Tamar European Industrial Fund sells 5,243 sq m warehouse in Norway
Tamar European Industrial Fund has sold a 5,243 square metre warehouse in Fredrikstad, 89 kilometres south of Oslo.
The property, which was constructed in the 1980s, is let in its entirety to Andersen & Mørch on a lease which expires in December 2014.
The sale was completed at a gross price of GBP3.03m (NOK27.57m), reflecting a net initial yield of 9.65 per cent and was acquired by the tenant. The price reflects a 1.9 per cent discount to the September 2012 valuation.
Rob Brook, managing director of Tamar Financial Services, investment manager to TEIF, says: “The sale of this asset is a satisfactory outcome given the short-term nature of the lease, and we were able to circumvent the lack of liquidity in the market for short leased and secondary assets by securing the sale to the current tenant. The completion of this transaction means that there is now only one remaining asset to be sold in Norway and, following the recent sale of an asset in Tuusula, Finland, demonstrates the continued progress being made by the Fund in its strategy of exiting the Nordics to focus on its core markets.”