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NRP fund selling development property in the Stavanger region for 60 MNOK

- The councilman in Sandnes municipality has previously suggested that the municipality should buy parts of the plot for sports purposes, but it has not yet done so. Moreover, it is not certain that the municipality has the finances to carry out such a purchase, says adviser Jostein Gjerde in Colliers International.


The property has a land area of approx. 13.2 acres, and is located near a primary and lower secondary school, kindergarten, grocery store and sports facilities. The industrial area is now being transformed into a residential area, and during the spring it will probably be decided whether parts of the plot will be allocated for sports purposes.


- The property has a good cash flow nevertheless, and the buyer does not pay very much over the normal yield, therefore it is a relatively low risk investment, says Gjerde. Prinsens vei 5 is the former main warehouse / administration building for ASKO, and the main part of the building is now rented out to Extra Leker's online store.


Most of the area is leased until 2022. Leases provide an annual cash flow of approx. NOK 3,350,000 in 2018, and increases to approx. NOK 4.6 million until 2022. According to Colliers International, there is potential for further rental income, as approx. 1,000 square meters of office space is currently vacant.


- We are now running a parallel process of leasing and selling the property, says Gjerde. In the prospectus, potential buyers are especially encouraged to clarify future regulatory changes directly with Sandnes municipality. The sale of the property takes place through the disposal of all the shares in the single purpose company Prinsens vei 5 AS.



This article was originally featured in Estate Nyheter.