Madison International Realty has entered into an agreement to acquire and consolidate around 409,000 square feet in Bjørvika, an infill development in Oslo, Norway, which marks the country’s largest urban project.
The development is made up of six stages—Sørenga, Sørengkaia, Munch Brygge, Barcode, Bispevika North and Bispevika South. So far, the firm has acquired Sørenga and its parking facilities as well as Sørengkaia. Furthermore, Madison International Realty has entered into an unconditional SPA to acquire Munch Brygge. Oslo S Utvikling (OSU), the project’s developer, has also accepted a bid from the company to acquire the ground-level commercial spaces in Barcode and Bispevika North. Bispevika South is still in development and was not included in the deal.
“OSU continues to develop residential units and offices in Bjørvika, as well as commercial assets located at other land plots that we control in Bjørvika. Until the execution of the share purchase agreement, we will continue the leasing process in Barcode and Bispevika North,” said Rolf Thorsen, CEO of Oslo S Utvikling, in a prepared statement.
Oslo’s new CBD
Bjørvika has established itself as the new central business district in Oslo, with its convenient access to the largest public transportation hub and the Oslo fjord. It will also act as the city’s new cultural district, where the Norwegian National Opera & Ballet, Munch Museum and Deichmanske Public Library can all be found.
The development will create an open urban floor environment on the ground level that will house retail, food and beverage, leisure and other services. Separately owned and managed offices and residential units will be located above, totaling nearly 12,000 apartments and housing more than 20,000 employees. Sørenga, Sørengkaia and Barcode were completed between 2016 and 2018, while Munch Brygge will be completed in the first quarter of 2019 and Bispevika North will be completed in four stages, between quarter one of 2019 to quarter four of 2020.
Carucel Eiendom will oversee asset management for the acquired properties. This marks Madison International Realty’s third investment in Norway. The purchases were all facilitated by Norwegian investment bank Arctic Securities.
In November, a joint venture between Madison International Realty and Peakside Capital AG sold the shares for the office property of Frankfurt Airport Center in Germany for $190 million to a partnership between Godewind Immobilien AG and ERWE Immobilien AG.
Image courtesy of Madison International Realty