AMF, one of Sweden's largest pension providers, has paid SEK 3.3 bn (€350 mln) for a half share in Oslo Areal, owner of 250,000 m2 of commercial real estate in Norway.
AMF, one of Sweden's largest pension providers, has paid SEK 3.3 bn (€350 mln) for a half share in Oslo Areal, owner of 250,000 m2 of commercial real estate in Norway.
The investment creates a 50:50 joint venture with Norwegian insurer Gjensidige Forsikring to own Oslo Areal.
The insurer used its Oslo Areal unit to own, manage and develop real estate investments. The current €700 mln portfolio comprises 21 properties, mainly office building located at hubs in and around the Norwegian capital.
The transaction, conditional on regulatory approval, is expected to close on 3 November.
Gjensidige reported pre-tax profits of NOK 952 mln (€103 mln) for the third quarter of 2015 and total assets of about €12 bn. AMF is much bigger, both in terms of total assets and real estate investment: it had total assets under management of €58 bn at end-June this year, and €5.8 bn of this was invested in real estate.
The partners plan to carry out all their future real estate investments in Norway through Oslo Areal. The €350 mln paid by AMF for its 50% stake will be re-invested in the Gjensidige's property portfolio.
The alliance, Gjensidige added, strengthened Oslo Areal's ability to exploit 'attractive growth opportunities' in the market as it will have the capacity to take part in major investment transactions and development projects.
