Aspelin Ramm has sold one of the Nordics’ most attractive shopping centres, ALNA centre, after 40 years’ ownership.
ALNA is Oslo's third largest shopping centre and a popular retail venue with highly loyal customers. It has five million annual visitors and generates an annual turnover of €210m (NOK 2bn).
The centre offers construction merchandise, furniture, home and interior, sports and electronics, and has an annual rental income of €9.9m (NOK 94m). Major tenants include Elkjop, Skeidar, XXL, Biltema, Maxbo and Meny. The buyer is Joh Johannson Eiendom AS. The purchase price has not been disclosed.
"We have had a great interest over the years from investors, both Norwegian and international, who want to buy ALNA centre," said Gunnar Boyum, CEO of Aspelin Ramm. "The sale is part of normal portfolio adjustments of a fully-developed property and frees substantial capital for new projects. We are very proud of what we have achieved with ALNA centre. Our advisor, Pangea, went out into the market with the centre in March, signed exclusivity with the buyer in May, and a final signing is now taking place in June."
The centre benefits from a close proximity to the freight terminals at Alnabru and Alfaset, as well as a new residential development for 40,000 new homes.
According to Cushman & Wakefield, the mid-size retail market has active buyers and sellers, at the same time as there has been limited activity in the large cap market. From around 60 recorded retail transactions in 2017, and volume similar to 2016, the average transaction size has been NOK 240 million, with strong activity in both shopping centres and retail parks. Investors continue to monitor the impact of e-commerce, resulting in good demand for big-box properties in smaller cities that are assumed to be less affected by online sales.
The company said: “We believe investment activity involving larger transactions will pick up in in 2018, as owners will look to take profits from a strong capital market and completed developments. Rental prices are expected to remain stable in most of the sub-markets, but in prime locations, which have seen the sharpest increase, there is a risk of increased vacancy and further pressure on rentals.”
RPA Perspective The new owner has brought in LL Holding AS’ Lars Loseth, founder and former co-owner of the AMFI chain, to manage the centre in the future. Loseth also strongly believes in the centre’s continued development and growth.
"ALNA centre has a very strong position with an attractive location, strong tenants and solid sales. With around 1,100 parking spaces just outside Ring 3 and with the centre's mix of specialist trade, big box and retail shopping, it is especially suitable for merchandise categories that require a lot of space for handling and showcasing in the future," said Loseth.
Pangea Property Partners advised Aspelin Ramm, while BAHR served as the legal adviser. Pareto Securities served as an adviser for the transaction on the buyers’ side, with Wiersholm as the buyer’s legal adviser.
Norway's retail sales increased at the start of the second quarter, figures from Statistics Norway showed late last month.
The retail sales volume, excluding motor vehicles, climbed a seasonally adjusted 0.6% month-over-month in April, following a 0.4% rise in March.
On a yearly basis, the volume of retail sales advanced 1.8% in April. The value of retail sales registered an increase of 3.6%.