Storebrand Eiendomsfond Norge KS acquires Scandic Helsfyr from Eiendomsspar. Scandic Helsfyr is being expanded and will become Scandic's largest hotel in Norway when it is completed in the fall of 2020, with a total of 450 rooms.
The hotel is centrally located in the Helsfyr neighborhood in Oslo, close to the E6 motorway passing towards Oslo city center. This is one of Oslo's fastest growing areas with a number of office and housing development projects.
The buyer, Storebrand Eiendomsfond Norge KS (SEN KS), is Norway's largest unleveraged real estate fund and is managed by Storebrand Eiendom. SEN KS already owns 17 properties, of which Scandic Fornebu has so far been the only hotel.
Scandic has signed a lease that runs until 2037 and is investing substantially in upgrading the existing part of the hotel. The upcoming expansion will increase the number of rooms from 253 to 450, and will expand the conference and restaurant facilities. The hotel will then have a total area of approximately 18,000 sqm. Eiendomsspar guarantees an agreed rental income for the next five years.
Scandic is the Nordic region's largest hotel operator with a network of approximately 270 hotels and 52,700 rooms in six countries. Scandic focuses on eco-friendly operation of its hotels, and after the expansion Scandic Helsfyr will be certified as BREEAM Very Good.
“The acquisition is in line with the fund's mandate and growth strategy, and is done within an exciting real estate segment where Storebrand has wanted a greater presence. Scandic Helsfyr is located in a fast-growing urban area with excellent public transportation, and is strategically located between Oslo Airport and downtown. We are confident that our extended partnership with Scandic will be beneficial, and that the expansion of
the hotel will add positively to the development of the area,” said Truls Nergaard, Head of Storebrand Eiendom.
“We are very pleased that Storebrand picks up the baton, we look forward to a positive collaboration towards completion, and we feel confident that they will continue to manage the property well. We have great faith in Scandic Helsfyr and the success of the expansion,” said Christian Ringnes, CEO of Eiendomsspar.
Pangea Property Partners (financial advisor) and DLA Piper (legal advisor) have assisted
Eiendomsspar in the transaction, while Haavind has been legal advisor to Storebrand.