NRP fund selling development property in the Stavanger region for 60 MNOK

- The councilman in Sandnes municipality has previously suggested that the municipality should buy parts of the plot for sports purposes, but it has not yet done so. Moreover, it is not certain that the municipality has the finances to carry out such a purchase, says adviser Jostein Gjerde in Colliers International.

 

The property has a land area of approx. 13.2 acres, and is located near a primary and lower secondary school, kindergarten, grocery store and sports facilities. The industrial area is now being transformed into a residential area, and during the spring it will probably be decided whether parts of the plot will be allocated for sports purposes.

 

- The property has a good cash flow nevertheless, and the buyer does not pay very much over the normal yield, therefore it is a relatively low risk investment, says Gjerde. Prinsens vei 5 is the former main warehouse / administration building for ASKO, and the main part of the building is now rented out to Extra Leker's online store.

 

Most of the area is leased until 2022. Leases provide an annual cash flow of approx. NOK 3,350,000 in 2018, and increases to approx. NOK 4.6 million until 2022. According to Colliers International, there is potential for further rental income, as approx. 1,000 square meters of office space is currently vacant.

 

- We are now running a parallel process of leasing and selling the property, says Gjerde. In the prospectus, potential buyers are especially encouraged to clarify future regulatory changes directly with Sandnes municipality. The sale of the property takes place through the disposal of all the shares in the single purpose company Prinsens vei 5 AS.

 

 

This article was originally featured in Estate Nyheter. 


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Thomas J. Middelthon

General Manager/Partner Stavanger

Oslo

Thomas heads Colliers' Stavanger office which he started in 2017. Thomas works with leases, tenant representation and transactions. He does office, industrial and retail/restaurants. He has a broad experience from the market in the Stavanger Region since 2003, thus has an extensive knowledge about this market. He previously worked for Øgreid Eiendom, Handelsbanken,  KAS/Andersen Consulting and Telenor.

 

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Jostein Gjerde

Real Estate Advisor

Stavanger

Jostein started working for Colliers International in February 2018 and works primarily with leasing and transactions focusing on the Norwegian commercial real estate market in the region of Stavanger. Jostein has over 20 years of experience with B2B, and has in the last 15 years been working within leadership and sales in the IT industry. In addition to this, he was over a period of five years, working for DnB Bank, responsible for small and medium sized enterprises in the region of Rogaland in Norway.

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