Gjelsten Bolig and Union are working together on housing construction in Oslo

Union Residential Development, Union Real Estate Fond IV and Gjelsten Bolig have entered into an agreement to establish a joint housing development company with a focus on Oslo. The company will receive a land bank of close to 600 homes spread over seven projects in Oslo that will be developed over the next few years. The transaction has a value of NOK 1.5 billion.

"There is a clear need for more housing in Oslo, and thus the Oslo market is the market of opportunity if we now speed up housing construction. Because it is needed," says Baard Schumann, partner and CEO of Union Residential Development. "With our joint venture, we are establishing a unique and exciting company within housing construction in Oslo. With a total of seven development projects, this is a clear signal that we have great ambitions and strong faith in the Oslo market. So this will be exciting."

"We look forward to working with one of Norway's brightest housing developers in the most important housing market in the country. Gjelsten Bolig has a long history as a skilled housing developer through Profier and Neptune Properties. Together we will develop the projects and get them on the market as quickly as possible , so that as many people as possible can fulfill their housing dream. One of the projects will be launched for sale this autumn, and more will follow in 2025," says Schumann.

"For Gjelsten Bolig, it is very exciting to be able to enter into a collaboration with Union, where the team has extensive experience and high competence in housing development," says Ola T. Gjørtz, who represents the main shareholder in Gjelsten Bolig, Gjelsten Holding AS. "Gjelsten Bolig has ambitions for further growth, and Union will be a possible and important capital partner in other projects to be developed," says Gjørtz.

Pareto Securities has been the facilitator of the transaction, and states that the transaction has a strong industrial rationale, where a renowned housing developer joins forces with a financial player with specialist expertise in housing development. The new company will become a strong and significant housing player in Oslo.

"We see that in the coming years there will be a large housing deficit in Oslo, as the rate of regulation has been low in recent years. Through the collaboration with Gjelsten Bolig, we are equipped to take on exciting projects that are expected to create great value, says partner and CEO of Union Eiendomskapital," Lars Even Moe.

The new, jointly owned company Gjelsten Residential Oslo (GRO) will be led by Even Jermstad, managing director of Gjesten Bolig.

Gjelsten Bolig's advisers in the transaction have been Pareto Securities AS and Advokatfirmaet Selmer, while Union's advisers in the transaction have been Advokatfirmaet Thommessen.