Madison International Realty announced that it has completed the acquisition of an additional 59.5% interest in the Statoil office complex in Oslo, Norway for NOK 680 Million (US $110 million).
Madison acquired its original 35% equity stake in the building in 2012, which represented the second largest single asset transaction in the Norwegian market of the year.
Madison’s further 59.5% interest comprises a 30.0% equity stake that it has acquired from Koksa, a Norwegian PLC formerly known as IT Fornebu, and a 29.5% stake purchased from various individual investors. This brings Madison’s total equity stake in the asset to above 90%.
The 65,768 sqm (721,000 square foot), nine-story class A asset is let in its entirety to Statoil ASA, a leading energy and gas production company, on a 15- year lease. Located in the Fornebu sub-market of Oslo, the asset is well placed to benefit from its proximity to a number of other domestic and international blue-chip company corporate headquarters.
Commenting on the acquisition, Derek Jacobson, Managing Director at Madison International Realty, said:
“This is a significant transaction for Madison as it has allowed us to acquire majority ownership of one of Oslo’s most iconic office buildings by providing an exit strategy for existing investors. The Statoil office complex is a prime, well-located and well-let asset in a core market that is well positioned to benefit from the strong Norwegian real estate market.”
Commenting on the sale, Kjell Kalland, Managing Director at Koksa Eiendom AS, the largest selling shareholder, said:
“We are pleased that our stake in Statoil’s Fornebu building has now been acquired by Madison, whom we recognize to be a very serious investor. We are delighted that through this transaction we have released significant funds in order to develop our company’s other real estate at Fornebu.”