Updated. Oslo City, the shopping and office building next to Oslo’s bus and train central station, is about to get a new owner. Current owner DnB is about to sell all its shares to Entra and Steen & Strøm that will split the property ownership between them, in an office and a shopping section.
Norwegian property company Entra has together with Steen & Strøm entered into exclusive negotiations with DnB Livsforsikring regarding the acquisition of 100 % of the shares of Oslo City Kjøpesenter AS. Steen & Strøm’s involvement was confirmed on Friday to Estatenyheter.no.
Oslo City Kjøpesenter AS owns the property Oslo City, a combined shopping center with a 11 million annual footfall and office property located next to the Oslo central station. The property consists of a 33,800 square meter shopping center, 33,700 square meter offices and around 13,100 square meter parking basement. The shopping part has 10.5 million annual visitors.
”We look at Oslo City as an attractive shopping center due to its location, but also due to its size.We see a potential and believe our international owner relations will contribute to the development of the center,” says investment director Bjorn Tjaum
If the transaction is completed the property will be sectioned and Entra will own the office part and 50 % of the parking basement, while the rest will be owned by the partner.
The offices are fully let, of which 96 percent to public tenants. Total transaction price is estimated to around 5 billion NOK, while Entra’s part of the transaction is estimated to around 1.7 billion.
The transaction is subject to satisfactory due diligence, board approval and approval from the Norwegian Competition Authority. The parties expect to enter into a share purchase agreement and to complete the transaction within year-end.