UBS Global Asset Management's real estate arm said that its UBS (D) Euroinvest Immobilien fund has acquired an office building in central Oslo from listed real estate firm Norwegian Property. The transaction amount comes to NOK 738 mln (EUR 89 mln). The property, which totals over 22,000 m2, is multi-let with Astrup Fearnley as anchor tenant and an average lease length of 7.5 years. The gross annual rental income in 2009 will total over NOK 46 mln and result in a gross initial yield of 6.3%.Closing is expected for January 2009.
UBS Global Asset Management's real estate arm said that its UBS (D) Euroinvest Immobilien fund has acquired an office building in central Oslo from listed real estate firm Norwegian Property. The transaction amount comes to NOK 738 mln (EUR 89 mln). The property, which totals over 22,000 m2, is multi-let with Astrup Fearnley as anchor tenant and an average lease length of 7.5 years. The gross annual rental income in 2009 will total over NOK 46 mln and result in a gross initial yield of 6.3%.Closing is expected for January 2009.
'This acquisition is our first in Norway and ideally suited for this fund: a prime property with long lease lengths, currently under-rented with potential for significant reversion and located in an attractive submarket of Oslo CBD. The transaction is also reflecting the general outward shift in yields we have been anticipating as buyers in this market,' said Christian Paul, fund manager of UBS (D) Euroinvest Immobilien.
UBS (D) Euroinvest Immobilien is an open-ended KAG fund investing in European office properties. UBS was advised by Pareto Private Equity and Bugge, Arentz-Hansen& Rasmussen advokatfirma.
