The 19,000 sq.m. building is located next to Citycon’s Oasen shopping centre in the Fyllingsdalen area. The seller, Tryg, is the anchor tenant with their Norwegian headquarters located in the office building. The acquisition is expected to be closed in January 2017.
 
The acquisition creates new opportunities for Citycon to develop and expand the Oasen shopping centre from its current 31,500 sq.m. Citycon’s plans include adding approximately 11,000 sq.m. of leasable area by converting the main part of the two lowest floors of the office building into retail space as well as constructing a new part that further connects the two buildings. Tryg will remain as an anchor tenant with a 10-year lease with an extension possibility.
 
“Oasen fits perfectly with Citycon’s strategy to invest in urban shopping centres driven by daily needs and situated in locations with strong demographics. After acquiring the remaining 31 per cent minority shares in Oasen in November last year, this acquisition is the logical next step to enable further development of the shopping centre towards  creating another flagship within our Norwegian portfolio,” says Marcel Kokkeel, CEO at Citycon.
 
The city in Bergen is also planning increased housing in the proximity of Oasen, with approximately 5,000 new residential units to be built by 2030.
 
“Oasen is in the heart of the city’s new urban planning and we aim to make Oasen the town square and transportational hub for residents in the area. We clearly note Oasen’s attractiveness and that there is a great deal of interest in establishing shops and concepts. The previous (re)development and extension in 2014 was successful and tenant sales in Oasen have increased by 25 per cent since 2012,“ says André Gaden, Commercial Director at Citycon.  
 
The planned development work is expected to start in 2019, after the finalisation of a zoning process.
 
Pangea Property Partners acted as Citycon’s advisor in the acquisition.