The Aberdeen Standard Norway Balanced Property Fund has acquired a mixed-use asset in Oslo, Finland from Promenaden High Street, a platform company of pan-European private equity real estate investment manager Mark.
Financial details were not disclosed.
Akersgata 16 in Oslo city centre is a 4,829 m2 property which is let to a mix of office and retail tenants. Promenaden undertook work to modernise the building, resulting in significant leasing activity, according to the vendor.
Current occupiers include coffee shop chain Kaffebrenneriet and furniture store Vitra Scandinavia on the ground floor, and energy and fiberoptic infrastructure supplier HCA Melbye, which recently moved into the top floor space. There are 12 tenants in total.
Lise Berge Brattvåg, fund manager at Aberdeen Standard Investments said: 'We look forward to taking over a very attractive property in the heart of Oslo, located just by the parliament.
'With the upgrade of Wessels Plass and Prinsens gate, as well as the interior upgrades, this is a property that will be in demand by both retail and office users for many years.
'An important strategy for the fund has been to invest in centrally located, high quality properties, and we believe this will be a good contribution to a rapidly growing portfolio.'
Akersgata is home to the Norwegian parliament and the Regjeringskvartalet complex, which hosts several government departments. The property is also located next to the newly renovated Wessels Plass public square, one of Oslo’s main attractions and a key driver footfall to the area.
Jens-Petter Guthus, head of transactions, Nordic region at Aberdeen Standard Investments added: 'The property has undergone significant upgrades and re-letting in recent year and in combination with the central location, Akersgata 16 is well positioned to meet future demands.
'We have several funds and mandates that plan to increase their exposure in Oslo, and will thus be active on the buyer side going forward.'
Aberdeen Standard Norway Balanced Property Fund currently owns nine properties valued at approximately NOK 1.5 bn (143 mln).
Promenaden is one of several platforms launched by Mark to focus on specific opportunities within target sectors or geographies. Established in 2016, the company manages an €850 mln portfolio of prime retail and commercial properties in central Oslo, including the historic Steen og Strøm department store.
Mark Gamble, senior managing director and head of asset management at Mark said: 'The disposal of Akersgata 16 marks a continuation of our strategy of consolidating the Promanaden portfolio through the sale of non-strategic assets, and underlines investor appetite for high quality properties that have benefited from proactive asset management.
'Prior to this transaction we had undertaken significant refurbishment works to enhance the building’s value, which in turn supported our leasing strategy.'
Akershus Eiendom was the broker in the transaction.
