Major Swap Between Entra and Aberdeen
Norway Entra and Aberdeen Eiendomsfond Norge I have entered into a property swap transaction where Entra will buy the property St. Olavs plass 5 in Oslo for MNOK 850 (EUR 87M) and sell the properties Tollbugata 1, Pilestredet 19-21 and Pilestredet 28 to Aberdeen for NOK 1.1 billion (EUR 113M).
St. Olavs plass 5 is a 16,530 sqm property which is currently fully let to the Oslo University, Faculty of Law ("UiO"). The tenant will in December 2019 move to a new-build project in Tullinkvartalet which is under development by Entra. As part of UiO signing the 25-year lease contract in Tullinkvartalet, Entra took over the rental obligation towards Aberdeen for the Faculty of Law's remaining 6 years lease contract in St. Olavs plass 5, which will now be eliminated.
This transaction is strategically important as it adds a significant property to Entra's property cluster around the Tullin quarter. Through the development of the new Faculty of Law in Kristian Augusts gate 15, 17 and 21, the new office building in Universitetsgata 7-9, the forthcoming refurbishment of Universitetsgata 2 and other assets in the area, Entra will contribute to a significant urban development in this part of Oslo city centre. St. Olavs plass 5 is an exciting property with a significant potential to contribute to this development.
Closing will take place in two tranches: The sale of Pilestredet 28 is expected to close on 4 January 2019. The sale of Tollbugata 1 and Pilestredet 19-21 and the acquisition of St. Olavs plass 5 will close in the fourth quarter of 2019, when the refurbishment project in Tollbugata 1 is finalised.