WP Carey is acquiring an office complex in Norway's northern oil capital of Stavanger for NOK 733 mln (€87 mln).

WP Carey is acquiring an office complex in Norway's northern oil capital of Stavanger for NOK 733 mln (€87 mln).

The New York-listed REIT has entered into a purchase agreement for Finnestadveien 44 from Oslo-listed Norwegian Property.

The transaction price represents a NOK 42 mln profit to the asset's book value per end-March 2014. The deal reflects a yield of 6.13%.

The complex comprises two assets; a newly developed building offering 3,600 m2 which was occupied by the tenant in June 2014 and an existing building of 22,000 m2 built in 1975/1983. Both assets are fully let to oil and gas firm Total E&P Norge and generate around NOK 45 mln in rents a year.

The transaction is expected to close in August 2014.

Following the disposal, Norwegian Property has reduced its holdings in Stavanger to 9% of the gross portfolio value. DNB Næringsmegling acted as advisor in the transaction.

This is the second Norwegian acquisition carried out by WP Carey this year. The US investor entered the market in February with the purchase of the headquarters of Siemens in Oslo for NOK 544 mln.

The US firm bought the 15,300 m2 site from the original developer Oslo Business Park. Siemens, which has had its Norway HQ at the site for more than 40 years, has 12 years remaining on the current lease.