Madison International sells iconic Oslo office for NOK3.9bn

The New York-based real estate investment firm completes the sale of Norwegian oil and gas giant Statoil’s headquarters in a deal reflecting a cap rate of 5.4 percent.

Madison International Realty, the real estate investment firm, has sold an Oslo office in a NOK3.9 billion ($463 million; €419 million) in a deal which represents a 5.4 percent cap rate.

The New York-based company has completed the sale of the iconic headquarters of Norwegian oil and gas multinational Statoil to a club of local investors established by Norwegian investment bank Arctic Securities.

The 721,000 square foot complex, which was completed in 2012, is now one of the most recognizable building in Norwegian real estate.

The nine-story building, which is comprised of five aluminum-clad tubes arranged horizontally, is located in the Fornebu district in west Oslo. It is let to Statoil until 2027.

Although Madison has not previously heavily invested in Norway, it is understood the firm will remain focused on the Scandinavian country for the foreseeable future.

Madison and Arctic Securities were unavailable for comment.

In January, Madison bought a 25 percent stake in a Portugal-focused real estate fund managed by Spanish retail investment manager Sonae Sierra. The €300 million Sierra Portugal Fund, which contained nine assets, is focused on core-plus retail investments in Portugal.

While in December last year, the New York-based firm acquired a minority stake in St Stephen’s Green Shopping Centre in Dublin from Irish Life Assurance. The 34.5 percent stake was purchased for €61 million.

The seller was advised by Norwegian realtors Akershus Eiendom and property services firm JLL.