With reference to the press release of 03.11.2011, a company owned 50/50 by Veidekke Eiendom and OBOS Nye Hjem AS has now signed a binding agreement to purchase Middelthuns gate 17 in Oslo from Norwegian Property ASA. The gross property value, as previously announced, amounts to 700 MNOK. The greatest potential for the Middelthuns gate 17 property is most likely within its conversion to residential purposes, and the property has been purchased with a view to residential development. The property is fully leased to Nordea Bank Norway ASA until 2016, ensuring good cash flow throughout the development period with a net yield equivalent to approximately 6.1% for 2012. The property will be taken over 20 March 2012.
"This is a unique development property in an established and very attractive residential area, and one of only a few upcoming major housing projects in Oslo West," says Managing Director of Veidekke Eiendom, Arne Giske. "We are pleased to say that it once again means an opportunity to team-up with OBOS. Our experience cooperating on the development of Sjølyststranda, and other smaller projects, shows that the combination of our joint expertise and experience helps ensure attractive residential offerings and produces positive synergies," adds Giske.
For further information, please contact Emil Paaske, tlf. 21 05 76 60 eller 958 19 170.