Norwegian property developer Bane NOR Eiendom has sold a new office building in Drammen, a city near Oslo, for the record price of NOK 740 mln (€68 mln).
The price paid by a syndicate organised by Norwegian bank DNB is the highest ever paid in the city for a single office building and equates to a yield of approximately 4.5%.
Drammen is about 35 km south west of downtown Oslo and the building is the first new project to be developed in an area earmarked for expansion, on the waterfront next to the station.
Drammen station is one of Norway’s busiest transportation hubs.
Constructed to a very high sustainability and BREEAM-NOR certified, the 13,260 m2 of office space is let to the Norwegian Public Roads Administration, the County Governor of Oslo and Viken and KPMG, with a 10-year average lease term. The annual rental income is around NOK 35 million.
Bane NOR Eiendom is believed to have received six bids, with interest from both Norwegian and international investors. Pangea Property Partners advised the seller.
The building at Hansteinsgate 7 includes a conference centre, fitness room with changing room facilities, corporate restaurant, coffee shop and rooftop terrace.
Morten Austestad, Bane NOR Eiendom’s development director, said: ‘Drammen is very important to us. We have several major projects upcoming in the city, among them Proffen Hageby, Tangenkaia, Nybyen and Drammen health park.
‘The market can also expect future investments on our part in the city's most attractive office area by the railway station and river.’
The company specialises in owning, developing and managing railway properties.
