Eiendomsspar’s waterfront office complex at Tjuvholmen Allé 1-5 in Oslo’s CBD has been sold in just two weeks for a record price believed to be around NOK 2 bn (€190 mln).
The landlord, Norwegian property company Eiendomsspar, has granted exclusivity on the asset and signed a letter of intent with Canica, a local family-owned holding company, owned by Norwegian billionaire Stein Erik Hagen.
Dubbed Project Titan, the waterfront complex was put on the market in early September through agent Pangea Property Partners, as reported by PropertyEU on 8 September. It was expected to receive strong interest and it immediately received a very appealing offer from Canica, which convinced the owners to seal a deal right away. Due diligence will start immediately, with closing of the transaction expected for November.
The deal is believed to reflect a yield close to 3%, setting a record for Oslo’s prime offices which are currently trading at around 3.5%.
‘It is sad to sell one of the absolutely most beautiful properties in our portfolio. However, we are very pleased that a solid and long-term player such as Canica will be the new owner,’ said Christian Ringnes, CEO of Eiendomsspar. ‘Eiendomsspar bought the building in 2011 and it has been a fantastic building to own and work with, through these years. Vika Project Finance/Canica quickly came on the scene after we entered the market with the property and has acted very efficiently, professionally and decisively. In the end, we agreed on a bid acceptance before we were presented with the prospectus in the market.’
Eiendomsspar acquired the fully let complex from Aberdeen Asset Management in 2011 for NOK 875 mln (approx. €83 mln). It then spent around NOK 50 mln to refurbish the asset.
The ensemble comprises around 15,000 m2 of multi-tenant office space and is located on Tjuvholmen in what is widely regarded as the most exclusive business area of the Norwegian capital. With a WAULT of 6 years, the complex is occupied by tenants including Pangea Property Partners, which occupies 15% of the property, law firm Selmer (61%), WeWork (19%) and BearingPoint (5%). The building is expected to generate a gross rental income of NOK 66 mln in 2021.
Tjuvholmen Allé 1-5 was designed by renowned architect Niels Torp and completed in 2008. Several office floors underwent full refurbishment in 2017-2019, in addition to parts of the common area and entrance area. The transaction covers nine above-ground floors and 20 indoor parking spaces. The ground-floor restaurants and art gallery are not included in the sale.
