On behalf of Close Investments, King Sturge has acted in the acquisition of a mixed portfolio of 15 properties located in Norway to add to the European Property Investment Portfolio ("Europip"). Europip invests in commercial property in mainland Europe, including Scandinavia. The Fund can invest in direct property as well as select open and closed ended European property funds.
Martin Towns, Close Investments Property, said: "We are delighted to have signed contracts on this portfolio of office & industrial properties, adding to the existing allocation of properties within Europip. Norway has a fast growing economy and rental growth looks set to outperform the remainder of Europe. In addition, this portfolio offers considerable scope for active asset management. We invested at an attractive initial yield of around 7.5%, with a longer average lease length of around 7 years remaining, compared to a UK average of around 5 years. In addition to this purchase, we continue to seek investment opportunities throughout the region. This portfolio gives immense momentum to our European investment strategy and demonstrates that it is possible to seek out assets that should deliver excellent returns in the future. "
"This acquisition represents excellent value in the Norwegian and European property market" Penny Hacking, King Sturge, added. "Supply in the office and industrial sectors of the Norwegian market is limited and the portfolio is reaping immediate returns for Europip. This transaction is expected to be the largest in Norway for 2008 and it highlights our client's belief in the Norwegian property market."
Source: King Sturge