Tamar European Industrial Fund announces that it has signed an unconditional agreement for the sale of two assets in the greater Oslo district, for a net price of NOK 140 million (approx. 17.8 million). The sale price reflects a net initial yield of 7.21% and is 9% above the last valuation (September 30, 2011). The purchaser is a private investment company.
Both assets are located to the north east of Oslo. The first is situated in the suburb of Furuset and comprises part of an established light industrial zone. Dating from the 1960s, the asset provides 11,380 m² of warehousing and ancillary offices and is 92% let (by floor area) to 13 tenants.
The second asset is located in Skedsmo, halfway between Oslo and its main airport, Gardermoren. It dates from the mid-1980s and comprises 6,786 m² of light industrial and office space, leased to 10 tenants, and is 91% let (by floor area).
The sale is due to complete in December 2011.
Rob Brook, Managing Director of Tamar Financial Services Ltd, Investment Manager to TEIF, commented: "This is another successful transaction, at a significant premium to valuation, following the earlier sales of assets in Norway and Finland. It demonstrates that, despite the global economic uncertainties, there remains a good level of demand for well-located secondary assets.
"Marketing efforts on the other Nordic assets continue in line with our disposal strategy and we expect to make further announcements in this regard in due course."
Colliers International and law firm Haavind advised TEIF on the disposal.
Source: FTI Consulting