BSA AS, a property investment manager in Norway and Germany, will join forces with Glitnir Property Holding. Together, they will reinforce the position as a leading provider of property advisory and investment management services in the Nordic region, targeting further growth organically or through acquisitions. Pro forma value of property under management will be approx. €2.7 billion, and the combined entity acted as advisers in property transactions totaling approx. €5 billion in 2006. The combined entity will have a total of 84 employees and offices in Oslo, Stockholm, Helsinki and Frankfurt.
BSA is a Norwegian commercial real estate investment management and syndication firm with 14 employees and offices in Oslo and Frankfurt. In the last five years, BSA has managed property investment companies that have executed acquisitions and divestments with a total transaction value of approx. €3.5 billion. The company currently has €0.5 billion in property under management, including properties in Norway, Sweden, Finland and Germany. BSA also has €90 million of non-property assets under management. In 2007, BSA successfully launched the investment fund Prime Office Germany, raising €200 million in the largest Norwegian commercial real estate share issue ever. The proceeds will be used to purchase office properties in Germany for a total of approx. €0.8 billion. In 2006, BSA established BSA Berlin AS, an innovative property investment fund that offers investors exposure to the real estate market in central Berlin. After the completion of the investments on behalf of BSA Berlin and Prime Office Germany, BSA will manage a commercial real estate portfolio with a total value of approx. €1.4 billion. Together, BSA and Glitnir Property Group's subsidiary Union Eiendomskapital, will be the largest property investment manager in the Norwegian market.
"Through this transaction, Glitnir further strengthens its position as one of the strongest investment banks in the Nordic property market with commercial real estate advisors and specialists located in Oslo, Stockholm, Helsinki and Frankfurt," said Lárus Welding, CEO of Glitnir. The financial group Glitnir offers universal banking and financial services with the Nordic region as home base but operate globally in selected niches and have offices in 11 countries when its New York office (Glitnir Capital Corporation) opens later this week.
"We were impressed by the efficiency and professionalism demonstrated by BSA in the Prime Office Germany and BSA Berlin projects. Going forward, we will be able to leverage on BSA's unique competence and network to the benefit of our clients," said Peter Leimdörfer, Managing Director of Glitnir Property Holding.
"Together with Glitnir Property Holding, we will be able to take our business model several steps further, and I'm very enthusiastic about the possibilities that this merger creates," said Petter Bjørnstad, Partner in BSA.
Glitnir Property Holding is the parent company of Glitnir Property Group and Leimdörfer, and has entered into an agreement to acquire 100% of the shares in BSA AS. The purchase of the shares in BSA is executed through a combination of cash settlement and issue of new shares in Glitnir Property Holding. The price paid does not materially affect the financial situation of Glitnir banki hf. Peter Leimdörfer is Managing Director, and Frank O. Reite is Chairman of the Board in Glitnir Property Holding and Executive Vice President in Glitnir..
The parties have agreed not to disclose the terms of the transaction. The transaction is subject to regulatory approvals in Iceland and Norway.