TONO has purchased the property Kongens Gate 12

The agreement to purchase Kongens gate was entered into on November 15th following a decision by TONO's board on November 13th. The investment is a significant milestone in TONO's 95-year history.

– We have big visions for the building, which will become a “House of Music”. We will build state-of-the-art studios with a great visitor area for TONO members that will be free to use. We will also build stage and event spaces, in addition to offices for TONO employees. We are also inviting other businesses in the music industry to join in line with the vision of “House of Music”, and are already in talks with several players about this. The building signals that we are a TONO for the future, and we are looking forward to this next chapter in our history, says CEO of TONO, Karl Vestli.

Hub in music-Norway

TONO's chairman of the board, Jørgen Karlstrøm, says that in addition to this year's annual meeting resolution that TONO can invest in real estate, a visionary and united board is behind the decision to invest in real estate.

– TONO's board has been working with the administration for a long time on the idea of ​​investing in property and realizing a gathering place for members. We are working to ensure that the TONO house in Kongens gate will become a hub in music Norway. The goal is to bring together a number of music organizations and companies under one roof, while at the same time opening the doors to TONO's members. Here, new music and new song lyrics will be created, there will be courses, events and seminars, says Jørgen Karlstrøm.

Long history of owning your own premises
In other words, after renting premises at Møllergata 4 for two years, TONO is now returning to investing in its own premises.

– Investing in real estate is nothing new for TONO. We believe this is a good time to invest, which normally yields good returns. We sold our office premises in Greenland in 2019 after owning it for more than thirty years. This resulted in a gain of almost NOK 60 million, says Vestli.

The profit from the sale of Tøyenbekken 21 is now being invested in Kongens gate, including for the construction of studio facilities for TONO members. This is in line with the 2022 annual meeting resolution, which states that the funds shall be used for cultural purposes in the broadest sense, where studio facilities for TONO members are specifically mentioned. The purchase is also in line with TONO's investment strategy, which was adopted by the 2023 annual meeting. It states that TONO shall invest its liquid funds with low risk, but at the same time "seek to achieve the best possible return on the funds". Property is specifically mentioned. TONO will take over the building with existing tenants on December 1, and envisages a period of 12-18 months before the upgrade and renovation are completed and the plans are fully realized.

The building TONO is purchasing from Malling & Co Vekst consists of 6 floors spread over a gross area of ​​3,363 square meters. Prior to the purchase, TONO has conducted a thorough due diligence process to ensure a thorough decision-making basis. The purchase is financed by TONO's own funds, as well as the gain from the sale of Tøyenbekken 21 in 2019. TONO's advisors in the transaction were Realnor, Wikborg Rein and BER, while Malling was represented by Thommessen.

About TONO
TONO was founded in 1928 and is a non-profit cooperative owned and managed by composers, lyricists and music publishers, and which manages the economic copyrights in their musical works. TONO grants permission for the use of protected music on radio, TV, the internet, concerts, cinema, etc. for a fee, and transfers its financial results each year to the rights holders of music that has been performed publicly. TONO has more than 40,000 members, but also works for millions of authors and music publishers from around the world. TONO gives music creators an economic basis to create new music, and collects and simplifies the licensing of protected music to music users. TONO had a turnover of NOK 864,6 million in 2022.

For more information:
Willy Martinsen, Communications Director at TONO, Willy.martinsen@tono.no, tel. +47 909 65 254
Mads Mortensen, Managing Partner – Malling & Co Investment Management AS, mads@malling.no, phone + 47 922 90 666