Munich-based AM alpha has sold two office-retail assets in Oslo to a Norwegian private investor for NOK 320 mln (€34 mln).
The two properties with predominantly office use are well located in Kvadraturen, a micro location in the heart of Oslo's historic centre, situated between Oslo Fjord, Oslo Central Station and the central business districts of Aker Brygge and Bjørvika. The Opera House and Oslo's key commercial street of Karl Johans gate are all in immediate walking distance.
Originally built for the Norwegian Central Bank at the beginning of the last century, Tollbugata 18-20 is a single-tenant office property with a historical sandstone façade and a lettable area of approx. 3,780 m2. The multi-let asset at Kirkegata 5, next to the Central Bank's present headquarter, is a classic heritage building with office and retail uses spread over a lettable area of 3,350 m2. Both properties feature prominent corner locations and have undergon modernisation in the past years to provide tenants with up-to-date office space.
The off-market portfolio share deal was signed in December 2015 and closed in April 2016.
Siegmut Böhm, managing director at AM alpha Munich, said that while Oslo was still an attractive investment location, AM alptha felt it reached an 'opportune exit point' for these specific properties. He added: 'At acquisition in the year 2011, our investment strategy was based on two assumptions: firstly, we envisioned the Norwegian economic growth would support the recovery in the Oslo office market which had already bottomed out, leaving room for further yield compression. Secondly, AM alpha firmly believed in the positive development of the then up-and-coming office sub-market of Kvadraturen, which was poised to establish itself as an inner city office location between the two traditional CBD districts of Aker Brygge and Bjørvika. Today it is clear we had the right market instinct. We decided to unlock the value for our investors and divest the assets.'
AM alpha is a real estate investment firm servicing private clients.