In the summer of 2017, Colliers International Corporate acquired Storgata 5-7 in Oslo on behalf of an investor group. The purchase price was NOK 222 million, and the property had an annual rental income of NOK 13.5 million, with a guarantee from the seller for two years.
Now the Colliers syndicate is turning around selling the property to the syndication company Realkapital Investor. The sales price is confidential, but there is reason to believe that Colliers has achieved a value increase over the 2.5 years they have owned the property. The property, which is 6500 square meters, is rented to the beer place Brygg, various office users and a Stormberg store.
- We are grateful to have had the opportunity to acquire an office property with such a central location, 200 meters from Oslo Central Station. The property is rehabilitated and we have great faith in further growth in the area. In the next two years, the City of Oslo shall carry out a large-scale upgrade and renewal of Storgata with associated streets, public transport and pedestrians shall be given priority. The vacancy rate in the city center is low and we find that there is a great demand for office space, says Anders Mørland in Realkapital Investor.
- We have spent a lot of time and money developing this property which is now more or less totally rehabilitated. Our investors were offered a reasonable price for the property and therefore chose to sell now, says Erik Dagslett in Colliers International Corporate AS.
This article was originally published in Estate Nyheter.