Norway and Oslo in particular, experience a tremendous growth in economy. Therefore there is a huge lack of new residential housing. We had a closer look at this booming market. Currently more than 1.000 families are on a waiting list, ready to buy whenever new dwellings are put up for sale. Due to an overheated market situation, prices are extremely high and match dwellings downtown Paris. This project consists of design, development and construction of 147 exclusive dwellings, situated on a sloped site overlooking Oslo downtown and the fjord. Other local developers in the market deliver a much lower quality that lack exclusivity, but after all sell at prices ranging from EUR 6.500 (USD 8.905) / m2 to EUR 9.400 (USD 12.878) / m2. Many well-off people seek exclusivity. This project delivers just that.
The project in question is a part of a new developed area for residential apartments in the suburb of Oslo. It is situated between Gardermoen (the new international airport) and Oslo, with travelling distance of 30 km to Gardermoen and less than 10 km to Oslo down town and only 5 minute drive to access highway E6 junction and a 15 minute drive to Oslo down town. It is situated on a hill slope with a fantastic view over Oslo down town and the fjord of Oslo, all in all a very attractive and exceptional location suited for an exclusive upgrade apartment complex attracting executives and very well off families. The location offers one of the very few possibilities for developing a large scale upgrade apartment complex on a green field in the Oslo area. The area is divided into 3 lots, owned by 3 different developers. The first one is currently being developed and more than 150 of the dwellings, equaling 50%, were sold within the first weeks they were up for sale and more than 1000 families have shown interest and put on hold on waiting lists. The green field area in question is the third to be developed on the location, and it is 21.680 m2 with a building possibility of all in all 18.401 m2 distributed on 147 apartments varying from approx. 90-150 m2 each.
The market is undersupplied and the demand for residential housing in the area is overheated. The demand is very high and the prices are similar to those at downtown Paris. Sales predictions are conservative and will most likely yield significantly higher. In Norway and Oslo in particular, business is booming and many new-rich people demand higher exclusivity than what is already available. The people behind the design and execution of this project are all Danish, to whom very high quality and the well renowned Danish design, is implicit. Thereby, the exclusivity demand from the market will be fully honored.
This is a complete investment is projected with US $191,800,000.00. The Project will have a value after completion of US $274,000,000.00. This is a 70 % LTV-Ratio. The project owner is looking for Combination of Equity /Debt Financing or an JV partner or Bond Financing.