Tamar European Industrial Fund announces that it has signed an unconditional agreement for the sale of a Special Purpose Vehicle which owns two adjoining assets in Ulsrud, a suburb of Oslo, Norway, for a net consideration of NOK 131.46 million (approx. 14 million) after a discount for latent tax. The sale price reflects a net initial yield of 7.98%.
After the discount for tax, the net price is slightly above the last valuation (September 30, 2011). The purchaser is a private investment company.
The first asset, John G Mattesonvei 4, comprises 6,682 m² of warehouse and office space and is leased to a single tenant, Ahlsell Norge AS, on a lease expiring in December 2014. The asset is held on a leasehold basis with 63 years unexpired, the leasehold interest having recently been extended by 32 years following negotiation with the freeholder.
Ostmarkveien 27, the second asset, comprises 5,620 m² of mixed warehousing, retail and office space and is fully let to a number of tenants. The largest tenant is supermarket operator Rema 1000, which accounts for 48% of the rent on a lease expiring in 2019.
The sale is due to complete in February 2012.
Rob Brook, Managing Director of Tamar Financial Services Ltd, Investment Manager to TEIF, commented: "We are making good progress with our sales program and are pleased with the pricing we are obtaining for the Fund. Nevertheless, it has to be acknowledged that the Nordic region is not immune from the current economic turmoil as local debt markets continue to tighten.
"[These] sales have quickly followed the disposal of two other Oslo properties and mean that 35% of the Fund's Nordic portfolio by valuation has now been either sold or unconditionally signed since we announced our disposal strategy for this portfolio."
Catella Corporate Finance and law firm Haavind advised TEIF on the disposal.
Source: FTI Consulting