Swedish real estate company SBB has acquired the headquarters of DNB Bank in Oslo for SEK 4.5 bn (€472 mln), reflecting a net yield of 4.15%.
The office in central Oslo comprises 49,000 m2 of flexible office space, generating annual rental income of NOK 180 mln (almost €20 mln). DNB, the largest bank in Norway and majority-owned by the Norwegian state, is the sole tenant. The remaining lease term is 10.3 years.
Dating from 2012, the 18-storey building sits between two other properties that are also occupied by DNB. The complex is located in the Bjørvika district, close to Oslo's Central Station.
'We are increasing our presence and strengthening our position in Norway with our largest property transaction', said Ilija Batljan, CEO of SBB and its parent company Effnetplattformen. 'The property is of strategic importance with a fantastic location in central Oslo with a stable tenant on a long lease. This acquisition means that we’ll keep investing in central Norwegian properties.'
Effnetplattformen is a collection of businesses that includes SBB. The group, listed on Nasdaq First North in Stockholm, is currently in the process of reorganising as a pure real estate company, under the name Samhällsbyggnadsbolaget i Norden (Planning company in the Nordics).
The acquisition is being financed through a combination of debt and equity. Effnetplattformen also issued 84 million shares, at NOK 5.53 per share, totalling NOK 470 mln, to the vendor, Meteva, a Norwegian company owned by Norwegian businessman Trond Mohn. A further NOK 470 mln of preference shares were issued to professional investor shareholders in SBB's Norwegian subsidiary which is acquiring the DNB headquarters.
