Strong rental growth is anticipated.
The 4,509 m² retail space, which accounts for 94% of the total rent, has been let to H&M (Hennes and Mauritz), one of the world’s largest fashion retailers, on a 30-year lease. This landmark building is H&M’s flagship store for Oslo and Norway. The remaining 540m² of the building provides refurbished office space with views across the city.
The deal was financed by 50% of debt provided by Skandinaviska Enskilda Banken.
CBRE Investors was advised by Jones Lang LaSalle and CBRE Norway. Bugge Arentz-Hansen & Rasmussen and Ashurst provided legal advice.
Richard Everett, Managing Principal of the fund, commented: “We are very excited about this acquisition in Oslo. Norway is an attractive investment market given the high GDP per capita and the robust, commodities based economy. Prime retail is a favored investment class and demand is particularly strong from domestic and Nordic institutions. The Nordic retail sector was identified as an area with strong fundamentals following research by CBRE Investors and with limited Grade A stock available we anticipate strong rental growth driven by a strong Norwegian consumer and increasing retailer demand."
Source: Citigate Dewe Rogerson