Aberdeen Standard Norway Balanced Property Fund AS has acquired an office asset located at Akersgata 16 in Oslo, Norway, from Promenaden High Street AS, a platform company of pan-European private equity real estate investment manager MARK (formerly known as Meyer Bergman), for an undisclosed sum.
As part of Promenaden’s active asset management strategy, the 4,829m² property, which is let to a mix of office and retail tenants, had undergone significant upgrades to modernise the building and seen significant leasing activity. Current occupiers include coffee shop chain Kaffebrenneriet and furniture store Vitra Scandinavia on the ground floor, and energy and fiberoptic infrastructure supplier HCA Melbye AS, which recently moved into the top floor space. There are 12 tenants in total.
Akersgata 16 sits on one of Norway’s most important streets, with Akersgata being home to the Norwegian parliament and the Regjeringskvartalet complex, which hosts several government departments. The property enjoys close proximity to the newly renovated Wessels Plass public square, one of Oslo’s main attractions and a key driver footfall to the area.
"We look forward to taking over a very attractive property in the heart of Oslo, located just by the parliament. With the upgrade of Wessels Plass and Prinsens gate, as well as the interior upgrades, this is a property that will be in demand by both retail and office users for many years. An important strategy for the fund has been to invest in centrally located, high-quality properties, and we believe this will be a good contribution to a rapidly growing portfolio," said Lise Berge Brattvag, Fund Manager at Aberdeen Standard Investments.
"The property has undergone significant upgrades and re-letting in recent year and in combination with the central location, Akersgata 16 is well-positioned to meet future demands. We have several funds and mandates that plan to increase their exposure in Oslo, and will thus be active on the buyer side going forward," said Jens-Petter Guthus, Head of Transactions, Nordic Region at Aberdeen Standard Investments.
"The disposal of Akersgata 16 marks a continuation of our strategy of consolidating the Promanaden portfolio through the sale of non-strategic assets and underlines investor appetite for high-quality properties that have benefited from proactive asset management. Prior to this transaction, we had undertaken significant refurbishment works to enhance the building’s value, which in turn supported our leasing strategy," commented Mark Gamble, senior managing director and head of asset management at MARK.