Real estate private equity firm Madison International Realty and Carucel Eiendom, a Norwegian real estate developer, have joined forces to create a new residential platform that will focus on the Oslo rental market.

Madison and Carucel said Oslo’s residential market had “attractive long-term prospects” and cited opportunities to address a supply-demand imbalance by developing high-quality, professionally-managed homes. 

The platform, Carucel Living, has been seeded with a portfolio of 21 properties, and Madison has acquired close to a 30% stake through an initial equity investment.

Madison has also committed to invest further capital to expand Carucel Living over time. The initial transaction is scheduled to complete in October.

Madison did not disclose the value of its investment, but it is understood to be close to €75m.

Carucel Living will target three residential sub-sectors – build-to-rent, co-living and serviced apartments – and will develop and operate assets using in-house capabilities and through strategic partnerships.

Craig Mason, vice president of investments at Madison International Realty, said: “We believe Norway is a highly attractive investment market with a residential sector that is underpinned by significant tailwinds, while its fragmented nature presents a compelling opportunity to consolidate a portfolio of quality assets – with a view to capturing a leading market position. More broadly, we think the relative stability of the European residential market looks attractive against an uncertain macroeconomic backdrop.”

Madison and Carucel are already working together on Norway’s largest urban development project at Oslo Bay, comprising 38,000sqm of assets in Bjørvika, in the centre of Oslo, which Madison and Carucel acquired in 2019.

“We have experience in the Nordics and have previously worked with Carucel on projects in Oslo, so we think they are an excellent operating partner with deep local expertise,” said Mason. “We look forward to working together with them to scale up Carucel Living over the coming years.”

Carl Erik Krefting, CEO of Carucel Eiendom, said: “We are very pleased to continue our cross-border relationship with Madison. This is the third time we have had the pleasure of working with them to invest in and develop prime Norwegian real estate, utilising Madison’s professional and experienced team whose support enables us to continue our expansion in the residential sector.”

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