Norwegian real estate firm Reitan Eiendom has acquired a hotel and office building in Oslo, Norway, from AF Eiendom and Höegh Eiendom.
Financial details were not disclosed, but the sale is estimated to provide an accounting gain of at least NOK 60 mln (€6.3 mln) for AF Gruppen.
The property, Karvesvingen 7 on Hasle Linje, is being disposed of via the sale of 100% of the vehicle invested in the property. The current ownership is 49.5% AF Gruppen, 49.5% Höegh Eiendom and 1% Vind AS.
The buyer is Christiania Areal, owned 100% by Reitan Eiendom.
'This is a new, modern and future-oriented building in an area in continuous development, and with the terms agreed, we have good faith that this will be a good investment for us,' said Ingolv Høyland, CEO of Reitan Eiendom. 'We will collaborate with Høegh Eiendom on future management.'
Karvesvingen 7 is a combined hotel and office building of approximately 21,000 m2. The main tenants are Nordic Choice Hotels, Nordic Entertainment Group and Sterk Helse og Trening, which all moved in during 2021.
The building was built by AF Gruppen and is BREEAM-NOR Very Good environmentally certified.
AF Eiendom and Höegh Eiendom have developed a completely new mixed-use district at Hasle in Oslo over the last decade. K7 is the latest major addition to the area development and the first hotel in Hasle.
In addition to 208 hotel rooms, the building includes office space with both radio and TV studio, a large gym downstairs and an indoor street with common areas, dining rooms, conference facilities and a walkway.
Pangea Property Partners was a broker in the sale.
