Oslo’s third-largest retail center changes hands

Aspelin Ramm has sold ALNA Senter shopping center in Oslo to Joh Johannson Eiendom AS.

The purchase price has not been disclosed. The 750,000-square-foot center generates an annual turnover of €210 million ($243 million) and has 5 million annual visitors. Major tenants include Elkjop, Skeidar, XXL, Biltema, Maxbo and Meny.

Aspelin Ramm acquired the center at Alna in 1978 and has developed it from 1995 to become Oslo's third-largest shopping center.

The new owner has brought in LL Holding AS’ Lars Loseth, founder and former co-owner of the AMFI chain, to manage the center in the future.

Norway is currently one of the countries in the world with the highest density of shopping centers compared to inhabitants, according to Colliers International. This is due to several factors, such as the weather and Norwegians’ appetite for convenience being a few of several possible explanations.

The interest for retail property in Norway remained high in 2017. The total transaction turnover increased slightly compared with 2016. The end total

for the year was NOK 13.5 billion ($1.65 billion). These numbers were down considerably compared with 2015. This is in part due to circumstance. No large portfolios of retail properties swapped hands in 2017, as opposed to 2015 and, to a certain extent, 2016. Investment interest remains very strong, but supply is scarce. For 2018, Colliers International expects a few larger retail properties to be tested in the market regarding potential sales. Currently, many sellers in the market appear to be unwilling to sell unless a “crazy bid” comes in, which are at least halfway expected if one is to sell. It remains to be seen, however, if valuations based on sellers’ perception of “crazy” are to be met.