Citycon has bought an office in Bergen, Norway for NOK 710 mln (€78 mln) from Tryg Forsikring.
The 19,000 m2 building is located next to Citycon’s Oasen shopping centre in the Fyllingsdalen area. The seller, Tryg, the second largest non-life insurance company in the Nordics, is the anchor tenant with its Norwegian headquarters located in the office building. The deal is expected to close in January 2017.
Citycon said that the acquisition created new opportunities to develop and expand the Oasen shopping centre from its current 31,500 m2. Citycon’s plans include adding approximately 11,000 m2 of leasable area by converting the main part of the two lowest floors of the office building into retail space as well as constructing a new part that further connects the two buildings, making space for a further anchor. Tryg will remain as an anchor tenant with a ten-year lease plus an extension possibility.
'Oasen fits perfectly with Citycon’s strategy to invest in urban shopping centres driven by daily needs and situated in locations with strong demographics. After acquiring the remaining 31% minority shares in Oasen in November last year, this acquisition is the logical next step to enable further development of the shopping centre towards creating another flagship within our Norwegian portfolio,' commented Marcel Kokkeel, CEO at Citycon.
'Oasen is in the heart of the city’s new urban planning and we aim to make Oasen the town square and transportational hub for residents in the area. We clearly note Oasen’s attractiveness and that there is a great deal of interest in establishing shops and concepts. The previous (re)development and extension in 2014 was successful and tenant sales in Oasen have increased by 25% since 2012,' added André Gaden, commercial director at Citycon.
The planned development work is expected to start in 2019, after the finalisation of a zoning process.
Pangea Property Partners acted as Citycon’s advisor in the acquisition.
