PORSGRUNN, NORWAY: R8 Property ASA has entered into an agreement with Skanska Commercial Development Norway to acquire Parallell, a sustainable and modern office property located in Økern, Oslo.
The 19,000 square meters and 15 storey building was completed in 2020. The transaction, which is expected to be completed in November 2022, is based on a gross property value of NOK 750 million, adjusted for increased rental income and represents a quantum leap for R8 Property in its growth journey.
Located in an area in development, Parallell is positioned next to the public transport hub, Økern, ten minutes away from Central Oslo by metro. The building is also easily accessible by car from Ring 3/E6 – one of Oslo’s main roads.
The building has been BREEAM certified and received Excellent Rating. Strict environmental requirements have been set for the building throughout its life cycle, including limited use of chemicals, recycling of materials and energy-efficient solutions.
The building has been developed with a focus on tenants’ well-being and offers excellent lighting conditions, which supports a good working environment. As a result, the building has achieved a WELL Core Gold pre-certification by the WELL Building Standard, which means that the property scores high on building features that impact human health and well-being. These certifications are in line with R8 Property’s focus on its environmental footprint, innovation and technology.
Today, seven of the 15 storeys have been leased by the flex space provider Evolve. In total 66% of the building is now leased.
“The acquisition of Parallell represents a quantum leap for R8 Property as we continue to work towards a property portfolio valued at NOK 5 billion. We were drawn to Parallell for several reasons. One of its strong points was its sustainable development and concept, which aligns with our vision to create a sustainable future,” says Emil Eriksrød, CEO in R8 Property.
“We have a successful track record in leasing out properties in Oslo and nearby areas. This building is spot on market demand with its central location, flexible office solutions and attractive environmental features,” says Emil Eriksrød.
Completion of the transaction is conditional upon financing. The company is considering making a private placement to finance the acquisition completely or in combination with debt financing.