American investment fund buys half Steen & Strøm

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The American investment fund Madison International Realty buys half of Steen & Strøm for 320 million NOK.

”We see a need for more Norwegian establishments, especially in the luxury segment”, says Madison’s Derek Jacobsen.

The american investment fund came in as a partner to Søylen last year with a 30 percent share in Promenaden Property. Now they will own Steen & Strøm Magasin together.

Madison’s European investment manager, Derek Jacobsen, tells Dagens Naeringsliv there is a growing need for store establishments in Norwegian retail, especially in the luxury segment.

Schage Eiendom’s and Søylen Eiendom’s joint venture High Street Shopping owns the Steen & Strøm Department store building and the H&M-building in Oslo since 2011. Now Madison International Realty buys Schage Eiendom’s share of the company.

According to Dagens Naeringsliv, Knut and Bjørn Schage make a profit of 100 million. Initially they planned to stay as owners for six to seven years, but the offer from Madison was to good.

”We did not need many days to decide. It was an easy step once the offer was on the table”, Knut Schage tells Dagens Naeringsliv.

Totally, the owners have spent 300 million on refurbishing Steen & Strøm. The work will be finished in November.

Egil Svoren, CEO of Schage Eiendom says the company now has 500 million NOK to spend on new projects, among them a total facelift of Stortorvet 7, a 33 000 square meter facility in central Oslo.