The transaction volume in Norway is so far this year 24 billion NOK. We are optimistic for this year’s remaining months and we expect that the high level of activity will continue. We believe in a transaction volume that may exceed 35 billion NOK this year.

Newsec in Norway has had a decent share of the transaction market so far. We have passed twelve sales with a total transaction volume north of 1 billion NOK. The most recent is a 11 600 sqm office building at Nesøyveien 4/6 in Oslo which is sold to the Varner Group at a 6.7 per cent. yield.

We have also sold four retail properties, including one on Orkidehøgda Industrial Park in Drammen and one in Nittedal, just outside of Oslo. These properties are let on long leases to Jysk and Maxbo, respectively. In addition to this, we have sold a number of properties for Braathen Property, a major player on the Norwegian property market.

We believe it is time for more buyers to come to the table. The yield spread is approaching historic levels, and there is a high probability of a yield compression in the near future. There are still long-term leases which are the most attractive, but we also believe that demand will increase for shorter contracts. Investors will eventually be willing to take risks.

Currently there is evidence that prime yield is around 6.0 per cent, but there are ongoing processes on lower levels. The next transaction in Oslo CBD will most likely see yield levels below this.