AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), the leading real estate portfolio and asset manager in Europe(1) announces that it has completed the acquisition of Lille Grensen 7, a prime retail and office asset in central Oslo, for c. €45 million. The property was acquired from Nordea Liv Eiendom by AXA IM – Real Assets’ Pan-European Value-Added Venture (“PEVAV” or the “Venture”)(2), and will be extensively repositioned in order to maximise its value, in line with the strategy of the Venture.
Lille Grensen 7 is a c. 6,980 sqm mixed-use high street asset arranged over nine floors, two of which are at basement level, and the property currently comprises 4,000 sqm of office, 2,000 sqm of retail, 750 sqm of restaurant, and 230 sqm of storage space. The complex is being acquired with 51% vacancy, providing scope for AXA IM – Real Assets to undertake a comprehensive repositioning programme.
The landmark asset benefits from an unrivalled central Oslo location. Neighbouring buildings include Stortinget, home of the Norwegian Parliament, in addition to a host of high street retailers on the pedestrianised Karl Johan, Oslo’s premier shopping street. Lille Grensen 7’s strong location is expected to draw high demand from both retail and office tenants, with low vacancies in the area.
This transaction is directly in line with PEVAV’s value-add investment strategy, which is focused on office, retail and logistics assets in Europe's key real estate markets. It builds upon AXA IM - Real Assets' expertise in sourcing and executing value-added transactions, and its ability to create value through both active asset management and timely acquisitions in markets offering significant pricing dislocation.
Fredrik Söderlund, Senior Asset Manager Nordics at AXA IM - Real Assets, commented: “Lille Grensen 7 presents an attractive opportunity within a prime Oslo location to redevelop a core asset, adding value through both a thorough refurbishment and repositioning programme in order to effectively capture pricing appreciation for the benefit of our investors.”