Aberdeen Property Investors (API) said that its Property Nordic Fund I has acquired a fully-let office development in the Norwegian oil town of Stavanger for around EUR 16 mln. The office project will provide a gross lettable area of 6,500 m[sup]2[/sup] and 150 parking spaces on completion.
Aberdeen Property Investors (API) said that its Property Nordic Fund I has acquired a fully-let office development in the Norwegian oil town of Stavanger for around EUR 16 mln. The office project will provide a gross lettable area of 6,500 m2 and 150 parking spaces on completion.
The entire building, located in the Forus Business Park, has been let to a single tenant for a ten-year term. The project is due for completion in the first semester of 2010. Aberdeen Property Nordic Fund I for institutional investors has a targeted volume of roughly EUR 420 mln, half of which represents investor equity. 'With this investment, we have managed to increase the high level of diversification of our Nordic Fund I even further,' said Alexander Tannenbaum, managing director of API Deutschland and in charge of the fund's investor relations in Germany.
The fund now has a broad-based Nordic portfolio of 12 properties and more than 130 tenants. At the moment, it generates a cash-flow return on investment of over 5%, according to Tannenbaum. 'In the long-term, the total return could actually be much higher. The economy and the property markets in the Nordic region present a robust picture compared to the EU average,' he added.
