Norwegian listed company Entra has acquired the entirety of the shares in Oslo Areal for approximately NOK 13.55 bn (€1.31 bn), in what is said to be the largest real estate transaction in Norway ever.
Oslo Areal is an owner and developer of office properties in and around Oslo. The company owns 17 office properties of which 15 are centrally located in Oslo and two in Sandvika just outside Oslo. The property portfolio totals 222,000 m2 of gross lettable area and includes up to around 140,000 m2 of development potential. The office portfolio is currently 94.4 % let with a WAULT of 4.7 years and an annual rent of NOK 464 mln. The company has 14 employees.
The shares were bought from vendors, insurer Gjensidige Forsikring ASA and pension fund AMF Pensionsförsäkring AB.
Pangea Property Partners has acted as financial and transaction advisor to Entra.
‘Oslo Areal is a perfect strategic fit for Entra, both in terms of portfolio location and its significant inherent development potential. This transaction enables additional profitable growth and increased shareholder values in Entra going forward by utilizing our strong balance sheet,’ says Siri Hatlen, Entra’s board chairman.
‘Oslo Areal holds an attractive office portfolio with a project pipeline which is complimentary to Entra's existing portfolio. We see Oslo Areal as a smaller version of Entra and the company will significantly strengthen Entra's market position in Oslo. The transaction will create shareholder and tenant values far beyond regular single-asset transactions,’ added Entra’s CEO Sonja Horn.
The transaction is expected to close in mid January 2022.
