Close Investments acquires EUR 85m mixed portfolio in Norway

London-listed Close Investments has acquired an office and industrial portfolio of 15 properties in Norway to add to its European Property Investment Portfolio (Europip). The Europip fund invests in direct property and select open and closed-end property funds in Continental Europe and Scandinavia. Property advisor King Sturge acted on behalf of Close Investments in the acquisition from Kenmore European Industrial Fund (KEIF). Jones Lang LaSalle and Akershus Eiendom advised KEIF.

Martin Towns, Close Investments Property, said: 'Norway has a fast growing economy and rental growth looks set to outperform the remainder of Europe. In addition, this portfolio offers considerable scope for active asset management. We invested at an attractive initial yield of around 7.5%, with a longer average lease length of around 7 years remaining, compared to a UK average of around 5 years'.

'In addition to this purchase, we continue to seek investment opportunities throughout the region. This portfolio gives immense momentum to our European investment strategy and demonstrates that it is possible to seek out assets that should deliver excellent returns in the future.'

Close Investments is a subsidiary of Close Brothers Group, an independent investment banking group which was founded in the City of London in 1878. It is listed on London Stock Exchange and offers a range of products for institutional, mutual funds and private investors including property, tax mitigation products, manager of managers, specialist fund management. The group employs over 2,500 staff and in July 2007 managed assets of £9.1 bn (equivalent to about EUR 12 bn).

Penny Hacking of King Sturge added: 'Supply in the office and industrial sectors of the Norwegian market is limited and the portfolio is reaping immediate returns for Europip. This transaction is expected to be the largest in Norway for 2008 and it highlights our client's belief in the Norwegian property market.'