“The development and sale of Valle Wood and Valle View are prime examples of successful property development. NCC has been an active driver in this urban development project, making the Valle area a vital part of the Norwegian capital,” says, Thomas Dahle, Head of NCC Property Development in Norway.
NCC’s development project in Valle covers nearly 60,000 square meters of office development rights and is strategically located: easily visible from the E6 motorway and close to the subway, airport buses and transit routes.
The office projects are being built in phases; Valle Wood was completed in the summer of 2019 and is Norway’s largest commercial property in solid wood. The second phase, Valle View, has been started and leased to the Norwegian Directorate of Immigration, with completion planned for the second quarter of 2021.
In addition to the two initial projects, approximately 27,000 square meters of office development rights remain, including about 83 parking spaces in the Valle Vision project.
Valle Eiendom Holding AS, a newly formed property company established by Pareto Securities, has signed an agreement with NCC to acquire the entire Valle project, which covers all the phases including the remaining development rights, for an underlying property value of nearly SEK 2 billion.
The transaction will be implemented in the form of a company divestment in the NCC Property Development business area. The first stage encompasses Valle Wood and Valle Vision (development rights) and is expected to generate a positive earnings effect in the fourth quarter of 2019.
Transfer and payment of the purchase consideration for Valle View are expected to result in a positive earnings effect in conjunction with completion in the second quarter of 2021.
At the time of signing this agreement, the leasing rate was 87% for Valle Wood and 69% for Valle View. In conjunction with the sale, NCC is offering rental guarantees for unleased areas for a period of five years from the transfer of the respective phases.
Helsfyr is a well-established office area in Oslo. The development of Valle is part of the overall development plan for the area, which also includes a stadium for the Vålerenga football club, shops, a school and approximately 300 residential apartments.
Valle Wood and Valle View will be environmentally certified under the international BREEAM system, with a rating of Excellent. NCC’s objective is to minimize the environmental impact and add value for customers and society with environmentally certified buildings, attractive workplaces and inclusive urban environments.