11 billion deal as DNB sells whole Fortin and Sveareal portfolio

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DNB Fund Fortin has signed an agreement with Starwood Capital Group, the world’s third largest property management company for the sale of the majority of the real estate portfolio in DnB NOR Eiendomsinvest I.
This means Swedish Sveareal and Norwegian Fortin will have a new owner.

The assumption is that the General Meeting in DnB NOR Eiendomsinvest I ASA approves the sale. The transaction is therefore priced at approximately 11 billion NOK and will totally be the largest Nordic property transaction in 2014.

The objective of the Board of DnB NOR Eiendomsinvest In ASA is according to the press release to create liquidity for shareholders. Early 2014 a sales process for SveaReal AS was initiated, where it simultaneously was considered an IPO.

Summer 2014 the process was extended to include the Norwegian operations in FORTIN AS.
”We are pleased today to finally be able to submit an offer to the shareholders in DnB NOR ASA Eiendomsinvest I representing a real exit option,” says chairman Erik Gjellestad press release.

As DnB NOR Eiendomsinvest In ASA was established in 2005/06, the fund would have a lifetime of 10 years, but with the possibility of extension. At the Annual General Meeting in May was the mandate extended from 30 June 2016 to 30 June 2019. The reason was the process initiated by SveaReal AS in Sweden.

The acquisition of Sveareal includes a collection of 79 properties in Sweden, consisting of office (49% of the portfolio), logistics/industrial (37%), hotel (7%), retail (6%) and other (1%) assets totaling 838K square meters of gross leasable area, as well as SveaReal Fastigheter’s management platform.

Here you can see Fortin’s properties.

Here you can see Sveareal’s properties.

The acquisition is also Starwood’s first major investment in Norway, but a year ago the American Group entered Sweden buying seven retail properties from KF.