NORWAY - Akershus Fylkeskommunale Pensjonskasse (AFKP), a local authority pension fund for the employees of the municipality adjacent to the north and west of Oslo, has acquired a newly-developed office building in Drammen.

The property was sold by Norwegian developer Union Eiendomsutvikling, which completed the property in January, for NOK356m (€44.1m), and the deal reflects a yield of 6.2%.

Trond Åsheim at Union Eiendomsutvikling said pension funds were the main buying group for such assets in Norway.

The building is let to Norwegian labour and welfare organisation NAV on a 15-year lease.

It includes seven floors of offices and an underground car park spread over 11,000 square metres.

The area in which the building is located is a former paper mill site, which closed in 1994.

A redevelopment of Drammen's new town centre since then has seen the rise of new office, retail, housing and hotel buildings in the area.

AFKP was advised by DTZ RealKapital on the acquisition.