A fund and clients advised by Meyer Bergman have agreed to purchase a portfolio of 11 prime properties in central Oslo’s principal shopping district for NOK 5.3 bn (€554 mln).
A fund and clients advised by Meyer Bergman have agreed to purchase a portfolio of 11 prime properties in central Oslo’s principal shopping district for NOK 5.3 bn (€554 mln).
The Norwegian company selling the assets is 65% owned by privately held Norwegian real estate company Søylen Eiendom and the balance by US investor Madison International Realty.
The portfolio's properties are concentrated on or around Karl Johans Gate, the prime shopping street of the Norwegian capital, and include the Steen & Strøm and Eger Karl Johan department stores. Tenants include Hermes, Gucci, Bottega Veneta, and Georg Jensen.
'This is a signature high street investment for us,' said Markus Meijer, Chief Executive Officer of Meyer Bergman. 'The luxury retail offer in Oslo is still quite limited for a city with such a wealthy and growing population, which is why we see plenty of scope to add value to these assets for our investors.'
Carl Erik Krefting, chairman and founding partner of Søylen Eiendom, added: 'For six years we have worked hard to develop a prime high street shopping location in downtown Oslo. It is now well established and has attracted some of the world's top brands, with many more wanting to open stores there. We will remain involved in the management of the business.'
Madison teamed up with Søylen Eiendom in late 2013 to create a new 30/70 joint company, Promenaden Property, which took control of nine properties in Oslo’s premier shopping district. The properties were valued at NOK 3 bn (€370 mln).
In 2014 the US private equity firm also acquired Schage's 50% stake in High Street Shopping, the owner of €180 mln worth of retail assets including Norway’s oldest department store. The other 50% owner of HSS was Promenaden Property, in which Madison already held a stake.
HSS was founded in 2011 with the acquisition of the 92,000 m2 Steen & Strøm Magasin at Kongens gate 23, 27 and 29 in Oslo, as well as the neighbouring Karl Johans gate 16 property, for more than NOK 1 bn (€120 mln). Søylen and its investment partner Schage Eiendom bought the asset at the time for over NOK 1 bn.
'The sale of the Promenaden Property portfolio just two years after we acquired our interest in it has generated excellent returns for our investors, validating the view we took ahead of many other international investors on the opportunities arising in Norway,' commented Derek Jacobson, managing director for European Investment at Madison International.
Madison is a private equity firm founded in 1996 which specialises in the ownership of interests or fractions of buildings with a core investment profile in major cities.