A fund and clients advised by Meyer Bergman, the real estate investment management firm, have agreed to purchase a portfolio of 11 prime properties in central Oslo's principal shopping district for €554 mln (5.3 bln NOK). The Norwegian company selling the assets is 65% owned by Søylen Eiendom and the balance by Madison International Realty.
The portfolio's properties are concentrated on or around Karl Johans Gate, the prime shopping street of the Norwegian capital, and include the Steen & Strøm and Eger Karl Johan department stores. Tenants include Hermes, Gucci, Bottega Veneta, and Georg Jensen. The purchase is consistent with previous high street investments in the Nordic region by Meyer Bergman, which has also purchased assets on avenue des Champs-Elysées in Paris and Bond Street in London.
Markus Meijer, Chief Executive Officer of Meyer Bergman, said: "This is a signature high street investment for us. The portfolio is made up of prime assets in a superb location in Oslo that is a magnet for Norwegian shoppers and tourists. The luxury retail offer in Oslo is still quite limited for a city with such a wealthy and growing population, which is why we see plenty of scope to add value to these assets for our investors."
Carl Erik Krefting, Chairman and Founding Partner of Søylen Eiendom, said: "For six years we have worked hard to develop a prime high street shopping location in downtown Oslo. It is now well established and has attracted some of the world's top brands, with many more wanting to open stores there. We will remain involved in the management of the business, and adding Meyer Bergman's international experience to our own expertise will create a strong new dynamic to the project that we started. We look forward to this cooperation."
Derek Jacobson, Managing Director for European Investment at Madison International, said: "The sale of the Promenaden Property portfolio just two years after we acquired our interest in it has generated excellent returns for our investors, validating the view we took ahead of many other international investors on the opportunities arising in Norway."
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