New York-based investor Madison International Realty has completed the sale of the Statoil office complex in Oslo to a club of local investors, established by Norwegian investment bank, Arctic Securities, for NOK 3.9 bn (€420 mln), representing a 5.4% cap rate.
As part of the deal, one of the largest transactions in the Norwegian market this year, Arctic Securities will also assume the existing NOK 2.24 bn bond.
The 65,768 m2 nine-storey asset in the Fornebu submarket of Oslo was constructed for, and is let in its entirety to energy and gas production company Statoil through 2027.
Madison invested as little as €140 mln of equity to acquire the complex in two separate deals in 2014 and in 2012. It bought an initial 35% equity stake in 2012 for €53 mln while in September 2014 it purchased a further 59.5% stake for €85 mln in cash, taking it total stake in the building to nearly 95%.
Arctic Securities also arranged the syndicate of investors including Madison which bought the asset in 2012 for a total of €430 mln.
The 65,768 m2, nine-story building in Fornebu, west Oslo, is let to Statoil on a 15 year lease.
Derek Jacobson, managing director at Madison International Realty, said: 'We believe the success of our investment validates our strategy of buying interests in quality assets and portfolios. We remain focused on Norway and look forward to future opportunities in the market.'
Mads Syversen, CEO at Arctic Securities, added: 'Arctic established the entire capital structure of the transaction – equity, preference shares and a junior bond – and we are excited to follow this project going forward together with our investors.'
The seller was advised by Akershus Eiendom and JLL.
