Norwegian consortium buys into Oslo development for €340m

A Norwegian consortium has acquired the office component of a mixed-use development scheme on the outskirts of Oslo, for NOK 3.2 bn (€340 mln).

The consortium, led by Norwegian investment bank Pareto Securities, is purchasing the shares in the Fornebuporten development held by Fornebuporten Holding, a subsidiary of Aker, an Oslo-listed offshore fishing, construction and engineering company.

Fornebu is a peninsular area in the suburban municipality of Bærum which lies on the western border of Oslo.

Development
Fornebuporten Holding is develops offices and residential housing projects in Oslo and Aberdeen. The company was established in 2011 with the acquisition of a 90,000 m2 development site at Fornebu for NOK 800 mln. Regulatory approval was obtained in 2012 for the construction of 100,000 m2 of office, retail and residential space at Fornebu in two phases.

The sales agreement comprises the office real estate development at Fornebuporten, of which two-thirds is completed. The project is scheduled for full completion in the second quarter of 2016 and is progressing according to plan.

The two office buildings at Fornebuporten have lease contract durations of around 12 years. Gross total rent for the office buildings, including annuity rent and parking space is NOK 180 mln per annum.

The transaction values the Fornebuporten offices at NOK 3.2 bn (€340 mln). Arctic Securities and Pangea Property Partners acted as financial advisers to Fornebuporten Holding.

The vendor has in turn taken a 25% stake in the buying consortium named Fornebu Gateway. The other shareholders are Joh. Johannson Handel (40%); Watrium (20%) and 15% is held by the Resource Group TRG, a company controlled by Aker's chairman and principal shareholder Kjell Inge Røkke.