Target Information

CapMan Nordic Real Estate III fund has successfully secured a substantial lease agreement with Visma, covering a total area of 17,600 square meters at Sørkedalsveien 6 in Oslo. This agreement, which spans 15 years, facilitates a comprehensive renovation of the 18-storey office building originally constructed in 2001. The renovation is set to focus heavily on sustainability, with an expected completion date in late 2027. Once completed, the property is poised to serve as Visma’s global headquarters.

The renovation project commenced following CapMan's acquisition of the property in late 2022, anticipating the previous tenant's departure. Over the subsequent 18 months, an extensive design process has been conducted to enhance the building’s profile as a premium, full-service, and environmentally-friendly office destination.

Industry Overview

Oslo's commercial real estate sector has witnessed a significant transformation in recent years, particularly in the context of sustainability and modern workspace requirements. The demand for flexible and eco-efficient office environments is on the rise, driven by changing work habits and a heightened awareness of environmental impacts. Investors and developers are increasingly prioritizing sustainable construction practices in response to government regulations and societal expectations.

As of 2024, the overall office space market in Oslo has shown resilience, characterized by a robust interest in prime office locations like Majorstuen. The presence of major corporations such as Visma only underlines Oslo's appeal as a crucial business hub within the Nordic region. This transitioning landscape has prompted stakeholders to rethink office designs to enhance employee well-being while also boosting operational efficiency.

Furthermore, the Norwegian government’s commitment to achieving ambitious climate targets has spurred the adoption of green building practices across the industry. This commitment creates a favorable environment for renovations and new constructions that meet rigorous sustainability criteria, thereby enhancing property values and attractiveness in the marketplace.

The sustainable refurbishments are aligned with the guidelines of the EU Taxonomy, indicating a strong move toward sustainable development within the real estate sector in Norway. As demand for sustainable properties continues to escalate, projects like the one involving Visma are well-timed to capitalize on this trend.

Rationale Behind the Deal

The leasing agreement with Visma reflects CapMan’s strategy to enhance its portfolio through significant, long-term relationships with reputable tenants in prime locations. This deal not only secures stable cash flow projections over the next 15 years but also highlights CapMan's commitment to sustainable real estate development.

By targeting high-quality, environmentally responsible office spaces, CapMan is positioning itself to meet increasing market demands for sustainability. This aligns with global trends and the rising expectations of tenants who value environmentally sound infrastructures.

Investor Information

CapMan is recognized as a leading Nordic private asset manager with a diverse portfolio of €6.4 billion in assets under management. Known for its innovative value creation approach, CapMan has successfully transformed numerous companies and assets over the past three decades. Their commitment to sustainability is evident through established greenhouse gas reduction goals and a roadmap to achieve net-zero emissions by 2040.

Employing around 200 professionals across various Nordic cities, CapMan has maintained a significant presence in the unlisted market. Their investment strategies span real estate, infrastructure, natural capital, as well as minority and majority investments in various companies. This broad expertise positions CapMan well to take advantage of emerging opportunities in the commercial real estate sector.

View of Dealert

This lease agreement and the accompanying renovation project represent a strategic move by CapMan that aligns with the prevailing demand for sustainable office spaces. The decision to invest in the renovation of a landmark building underscores CapMan's foresight in recognizing the trend toward high-quality, environmentally friendly workplaces.

Moreover, securing Visma as a tenant adds significant credibility and potential stability to the investment. Visma's reputation as a leading provider of mission-critical business software further elevates this project, indicating that the building is set to host a prominent tenant with significant financial backing and strong market presence.

In conclusion, the investment appears to be sound, particularly considering the trajectory of Oslo's commercial real estate market and the increasing emphasis on sustainability. If the renovation is executed as planned and aligns with the ambitious energy efficiency goals set forth, this could very well become a benchmark project within the industry.

Lastly, the commitment to obtaining a BREEAM-NOR Excellent certification is an added advantage, as it reinforces the property’s appeal to environmentally conscious businesses. Given these factors, CapMan’s undertaking with Visma is indicative of a well-calibrated investment in the future of workspaces.

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