square meters of land and infrastructure including piping for bulk supply, 245,000 square meters of primarily industrial facilities and 750 meters of quays. In addition, ABP has a combined 520,000 square meters of zoned, undeveloped land that provides expansion opportunities for existing as well as new customers. ABP plans to grow the Company in scale over the coming years based on both organic and inorganic growth opportunities. ABP will leverage the Company’s strategic position, scale, portfolio composition and system value to continue to build value for our customers and shareholders. The Company has 15 full time employees with sector-specific exper- tise and relationships with leading companies in the Norwegian energy and maritime industry. ABP is a professional landlord and seeks long-term partnerships with our customers. The Company’s expertise extends to structuring, owning, developing, financing and managing real estate and infrastructure. ABP is headquartered centrally in Oslo with regional asset management teams serving customers locally. 2020 in brief After a positive start to 2020, significant global events created a volatile market environment, both for the general economy and for the oil and gas industry. Covid-19 was declared a global pandemic by the World Health Organization and forced countries and organizations to take measures to mitigate risks for communities, employees and business operations. The Covid-19 pandemic adversely impacted the global economy, and as a response to this central banks has cut interest rates globally, and in May 2020 Norges Bank for the first time reduced the policy rate to zero percent. Throughout 2020 numerous stimulus packages has been introduced to support global economy, and in June 2020, the Norwegian government implemented a temporary tax incentive scheme that has maintained activity in the oil and gas industry and the supply industry during the Covid-19 pandemic. In response to the Covid-19 pandemic ABP’s tenants implemented measures to ensure the health and safety of employees and to reduce operational disruption to a minimum. In addition, tenants completed targeted cost reductions and temporarily postponed investment decision for capital expendi¬tures. However, the Company had no direct impact from Covid-19, as all the Company’s tenants have proven capable of adapting to the market volatility, maintaining activity levels, and have fulfilled all lease payment obligations to ABP throughout the year. The Group has optimized its company structure by the merger of several holding companies resulting in a leaner and simplified structure in addition to reduced running costs. Asset Buyout Partners | Annual Report 2020 10