Avignon Capital identified Østensjøveien 27 as an opportunity to purchase a high-quality environmentally sustainable building, in a growth area of Oslo, with strong tenants, CPI linked annual uplifts, and achieve strong annual distributions. 

The building was nominated in the top 100 most sustainable buildings in the world, holding a BREEAM “Excellent” rating. The main tenant NCC is one of the leading construction and property development companies in the Nordic region. This purpose-built property was built as a showpiece for their environmental credentials. 

The property is located at Helsfyr, an important and established business location and 7 minutes by metro to Oslo centre. The rationale for this investment was that an uplift in rents could be achieved as the current rents in Helsfyer were half of CBD and there are excellent public transport links to this area of the city. Alternatively, Avignon could convert the use as the building is designed to allow for future conversion to higher value residential use, for which all permits were in place.

Avignon sold Østensjøveien 27 for €61m, producing an 87% return on equity. The asset provided consistent returns to investors alongside sustained capital growth under Avignon Capital’s ownership.

Despite completing the letting of the final vacant floor within 3 months of practical completion, the ability to unlock further rental growth was outweighed by a strong purchase offer, which was well above valuation.