Three commercial real estate investors in Norway will pocket the biggest gains after the sale of retail property in downtown Oslo that’s mostly leased to luxury clothing stores including Hermes, Gucci and the Steen & Strøm shopping center.
Together the trio made up of Hans Petter Krohnstad, Carl Erik Krefting and Runar Vatne control Søylen Eiendom, which along with US-based partner Madison International Realty is selling a portfolio of 11 retail and business properties to real estate fund Meyer Bergman. Newspaper Dagens Næringsliv (DN) reported that Meyer Bergman is paying NOK 5.3 billion (USD 646 million) including debt.
While other Norwegian real estate tycoons have built up their fortunes by never selling, the Søylen trio will sit with around NOK 1.3 billion in pure gain after getting what Krefting called “a good price” for the properties. Most of them are concentrated around Eger Torget and in Nedre- and Ovre Slottsgate. Tenants include Hugo Boss, Bottega Veneta and Marc Jacobs. The Posthallen commercial complex located a few blocks away was also in the portfolio sold to Meyer Bergman.
DN has reported that foreign investors led by Swedes, Americans, Germans and the British have been buying up Norwegian commerical real estate at high prices. The Søylen deal is second only to Sektor Gruppen’s NOK 12.3 billion sale of various shopping centers around Norway earlier this year.