Docstoc

THE NORWEGIAN COMMERCIAL PROPERTY MARKET AUTUMN

Document Sample
THE NORWEGIAN COMMERCIAL PROPERTY MARKET AUTUMN Powered By Docstoc
					THE NORWEGIAN COMMERCIAL PROPERTY MARKET
AUTUMN 2007
SJØLYST ARKEN                              SJØLYST A RKEN
AKERSHUS EIENDOM IS HANDLING THE LEASING
OF 18,000 M² FOR KLAVENESS.
                                                                              IN DE X   PA GE 1




                                                                  I ND E X



Main points                         3

Macro Economics                     5
 About Norway                       5
 The Norwegian Economy              6
 Employment trends                  8
 New construction                   9

The Oslo office market             11
 The Oslo office market            11
 Rent levels                       12
 Office demand update              15
 Survey of tenants relocating      16
 Vacancy                           18
 Developments                      20
 Recent market activity            22
 Yield levels                      23

Sales transactions                 24
  The IPD property value index     26   This report is intended for general
                                        information and is based upon our own
Regional property markets          28   material which we believe to be reliable
 Recent regional market activity   30   or material supplied to us. Whilst every
                                        effort has been made to ensure its accu-
International office markets       32   racy and completeness, we cannot offer
                                        any guarantee that factual errors may
The retail market                  34   not have occurred. Akershus Eiendom
                                        takes no responsibility for any damages
The hotel market                   36   or loss incurred owing to the inaccuracy
                                        or incorrectness of this report. This report
The logistics market               38   was last edited on August 31, 2007.

The residential market             40   For further information please contact
                                        Akershus Eiendom AS. Comments, sug-
Definitions/Web-links              43   gestions or questions regarding the contents
                                        and presentation of this report are wel-
Akershus Eiendom AS                44   come at research@akershus-eiendom.no.
HENRIK IBSENS GATE 100                     HENRIK IB SENS GATE 100
AKERSHUS EIENDOM IS HANDLING THE LEASING
OF 17,000 M² FOR HÖEGH EIENDOM AS AND
LARS WINDFELDT.
                                                                                                                  M AIN PO IN T S   PA GE 3




                                                                                          M A I N P OI NT S



• Long-term Norwegian interest rates grew rapidly during the first half of the
  year, but fell back somewhat during July and August. Inflation is still low.

• National unemployment is currently at a record low of between 2 and 3%.
  Immigration makes it likely that employment will grow with more than 2%
  for this year, after a record-high 3.1% growth in 2006.

• Oslo office rents have experienced a strong first half of 2007. The 50% annual
  growth in prime office rents is remarkable. Other segments have not grown with
  comparable speed, but are likely to grow faster for the coming year.

• Our fourth annual survey of trends for relocating office tenants shows that a
  relocating tenant requires on average 22% more space than what is currently
  being occupied. This is slightly lower than last year, and means that total
  demand of office space is likely to grow at a slower pace for the coming year.

• Average Oslo office vacancy today stands at just below 5%, down from 6.5%
  in January, and 9.5% in January 2006. Large vacant space is now scarce,
  especially within the CBD or at the western side of the city. Vacancy is fore-
  casted to be below 4% by the end of the year and stay low at least until the
  end of 2009.

• New development of office buildings will stay low, and average about
  100,000 m2 a year for 2007 and 2008. For 2009, more space could be brought
  to the market, but probably not more than 150,000 m2.

• Low vacancy and rising office rents is also the case in Bergen, Trondheim
  and Stavanger. Especially Trondheim and Stavanger see strong growth and
  record high rent levels.

• The other Nordic office markets are improving, but lagging the Oslo market
  with about a year.
                                                                                      Note: This market report is intended to
• The hotel market is experiencing a strong growth in room rates for the first        provide an overview of the Norwegian
  time in four years.                                                                 property market. The report highlights
                                                                                      important trends and gives specific exam-
• Retail properties are being built at a record high rate, but the concentrated       ples of transactions in the leasing and
  owner/developer structure in this segment means they are not common in              investment markets, important new prop-
  the transaction market.                                                             erty developments, etc. Akershus Eiendom
                                                                                      may possess more detailed analysis and
• Logistics properties see increased demand, rising rents and stronger interest       data on some topics than is presented in
  from institutional investors.                                                       this report, and we would be happy to set
                                                                                      up individual meetings to provide more
• The growth in residential prices have slowed down during the first half of          detailed analysis and presentation of such
  2007, and even gone down somewhat during the summer. This is generally              material. Contact us at +47 22 41 48 00
  blamed on the rising interest rates. Construction activity is still growing, even   or research@akershus-eiendom.no for
  as the completion rate of new homes have stabilised since the end of 2006.          more information.
                                    AKERSELVA ATRIUM




                AKERSELVA ATRIUM
SOLD BY NCC PROPERTY DEVELOPMENT.
        AKERSHUS EIENDOM HANDLED
                 THE TRANSACTION.
                                                                                                                                     M AC R O E C O N O M I C S   PA GE 5




                                                                                                   A B OU T NOR WAY



    1         FACTS ABOUT NORWAY

 Key Economic Indicators                                                                             Annual change (%)
                                               Level (2006)        2003       2004     2005       2006 F     2007 F    2008 F             2009 F      2010 F
 Gross domestic product                           2 151 670          1.0        3.9      2.7          2.8        2.9      4.0                 2.2         2.6
 GDP mainland Norway                              1 563 243          1.3        4.4      4.5          4.6        4.1      3.4                 2.7         3.0
 Consumption in households etc.                     836 285          2.8        5.6      3.3          4.4        4.7      3.9                 3.6         3.8
 General government consumption                     418 203          1.7        1.5      1.8          3.3        3.2      3.2                 2.6         3.0
 Gross fixed investment                             399 655          0.2       10.2     11.2          7.4        7.3      4.4                 3.9         4.1
 Exports                                          1 002 488         -0.2        1.1      0.7          1.6        2.7      4.9                 2.0         2.6
 Crude oil and natural gas                                          -0.6       -0.5     -5.0         -6.5       -2.4      6.8                -0.4        -0.3
 Traditional goods                                                   2.9        3.4      5.2          5.9        6.7      3.9                 4.4         5.7
 Imports                                            609 675          1.4        8.8      8.6          8.2        6.8      4.4                 5.2         5.2
 Traditional goods                                                   5.2       10.9      8.2          9.7        8.1      3.9                 5.6         6.0

 Prices
 CPI                                                                    2.5     0.4       1.6         2.3          0.7         2.5            1.7          1.8
 CPI–ATE                                                                1.1     0.3       1.0         0.8          1.6         1.9            1.7          1.8
 Housing Prices                                                         1.6    10.1       7.9        12.9         14.1         7.2            3.0          2.7

 Employment
 Unemployment rate (% of work force)                     60          4.5        4.5      4.6          3.4          2.7         2.6            2.6          2.5
 Employed persons (percentage change)                 2 389         -1.0        0.5      1.0          3.1          2.5         1.2            1.1          1.0
 Participation rate (level)                                         73.8       73.6     73.8         74.3         75.0        75.1           75.1         75.2

 Public finance
 Current balance (bill. NOK)                                       195.9      221.6    300.8        359.2       311.3        315.6          293.6        291.2
 Current balance (per cent of GDP)                                  12.3       12.7     15.5         16.7        14.2         13.7           12.4         11.8

 Interest rates
 10-year Government Bond rate(%) (January 1)                            5.8     4.6       4.0            4.2       4.4
 Money market rate (level)                                              4.1     2.0       2.2            3.1       4.6         5.3            5.3          5.3


 General Facts
 Official name                                   Population                           Monetary unit                                   GDP per capita (2005)
 The Kingdom of Norway                           4.7 million                          Norwegian kroner, NOK                           NOK 457,802
                                                                                                                                      ( 57,392, $ 78,647)

 System of government                            Population density                   Exchange rates                                  Telephone prefix
 Constitutional monarchy                         12 per km²                            / NOK =7.9768                                  +47
                                                 Mainland: 15 per km²                 $ / NOK = 5.8210

 Head of state                                   Area                                 Internet domain
 King Harald V                                   385,155 km²                          .no
                                                 Mainland: 323,758 km²

 Central Government                              Time zone                            Largest cities – 1000 inhabitants
 Coalition Government: (Labour party             GMT + 1 hour                                                 City    Area
 Socalist Left Party, Centre Party)              (end October–end March)              Oslo                    547    1 450
                                                 GMT + 2 hour                         Bergen                  242      325
                                                 (end March–end October)              Stavanger               117      250
 Prime Minister                                                                       Trondheim               161      225
 Jens Stoltenberg, Labour party                                                       Kristiansand             78      150
Source: SSB, As of August 13 2007
PA GE 6   MA C RO EC ON OM ICS




          T HE NO R W EG IA N ECONOMY



          Macro                                                                                                   national growth, have resulted in a                                                                        enterprises was 20.9% at end-June,
          At the time of writing (20th August),                                                                   tremendous income increase in the                                                                          unchanged on May. The corre-
          stories of credit woes and tumbling                                                                     household and business sectors.                                                                            sponding figure for the money
          stock markets get the headlines on a                                                                    Moreover, low interest rates have                                                                          supply was 26.1% in June, down
          daily basis. However, the underlying                                                                    made consumers more inclined to                                                                            from 29.6% at end-May.
          economic situation is still strong in                                                                   spend and consume. However, as                                                                           • The Norwegian Krone has appre-
          Norway. As a result of high productiv-                                                                  interest rates have increased con-                                                                         ciated against the Euro and Dol-
          ity growth and an ample labour supply,                                                                  siderably since 2005, the consump-                                                                         lar recently on the expectation of
          the growth capacity in the economy                                                                      tion effect is now being reversed.                                                                         higher interest rates in Norway
          has been high. However, capacity                                                                        Private consumption is now fac-                                                                            than in the Euro and Dollar zones.
          utilisation has now reached a limit as a                                                                ing a declining growth the coming                                                                          Currently, compared to the US
          result of the strong activity growth.                                                                   years, unless the increase in wages                                                                        dollar, the Norwegian Krone is as
                                                                                                                  continues to offset the increasing                                                                         strong as it was in the early 90s.
          • Norwegian mainland GDP has                                                                            interest rates.                                                                                          • Since January 2004, the OSEBX
            grown roughly 4.5% annually over                                                                    • The year-on-year increase in the                                                                           at Oslo Stock Exchange has
            the past three years, see figure 3,                                                                   consumer price index (CPI) was                                                                             increased by approximately 164%,
            well above expected long-term                                                                         0.4% in July. Adjusted for tax                                                                             as to a merely 40% increase in
            growth (2.5–3.5%).                                                                                    changes and excluding energy prod-                                                                         the FTSE100 at London Stock
          • Improved terms of trade, low                                                                          ucts, the rate of increase in consumer                                                                     Exchange. Nonetheless, in the
            interest rates, growth in govern-                                                                     prices (CPI–ATE) was 1.4%.                                                                                 wake of the recent turbulence,
            ment spending and in petroleum                                                                      • Twelve-month growth in gross                                                                               more or less the entire upswing in
            investments, as well as high inter-                                                                   domestic debt of non-financial                                                                             2007 has vanished.



            2         INTEREST RATES, 2003–2007




            7%


            6%


            5%


            4%


            3%


            2%


            1%


            0%
                  Jan 2003

                             Mar 2003

                                        May 2003

                                                   Jul 2003

                                                              Sep 2003

                                                                         Nov 2003

                                                                                    Jan 2004

                                                                                               Mar 2004

                                                                                                          May 2004

                                                                                                                     Jul 2004

                                                                                                                                Sep 2004

                                                                                                                                           Nov 2004

                                                                                                                                                      Jan 2005

                                                                                                                                                                 Mar 2005

                                                                                                                                                                            May 2005

                                                                                                                                                                                       Jul 2005

                                                                                                                                                                                                  Sep 2005

                                                                                                                                                                                                             Nov 2005

                                                                                                                                                                                                                        Jan 2006

                                                                                                                                                                                                                                   Mar 2006

                                                                                                                                                                                                                                              May 2006

                                                                                                                                                                                                                                                         Jul 2006

                                                                                                                                                                                                                                                                    Sep 2006

                                                                                                                                                                                                                                                                               Nov 2006

                                                                                                                                                                                                                                                                                          Jan 2007

                                                                                                                                                                                                                                                                                                     Mar 2007

                                                                                                                                                                                                                                                                                                                May 2007

                                                                                                                                                                                                                                                                                                                           Jul 2007




                             NIBOR 3 months                                                    10 year Gov. Bond
                             SWAP 10 years                                                     Norges Bank, Sight deposit rate

                      Source: Statistics Norway, Central Bank of Norway
                                                                                                                                                                                                                                                                                                                                        M AC R O E C O N O M I C S                                                              PA GE 7




3        MAINLAND NORWEGIAN GDP GROWTH 1998–2010E                                                                                                                                                   4       CONSUMER PRICE INDEX 2004–2007




    5%                                                                                                                                                                                              3.0%

                                                                                                                                                                                                    2.5%

    4%                                                                                                                                                                                              2.0%

                                                                                                                                                                                                    1.5%

    3%                                                                                                                                                                                              1.0%

                                                                                                                                                                                                    0.5%

    2%                                                                                                                                                                                              0.0%

                                                                                                                                                                                                    -0.5%

    1%                                                                                                                                                                                              -1.0%

                                                                                                                                                                                                    -1.5%

    0%                                                                                                                                                                                              -2.0%
              1998

                          1999

                                        2000

                                                     2001

                                                                       2002

                                                                                         2003

                                                                                                       2004

                                                                                                                   2005

                                                                                                                               2006


                                                                                                                                                    2007E

                                                                                                                                                                  2008E

                                                                                                                                                                              2009E

                                                                                                                                                                                           2010E




                                                                                                                                                                                                              Jun 2004

                                                                                                                                                                                                                           Sep 2004

                                                                                                                                                                                                                                        Dec 2004

                                                                                                                                                                                                                                                        Mar 2005

                                                                                                                                                                                                                                                                              Jun 2006

                                                                                                                                                                                                                                                                                                Sep 2005

                                                                                                                                                                                                                                                                                                                Dec 2005

                                                                                                                                                                                                                                                                                                                             Mar 2006

                                                                                                                                                                                                                                                                                                                                          Jun 2006

                                                                                                                                                                                                                                                                                                                                                          Sep 2006

                                                                                                                                                                                                                                                                                                                                                                                Dec 2006

                                                                                                                                                                                                                                                                                                                                                                                                  Mar 2007

                                                                                                                                                                                                                                                                                                                                                                                                                  Jul 2007
         Actual GDP change                                                Forecasted GDP change                                                                                                         CPI                           CPI–ATE (ex taxes and energy)


         Source: Statistics Norway                                                                                                                                                                          Source: Statistics Norway




5        MAIN INDICES OSLO AND LONDON 2004–2007 (2004=100)                                                                                                                                          6       CURRENCY EXCHANGE RATES 2004–2007




350                                                                                                                                                                                                 9.0%

300                                                                                                                                                                                                 8.5%

                                                                                                                                                                                                    8.0%
250
                                                                                                                                                                                                    7.5%
200
                                                                                                                                                                                                    7.0%
150
                                                                                                                                                                                                    6.5%
100
                                                                                                                                                                                                    6.0%

    50                                                                                                                                                                                              5.5%

     0                                                                                                                                                                                              5.0%
               Jan 2004

                          Apr 2004

                                     Jul 2004

                                                Oct 2004

                                                            Jan 2005

                                                                              Apr 2005

                                                                                            Jul 2005

                                                                                                        Oct 2005

                                                                                                                   Jan 2006

                                                                                                                              Apr 2006

                                                                                                                                         Jul 2006

                                                                                                                                                       Oct 2006

                                                                                                                                                                   Jan 2007

                                                                                                                                                                              Apr 2007

                                                                                                                                                                                         Jul 2007




                                                                                                                                                                                                                Jan 2004

                                                                                                                                                                                                                           Apr 2004

                                                                                                                                                                                                                                      Jul 2004

                                                                                                                                                                                                                                                   Oct 2004

                                                                                                                                                                                                                                                                   Jan 2005

                                                                                                                                                                                                                                                                                     Apr 2005

                                                                                                                                                                                                                                                                                                     Jul 2005

                                                                                                                                                                                                                                                                                                                  Oct 2005

                                                                                                                                                                                                                                                                                                                             Jan 2006

                                                                                                                                                                                                                                                                                                                                        Apr 2006

                                                                                                                                                                                                                                                                                                                                                     Jul 2006

                                                                                                                                                                                                                                                                                                                                                                     Oct 2006

                                                                                                                                                                                                                                                                                                                                                                                       Jan 2007

                                                                                                                                                                                                                                                                                                                                                                                                       Apr 2007

                                                                                                                                                                                                                                                                                                                                                                                                                     Jul 2007




         Oslo Stock Exchange (OSEBX)                                                                               London Stock Exchange (FTSE)                                                         NOK/EUR                                         NOK/USD


         Source: Oslo and London Stock Exchanges                                                                                                                                                            Source: Central Bank of Norway
PA GE 8   MA C RO EC ON OMICS




          E MPL O Y M EN T TR END S



          Status                                                                              In July, seasonally adjusted regis-                                                                                               persons in the previous three-month
          The employment growth forecast                                                      tered unemployment stood at 1.9%                                                                                                  period (January–March), while the
          for the upcoming years show a strong                                                of the labour force, unchanged from                                                                                               labour force expanded by 15, 000
          increase, and the predictions for 2007                                              the previous month. As measured                                                                                                   persons in the same period.
          is a 2.5% growth. Though not at the                                                 by Statistics Norway’s labour force
          same pace as in 2006 and 2007, the                                                  survey (LFS), seasonally adjusted                                                                                                 The total workforce increased with
          preliminary predictions indicates a                                                 unemployment was 2.5% in May                                                                                                      42,000 people from the first quarter
          further employment growth of 1.2% in                                                (three-month period April–June).                                                                                                  2006 to the first quarter of 2007,
          2008, 1.1% in 2009 and 1.0% in 2010.                                                Employment increased by 19 000                                                                                                    which is equal to the population


                                                                                              2 500                                                                                                                                                                                                                                          6%

           7       TOTAL EMPLOYMENT, NORWAY
                                                                                              2 400                                                                                                                                                                                                                                          5%

            Total employment 1988-2007 and                                                    2 300                                                                                                                                                                                                                                          4%
            forecast until 2010.
                                                                                                                                                                                                 2.9%
                                                                                                                                                                                                                                                                                           3.1%
            The graph shows employment growth,                                                2 200                                                                                                                                                                                                                                          3%
                                                                                                                                                                                                           2.7%                                                                                      2.5%
            which was at its strongest during 2006.                                                                                                                    2.0%
            Official SSB (Statistics Norway)                                                  2 100                                                                1.9%                                                                                                                                                                      2%
            long-term forecasts have been revised                                                                                                                          1.7%
                                                                                                                                                                                                                                                                                                               1.2%
            upwards lately.                                                                                                                                                                                                                                                                                       1.1%
                                                                                              2 000                                                                                                                  0.9%                                                        1.0%                                1.0%                    1%
                                                                                                                                                         0.7%                                                            0.6%    0.4%
                                                                                                                                                                                                                             0.4%                                      0.5%
                   Total employed Norway, thousands                                           1 900                                                                                                                                                                                                                                          0%
                                                                       Employees, thousands




                   Total employed, SSB forecast                                                                                                -0.3%
                                                                                              1 800                                                                                                                                                                                                                                          -1%
                                                                                                                          -0.9%
                   National employment change %                                                                               -1.0%                                                                                                                          -1.0%




                                                                                                                                                                                                                                                                                                                                                   Change, %
                                                                                              1 700                                                                                                                                                                                                                                          -2%
                   Employment change %, SSB forecast
                                                                                                             -3.1%
                                                                                              1 600                                                                                                                                                                                                                                          -3%
                   Source: Statistics Norway
                                                                                                      1988
                                                                                                                1989
                                                                                                                           1990
                                                                                                                                     1991
                                                                                                                                               1992
                                                                                                                                                         1993
                                                                                                                                                                   1994
                                                                                                                                                                             1995
                                                                                                                                                                                       1996
                                                                                                                                                                                                 1997
                                                                                                                                                                                                           1998
                                                                                                                                                                                                                     1999
                                                                                                                                                                                                                               2000
                                                                                                                                                                                                                                         2001
                                                                                                                                                                                                                                                   2002
                                                                                                                                                                                                                                                             2003
                                                                                                                                                                                                                                                                       2004
                                                                                                                                                                                                                                                                                 2005
                                                                                                                                                                                                                                                                                           2006
                                                                                                                                                                                                                                                                                                     2007 E
                                                                                                                                                                                                                                                                                                               2008 E
                                                                                                                                                                                                                                                                                                                         2009 E
                                                                                                                                                                                                                                                                                                                                   2010 E




                                                                                              6.0 %
                   UNEMPLOYMENT, OSLO AND
           8       NATIONWIDE, 1996-2007                                                      5.5%

                                                                                              5.0%

            Norwegian unemployment, while still low                                           4.5%
            compared to other European nations, has
            gone to record low levels. However, recent                                        4.0%
            report suggest that the unemployment
            share has leveled out during the summer.                                          3.5%

                                                                                              3.0%

                                                                                              2.5%

                                                                                              2.0%

                   Difference between Oslo                                                    1.5%
                   and the country average
                                                                       Unemployment




                                                                                              1.0%
                   Oslo (NAV)
                                                                                              0.5%
                   Country average (NAV)
                                                                                              0.0%
                   Source: Norwegian Labour and Welfare Agency (NAV)
                                                                                                       Jul 96
                                                                                                                 Jan 97
                                                                                                                            Jul 97
                                                                                                                                      Jan 98
                                                                                                                                                Jul 98
                                                                                                                                                          Jan 99
                                                                                                                                                                    Jul 99
                                                                                                                                                                              Jan 00
                                                                                                                                                                                        Jul 00
                                                                                                                                                                                                  Jan 01
                                                                                                                                                                                                            Jul 01
                                                                                                                                                                                                                      Jan 02
                                                                                                                                                                                                                                Jul 02
                                                                                                                                                                                                                                          Jan 03
                                                                                                                                                                                                                                                    Jul 03
                                                                                                                                                                                                                                                              Jan 04
                                                                                                                                                                                                                                                                        Jul 04
                                                                                                                                                                                                                                                                                  Jan 05
                                                                                                                                                                                                                                                                                            Jul 05
                                                                                                                                                                                                                                                                                                      Jan 06
                                                                                                                                                                                                                                                                                                                Jun 06
                                                                                                                                                                                                                                                                                                                          Jan 07
                                                                                                                                                                                                                                                                                                                                    Jun 07
                                                                                                                                                                                                                                                                         M AC R O E C O N O M I C S                                          PA GE 9




growth in the age group 15–74 years,        relatively speaking, with a 10.6%                                                                                                                         labour leads to wage levels rising rap-
in the same period. Moreover the age        increase, while business-related                                                                                                                          idly, as it is harder to attract qualified
group 67–74 years saw an employ-            services saw an increase of approxi-                                                                                                                      personnel. Furthermore, there is the
ment boost, as the total workforce          mately 9.1%.                                                                                                                                              overall threat of not finding enough
percentage went from 6.9% to 10.9%.                                                                                                                                                                   competent and skilled staff to fill
This was primarily led by more              Assumptions / Implications                                                                                                                                all vacant positions necessary for a
part-time positions in addition to          With the continuous fast-paced                                                                                                                            company’s day-to-day operation. The
pensions. The construction indus-           employment growth, many indus-                                                                                                                            construction industry alongside with
try witnessed the steepest growth           tries are experiencing a rough time.                                                                                                                      the oil- and offshore companies are in
in employment during the period,            The ever-increasing competition for                                                                                                                       particular affected by this.




NE W C O N STR UC TION

                                                                                      12 000 000
         NEW CONSTRUCTION. ALL OF
  9      NORWAY, 2000–2007
                                                                                      10 000 000

  The graph shows the total construction
  activity in Norway for residential and
  non-residential use during the previous                                              8 000 000
  12 months.
                                             Sum of all floor space, last 12 months




                                                                                       6 000 000



                                                                                       4 000 000


         New space permitted (m2)
                                                                                       2 000 000
         Construction started (m2)
         New space completed (m2)
                                                                                              0
         Source: Statistics Norway
                                                                                                   2000Q4
                                                                                                            2001Q1
                                                                                                                     2001Q2
                                                                                                                              2001Q3
                                                                                                                                       2001Q4
                                                                                                                                                2002Q1
                                                                                                                                                         2002Q2
                                                                                                                                                                  2002Q3
                                                                                                                                                                           2002Q4
                                                                                                                                                                                    2003Q1
                                                                                                                                                                                             2003Q2
                                                                                                                                                                                                      2003Q3
                                                                                                                                                                                                               2003Q4
                                                                                                                                                                                                                        2004Q1
                                                                                                                                                                                                                                 2004Q2
                                                                                                                                                                                                                                          2004Q3
                                                                                                                                                                                                                                                   2004Q4
                                                                                                                                                                                                                                                            2005Q1
                                                                                                                                                                                                                                                                     2005Q2
                                                                                                                                                                                                                                                                              2005Q3
                                                                                                                                                                                                                                                                                       2005Q4
                                                                                                                                                                                                                                                                                                2006Q1
                                                                                                                                                                                                                                                                                                         2006Q2
                                                                                                                                                                                                                                                                                                                  2006Q3
                                                                                                                                                                                                                                                                                                                           2006Q4
                                                                                                                                                                                                                                                                                                                                    2007Q1




The construction boom is continuing,        this indicator is typically lagging the                                                                                                                   the building costs have increased.
and the volume of started projects          former by 1–3 years and will keep                                                                                                                         Statistics Norway reported that
during the last 12 months is now            growing for 2007 and 2008.                                                                                                                                material costs have increased by
40% higher than the volume in 2003,                                                                                                                                                                   11.1 per cent during the last
and the growth has been stable up to        The record-high activity has                                                                                                                              12 months up to July, and the total
1Q 2007. Completed volume has not           resulted in shortage of all kind of                                                                                                                       construction costs for housing is up
shown the same kind of growth, but          resources for construction work, and                                                                                                                      7.8 per cent.
PA GE 1 0   MA C RO EC ON OMICS




      KJØRBO OFFICE PARK                        KJØRB O OFFICE PAR K
      AKERSHUS EIENDOM HANDLED THE LEASING OF
      26,000 M² FOR ENTRA EIENDOM.
                                                                                                                    T H E O S LO O F F IC E M AR K E T   PA GE 1 1




                                                         T HE OS L O OF F I CE MA R K E T



 10     OSLO OFFICE STOCK


                                                                                                                             Oslo office areas
                                                                        Sinsen                   Oslo outer east
                                                          Nydalen
                                                                        Storo
        Oslo outer west
                                                                        Kjelsås
                                               Ullevål                                                                                50,000 m2
                                                                        Grefsen

                                                                                                     Alna-Ulven
                                                           Inner city              Økern                                              250,000 m2
                                                           north
                                   Majorstua


                                                                                                                                      500,000 m2
                                  Inner city west                                         Helsfyr-Bryn
                      Skøyen
                                                    CBD                     Inner city east

  Lysaker
                                                                                              Ryen


                                                                                                                          The map shows Oslo
                                               xxxxxxxxx xxxxx                                                            divided in 23 office
                                                                                                                          areas with circles
  Fornebu                                                                                        Oslo outer south         representing the
                                                                                                                          stock of office in
                                                                                                                          each area.




The Oslo office building stock (not            in the map. Office zones outside the                  logistical purposes, with many distribu-
including the neighbouring munici-             Central Business District are gener-                  tion centres for retail and transportation
palities Asker and Bærum except                ally found along the outer ring road                  businesses. Eastern and southern areas
Lysaker) today stands at around 8.5            from Lysaker through Nydalen and                      consist of residential areas with varying
million m2. Of this, roughly 3 million         Helsfyr to Bryn. Single office build-                 degrees of density.
m2 are situated within the city centre,        ings and smaller office areas exist
from Solli Plass in the west to Bjør-          outside and between these areas.
vika in the east, marked in the map as
six areas/circles in the middle.               The area between the CBD and the
                                               outer ring road (in the map, seen as
Oslo generally has a great deal of             the Inner city East, North and West) is
urban sprawl, the built-up area                mostly in use for residential, university
covers a lot of land compared to its           and retail purposes. The west of Oslo
population size. Most of the office            contains high-end residential areas with
building stock is concentrated in              low density. The north-eastern corner
densely built areas, and this is visible       of Oslo is the core area in Norway for
PA GE 1 2   T H E OSLO OF F ICE MAR K ET




            RE NT L EVEL S



              11          OSLO OFFICE RENTS, JUNE 2007




                                                                                                                                                         General           Top standard
                                                                                                  Sinsen
                                                                                    Nydalen                                                              high standard     and new space
                                                                                                  Storo                   Oslo outer east
                           Oslo outer west
                                                                                                  Kjelsås                                                3 200             4 300
                                                                      Ullevål
                                                                                                  Grefsen
                                                                                                                                                         2 000             2 500
                                                                                                                               Alna-Ulven
                                                                                     Inner city              Økern                                       1 700             2 100
                                                                                     north
                                                          Majorstua
                                                                                                                                                         1 500             1 900

                                                          Inner city west                                           Helsfyr-Bryn
                                                                            CBD                                                                          1 200             1 600
                                               Skøyen

                                                                                                      Inner city east                                    1 000             1 300

                Lysaker
                                                                                                                        Ryen




                                                                                                                                                  The map shows office rent levels for
                  Fornebu                                                                                                  Oslo outer south       units larger than 500 m2 in different
                                                                                                                                                  parts of Oslo as of August 2007.
            Source: Akershus Eiendom




              12          YEAR-END RENT LEVELS


                                                                 1996       1997        1998         1999       2000       2001       2002       2003     2004     2005      2006 2007 1H
             Prime                                               1 750      1 900       2 500        2 500      2 700      2 800      2 100      1 950    1 950    2 100     2 700  3 500
             High std CBD                                        1 400      1 600       1 900        1 900      2 000      2 100      1 800      1 500    1 550    1 700     1 900  2 000
             Newer space CBD                                     1 150      1 350       1 600        1 800      1 800      2 100      1 900      1 750    1 700    1 890     2 000  2 200
             Good std CBD                                        1 050      1 250       1 400        1 500      1 550      1 700      1 650      1 300    1 250    1 300     1 400  1 600
             High std west fringe                                1 200      1 450       1 700        1 700      1 750      1 750      1 450      1 300    1 300    1 400     1 750  1 900
             High std east fringe                                1 000      1 250       1 300        1 400      1 400      1 450      1 250      1 200    1 100    1 150     1 300  1 350
             Older, ineffective space                              400        550         700          700        700        800        600        500      500      600       800    900
             Source: Akershus Eiendom/Dagens Næringsliv



            The rental growth in the prime office                           The other segments of the market are                              more important than ever. Vacancy
            segment of Oslo first half of 2007 has                          also finally seeing strong growth, with                           will stay low for the coming year, and
            been the strongest ever, with a growth                          two segments exceeding 20% growth                                 rents should keep rising.
            of 50% over the last year.                                      over the last year.
                                                                                                                                              The difference between the Prime
            The rest of the CBD has not yet expe-                           Assumptions/implications                                          area and the rest of the city, especially
            rienced strong growth as a whole. The                           The strong growth in the Prime seg-                               the CBD, has never been higher as
            highest rent levels outside the Prime                           ment is explained mainly by the low                               long as the current statistics have been
            area have been observed in the north-                           vacancy (at 2% for the last year) and                             recorded. We expect the difference to
            ern and western parts of the CBD, as                            the tenants’ willingness to pay higher                            shrink during the coming two years.
            noted in the list on page 12. Several                           rents to be able to stay in the area. As
            lease transactions above the 2,000                              competition for staff is intense, loca-                           Table 14 shows our forecast for the
            NOK/m2 level have been signed.                                  tion and quality of the office space is                           different office areas.
                                                                                                                                                                                                                                             T H E O S LO O F F IC E M AR K E T                                                   PA GE 1 3




                                                                                        4 000
            OSLO OFFICE RENTS 1986-2007
13          (NOMINAL NOK)
                                                                                        3 500

  The figure shows rent levels based on
                                                                                        3 000
  signed contracts.

                                                                                        2 500


            Prime                                                                       2 000
            High std CBD
            Newer space CBD                                                             1 500
            Good std CBD
            High std west fringe                                                        1 000
                                                                        NOK/m²/year




            High std east fringe
            Older, ineffective space                                                      500


            Source: Dagens Næringsliv/Akershus Eiendom
                                                                                            0
                                                                                                      1986 H1
                                                                                                                1987 H1
                                                                                                                          1988 H1
                                                                                                                                    1989 H1
                                                                                                                                              1990 H1
                                                                                                                                                        1991 H1
                                                                                                                                                                  1992 H1
                                                                                                                                                                            1993 H1
                                                                                                                                                                                      1994 H1
                                                                                                                                                                                                1995 H1
                                                                                                                                                                                                          1996 H1
                                                                                                                                                                                                                    1997 H1
                                                                                                                                                                                                                              1998 H1
                                                                                                                                                                                                                                        1999 H1
                                                                                                                                                                                                                                                  2000 H1
                                                                                                                                                                                                                                                            2001 H1
                                                                                                                                                                                                                                                                      2002 H1
                                                                                                                                                                                                                                                                                2003 H1
                                                                                                                                                                                                                                                                                          2004 H1
                                                                                                                                                                                                                                                                                                    2005 H1
                                                                                                                                                                                                                                                                                                              2006 H1
                                                                                                                                                                                                                                                                                                                        2007 H1
14          RENT LEVEL FORECAST


Area                   High standard rent level,         Change since                 Rent forecast             Comment
                                    June 2007              June 2006                   to june 2008

Prime + high                                   3 500           +50%                          +25%               Prime rent has exploded during the last year and exceeded all expectations. Our forecast
standard CBD                                                                                                    is that further growth will be slower in the coming two years. This is mainly based on the
                                                                                                                announced refurbishment of more than 60,000 m2 of prime office space.

New buildings                                  2 100           +15%                          +15%               Rental growth potential is limited in the short term, as several developers have large land
from CBD east to                                                                                                plots for new development ready, and will compete for the tenants. They also face com-
Skøyen                                                                                                          petition from refurbishment of older buildings.

Rest of CBD/                                   2 200           +15%                          +30%               Rents have started to rise faster, as alternatives both in the Prime area and at Skøyen are
Downtown Oslo                                                                                                   scarce. Readily available space of more than 5,000 m2 is now scarce and will remain so
                                                                                                                for several years.

Skøyen                                         2 000           +25%                          +15%               Rents rose quickly during the last year, and Skøyen is considered by many tenants to be
                                                                                                                as good as the CBD. There will, however, be up to 40,000 m2 of office space vacated or
                                                                                                                constructed during the coming two years, which could limit further rental growth.

Nydalen                                        1 600           +15%                          +25%               Nydalen is the highest-priced area in north/east Oslo, and should benefit from a high
                                                                                                                proportion of good-quality buildings. It should be noted that the growth indicated is from
                                                                                                                a relatively low level.

Lysaker /                                      1 900           +20%                          +20%               Low vacancy and high activity in the industries with strong presence in these areas have
Fornebu                                                                                                         created higher rental growth than expected. This should continue, as supply of new
                                                                                                                space is low.

Helsfyr/Bryn                                   1 500           +10%                          +20%               Rents should rise faster from the start of 2008, as vacancy comes down to levels below
                                                                                                                5%.

Other areas                                    1 100            +5%                          +20%               Rents have so far not changed much, but general high vacancy will create higher
                                                                                                                demand for space in other areas of the city.
PA GE 1 4   T H E OSLO OF F ICE MAR K ET




            The three graphs in figure 15–17
            show the vacancy and the high
                                                                                                                                    15            PRIME AREA: VACANCY VS. RENT CHANGE

            standard rent levels for three cho-
            sen geographical segments: the
                                                                                                                                              20.0%                                                                                   4 000
            Prime area, the western office areas
            (Skøyen, Lysaker and Fornebu) and                                                                                                 17.5%                                                                                   3 500

            the eastern office areas (Nydalen,                                                                                                15.0%                                                                                   3 000
            Økern/Alna and Helsfyr/Bryn) for
                                                                                                                                              12.5%                                                                                   2 500
            the period 2004–2007. The connec-
            tions are visible: office rents do not                                                                                            10.0%                                                                                   2 000

            start to grow before vacancy goes                                                                                                 7.5%                                                                                    1 500
            below 5–10%. When vacancy goes
                                                                                                                                              5.0%                                                                                    1 000
            below 5%, strong rental growth can




                                                                                                                                                                                                                                              Rent level
                                                                                                                                    Vacancy




                                                                                                                                              2.5%                                                                                    500
            be expected. The eastern side has
            not yet reached these levels, but this                                                                                            0.0%                                                                                    0
                                                                                                                                                         2004-1H


                                                                                                                                                                    2004-2H


                                                                                                                                                                               2005-1H


                                                                                                                                                                                          2005-2H


                                                                                                                                                                                                    2006-1H


                                                                                                                                                                                                                  2006-2H


                                                                                                                                                                                                                            2007-1H
            is likely to happen soon as vacancy
            is falling rapidly in the market as a
            whole (see also pages 18–19).
                                                                                                                                                  Rent level, high standard, right axis                       Vacancy, left axis


                                                                                                                                                  Source: Dagens Næringsliv/Akershus Eiendom




             16            WESTERN AREAS: VACANCY VS. RENT CHANGE                                                                   17            EASTERN AREAS: VACANCY VS. RENT CHANGE




                       20.0%                                                                                   3 200                          20.0%                                                                                   2 400

                       17.5%                                                                                   2 800                          17.5%                                                                                   2 100

                       15.0%                                                                                   2 400                          15.0%                                                                                   1 800

                       12.5%                                                                                   2 000                          12.5%                                                                                   1 500

                       10.0%                                                                                   1 600                          10.0%                                                                                   1 200

                       7.5%                                                                                    1 200                          7.5%                                                                                    900

                       5.0%                                                                                    800                            5.0%                                                                                    600
                                                                                                                       Rent level




                                                                                                                                                                                                                                              Rent level
             Vacancy




                                                                                                                                    Vacancy




                       2.5%                                                                                    400                            2.5%                                                                                    300

                       0.0%                                                                                    0                              0.0%                                                                                    0
                                  2004-1H


                                             2004-2H


                                                        2005-1H


                                                                   2005-2H


                                                                             2006-1H


                                                                                           2006-2H


                                                                                                     2007-1H




                                                                                                                                                         2004-1H


                                                                                                                                                                    2004-2H


                                                                                                                                                                               2005-1H


                                                                                                                                                                                          2005-2H


                                                                                                                                                                                                    2006-1H


                                                                                                                                                                                                                  2006-2H


                                                                                                                                                                                                                            2007-1H




                           Rent level, high standard, right axis                       Vacancy, left axis                                         Rent level, high standard, right axis                       Vacancy, left axis


                           Source: Dagens Næringsliv/Akershus Eiendom                                                                             Source: Dagens Næringsliv/Akershus Eiendom
                                                                                                       T H E O S LO O F F IC E M AR K E T   PA GE 1 5




O FF I CE DEM A N D UP D AT E



                                                            TOTAL DEMAND FOR OSLO OFFICE SPACE




Total demand for                                                        EMPLOYEES                          OFFICE SPACE
office space depends           OFFICE RELATED                           PER ACTIVITY=                      PER EMPLOYEE=
                         1                                  E      2                             E    3




                                                                                                                                      E
                               BUSINESS ACTIVITY                        THE INVERSE OF                     THE INVERSE OF
on three factors as                                                     WORKER EFFICIENCY                  SPACE EFFICIENCY
the figure indicates.
Development of these
factors influences the   The economic growth is still              Since the early 1990s, the pro-    Our observation is that most
total demand in dif-     strong, and the optimism in the           ductivity growth has been high     office users have settled into a
ferent directions.       market has not deteriorated. As           and relatively stable. The GDP     pattern of relatively little space
                         Norwegian unemployment is                 growth the last three years        per employee, which is still
                         essentially zero, companies are           have been well above trend,        relatively generous compared
                         attempting to attract the most            which has led to strong growth     to other European cities. Some
                         qualified staff from competing             for many companies for the         companies afford themselves
                         companies by sign-on fees and             last couple of years. However,     larger space, especially for so-
                         finder’s fees for finding new               many have been reluctant to        cial zones and meeting rooms,
                         employees.                                hire new employees until they      but so far this is not a major
                                                                   were certain the boom would        trend among large users.
                         Most industries see increased             last. Moreover, others again
                         hiring on all levels. In august,          have underestimated the esca-      In times of strong economic
                         FAST Search & Transfer, the               lating work demands and have       growth, users tend to run out
                         IT company, announced its                 been behind on the recruitment     of space and not be able to get
                         plans to lay off 148 workers,             process. These factors have        added space in time. Thus, em-
                         but this is seen as an isolated           put a strain on the companies’     ployees are crowded together
                         incident.                                 employees, but efficiency has       for a period of time until the
                                                                   been brought to high levels.       extra space is acquired. Anoth-
                         The growing number of im-                 As the pool of applicants in       er effect is that most users on
                         migrants is currently the main            the general population shrinks,    the move will order extra space
                         source of people to sustain               it is likely that less competent   for future growth. This means
                         the near-future employment                workers are hired and produc-      that individual companies’ use
                         growth. In the first quarter 2007          tivity per employee will fall.     of space per individual goes up
                         Norway saw a net immigration                                                 and down, and there is often
                         increase of 7,500, up 42% from            We have also observed that         no clear trend in the market
                         last year. Oslo received 23% of           companies invest a lot of time     as a whole. When the growth
                         all immigrants coming to Nor-             and money in retaining or          slows down, the trend will
                         way in the first quarter of 2007.          finding new employees, which        move towards larger space per
                         Besides, the urbanization trend           is another indication that the     employee as the growth plans
                         resulted in Oslo witnessing a             boom times place some stress       turn out to be too ambitious;
                         net increase in domestic migra-           on efficiency. We therefore         we are, however, not yet at this
                         tion close to 19%, according to           change our indicator arrow to      point in the business cycle.
                         2007 Q1 numbers. Altogether,              point upwards, which means
                         Oslo’s share of Norway’s total            more employees are needed to
                         net immigration in Q1 2007                perform any given volume of
                         was more than 28.7%.                      business activity.
PA GE 1 6   T H E OSLO OF F ICE MAR K ET




            SUR V EY O F TEN A N T S R E L OCAT I NG



            Survey introduction and details            space than the larger tenants. This   • Figure 22 contains the summary
            • Akershus Eiendom has executed            is a reversed trend compared to         of the tenants’ plans for employee
              its fourth annual survey of compa-       last year’s results.                    “density” within the new space. It
              nies or government/city agencies                                                 is still a high priority to use office
              currently relocating. The respon-      • In Figure 19, most of the specific      space more efficiently. However,
              dents have either signed a new           responses are plotted to show           we see that more than 54% of the
              lease contract during the last year,     individual office space changes.        tenants want to keep their space
              or are in the process of finding         The x-axis shows current office         per employee ratio. We inter-
              new offices.                             space and the y-axis shows future       pret this to mean that many have
                                                       office size, and the triangle dots      reached their maximum level of
            • This survey is designed to map           represent the companies surveyed        effectiveness but are in need of
              the demand side of the office            in 2007. Thus, the shrinking ten-       new offices due to general growth.
              market, and offer conclusions            ants end up below the 45° line and
              about current trends in the mar-         the growing companies are above.      • Overall, the survey results show
              ket. The survey offers a forecast        The other dots represent single         that the future growth in demand
              about actual new absorption in the       office users moving in 2004, 2005       is likely to be slightly lower than
              coming 6–18 months, as very few          and 2006, and as we can see from        this year’s, but the growth is still at
              of these tenants have moved into         the graph; the 2007 survey shows        a high level. The results from the
              their new space yet.                     results not very different from         survey’s four years of existence
                                                       those of last year, as they show        show that the changes in the New
            • In 2007, 33 tenants surveyed are         only individual results below           Tenant Demand Index is in line
              in the process of acquiring 159,000      5,000 m2.                               with general employment growth
              m2 of mainly office space in Oslo.                                               in Norway for the years 2004 to
              We have only surveyed tenants          • Figure 20 through 22 show sum-          2007.
              with a requirement for more than         maries of individual answers, i.e.
              1,000 m2. The survey should cover        not weighted by size. The results
              about 30–40% of the market for           for previous years are shown for
              office space of this size and above.     comparison.

            Assumptions/Implications                 • Figure 20 shows the shares of
            • Figure 18 shows the Tenant New           respondents moving into smaller,
              Demand Index, which is the total         bigger, or equal size office space.    Survey limitations
              relative change in office demand         There is a strong trend towards        There are quite a few demand drivers
              for this sample of companies, from       larger space, which is unsurprising    that are not fully covered by this sur-
              the old location to the new. This        given the almost universal hiring      vey. Some of the uncovered areas are
              year, relocating tenants on average      trend seen in figure 21. Only 6%       on the negative side. We do not catch
              need 22% more space, compared            of this year’s respondents plan to     all results from mergers, and we do
              to 27% in 2006, 10% in 2005, and         move to a smaller space.               not map how some tenants sublease
              only 3.5% from our survey in 2004.                                              parts of their offices instead of mov-
                                                     • In Figure 21 we have surveyed          ing. However, we also exclude the
               The smaller tenants in the sur-         whether or not the tenants are         smallest tenants, which often display
               vey (moving from space less than        currently recruiting or laying off     stronger movements than larger ten-
               5,000 m2) on average need more          employees. The graph expresses the     ants in relative terms.
               new space as a share of their old       continuous trend of recruitment.
                                                                                                                                                  T H E O S LO O F F IC E M AR K E T   PA GE 1 7




                    SUM OF ALL TENANTS MOVING: CHANGE IN DEMAND
18                  FOR SPACE, COMPARED TO OLD LOCATION




30%


25%


20%


15%


10%


 5%


 0%
                      Tenants in               Tenants in       Tenants in          Tenants in
                       survey of                survey of        survey of           survey of
                         2004                     2005             2006                2007

                    Source: Akershus Eiendom



                    INDIVIDUAL SIZE OF PRESENT LOCATION
19                  VERSUS NEW LOCATION                                                              20    MOVING TO BIGGER OR SMALLER SPACE?


                              5 000                                                                  80%
 New location




                                                                                                     70%

                              4 000
                                                                                                     60%

                                                                                                     50%
                              3 000
                                                                                                     40%

                              2 000                                                                  30%

                                                                                                     20%
                              1 000
                                                                                                     10%

                                                                                                     0%
 Present location                   0                                                                       Larger office space       Same amount of space     Less office space
                                         0        1 000     2 000     3 000        4 000     5 000

                Single tenant moving, 2004            Single tenant moving, 2006
                Single tenant moving, 2005            Single tenant moving, 2007                             2004            2005       2006      2007

                    Source: Akershus Eiendom                                                               Source: Akershus Eiendom




21                  INCREASING OR REDUCING STAFF?                                                    22    CHANGE IN SPACE PER EMPLOYEE


100%                                                                                                 70%

90%
                                                                                                     60%
80%

70%                                                                                                  50%

60%
                                                                                                     40%
50%
                                                                                                     30%
40%

30%                                                                                                  20%
20%
                                                                                                     10%
10%

 0%                                                                                                   0%
                        Reducing staff                  No change             Increasing staff                Less space per               No change           More space per
                                                                                                                 employee                                        employee

                      2004              2005        2006       2007                                          2004            2005       2006      2007

                    Source: Akershus Eiendom                                                               Source: Akershus Eiendom
PA GE 1 8   T H E OSLO OF F ICE MAR K ET




            VACAN C Y



              23          OSLO OFFICE VACANCY, JULY 2007




                                                                                      Sinsen
                                                                        Nydalen                               Oslo outer east
                                                                                      Storo                                                10–15%
                         Oslo outer west
                                                                                      Kjelsås
                                                            Ullevål
                                                                                      Grefsen                                              5–10%

                                                                                                                   Alna-Ulven
                                                                                                                                           < 5%
                                                                         Inner city              Økern
                                                                         north
                                                Majorstua


                                                Inner city west                                         Helsfyr-Bryn
                                       Skøyen

                                                            CBD                           Inner city east

               Lysaker
                                                                                                            Ryen




                Fornebu                                                                                        Oslo outer south      This map shows vacancy in the
                                                                                                                                     various office areas of Oslo as of
                                                                                                                                     June 2007.
            Source: Akershus Eiendom




            Oslo office vacancy has continued its                     pace in the areas where it is still                         reflects the weak supply of new
            declining trend, at a faster pace than                    above 7–8%. This means vacancy                              space for the coming three years; if
            last year. As of July, total vacancy                      should be fairly uniform across the                         office rents continue their trend, a
            stands at 5.0%. It is the lowest level                    city by the end of the year, and rent                       higher volume is likely for 2010 and
            since 2000 and in line with the fore-                     levels for the formerly high-vacancy                        beyond.
            cast from our previous report, which                      areas from Nydalen to Helsfyr–Bryn
            predicted year-end vacancy at 3.5%.                       should climb faster.                                        A moderately slower economic devel-
                                                                                                                                  opment, as might be feared after this
            The areas with the lowest vacancy,                        High costs for construction and refur-                      summer’s turmoil in the stock mar-
            notably the Prime parts of the CBD                        bishments will influence the choices                        kets, will not change this forecast sig-
            and the Lysaker and Skøyen areas                          of the landlords in times of low                            nificantly. This is due to the already
            on the western side, were already                         vacancy; costs could be pushed onto                         limited long-term employment
            at low levels at the start of the year;                   the tenants or avoided, at least until                      forecasts (1% a year for 2008–2010),
            therefore, the rest of the CBD and the                    rents go higher. Low-quality space                          and the fact that the main difference
            eastern side have seen solid reduc-                       which would stay vacant in previous                         compared to the 1990s is the long
            tions in vacancy levels. Only three                       years should be easier let.                                 period of low supply of new space. If
            areas are now above 10% vacancy, and                                                                                  employment growth becomes stron-
            the expectations for higher rents have                    Our vacancy forecast in figure 24                           ger than the SSB(Statistics Norway)
            taken hold for owners everywhere.                         is based on supply and demand                               forecast, vacancy could go as low as
                                                                      information and assumptions, and                            2%, with a strong impact on rents.
            The vacancy will continue down-                           suggests a two-to-three-year period
            wards for the coming year at a sharp                      with vacancy below 4%. The graph
                                                                                                                                                    T H E O S LO O F F IC E M AR K E T   PA GE 1 9




                                                                                        1 000 000
                   OSLO OFFICE VACANCY,
      24           2002-2011E                                                            900 000
                                                                                                                   11%    11%



                                                                                         800 000
       The columns show how vacancy changes
       due to new construction and new demand.                                           700 000                            9.5%
       The forecasts for new demand and supply
       are based on knowledge about specific                                                               7%
                                                                                         600 000
       office developments and the official
       estimates for employment growth.                                                                                              6.5%
                                                                                         500 000                                                                            4.5%

        Actual    Forecast
                                                                                         400 000
                             Vacancy level by the start of the year
                                                                                         300 000                                                          3%           3.5%
                                                                                                     3.5%                                    3.5%
                             Change in demand of office
                                                                      m2 office space




                                                                                         200 000
                             space (absorbed space)
                             Net new office space added                                  100 000
                             to the market
                                                                                               0
                   Source: Akershus Eiendom, various developers
                                                                                                    2002    2003   2004   2005     2006   2007E   2008E    2009E    2010E     2011E




                                                                                                                   VULKAN, MA RIDA LSVEIEN 17




   VULKAN, MARIDALSVEIEN 17
AKERSHUS EIENDOM IS HANDLING
  THE LEASING OF 15,000 M² FOR
                 VULKAN EIENDOM AS.
PA GE 2 0   T H E OSLO OF F ICE MAR K ET




            DE V E L O PM EN TS



              25          OSLO OFFICE DEVELOPMENT MAP, AUTUMN 2007


                                       kollen                                                                                  Årvoll
                                                                                                                                          Linnerud
                                                                                                                                                                       Office buildings completed in 2007
            oksen
                                                                      3




                                                Ris
                                                                 ng




                                                                                                                                                                       Office buildings to be completed in 2008
                                                               Ri




                    Røa                                                                                           Sinsen
                                                                          V.Aker
                                                                                                                                Økern
                                                                                                                                  e
                                                                                                                                  er
                                                                                                                                Økern
                                                              Oslo                          Ring
                                                                                                   2
                                                                                                                                                 Alna
                                                                                                                                                   n
                                                                                                                                                  ln
                                                                                                                                                 Alna                  Office buildings to be completed in 2009–10


                                                                                                                                                                       Land plot available for office development
                                                Smestad
                                                               Majorstua
                                                                                                                     Tøyen
                                                                                                                                           Ø.Aker

                            Ullern
                                          Skøyen
                                                            Frogner
                                                                                                                                                              Opp
                                                                             et kgl.slott
                                                                            Det kgl.s
                                                                             e      s                   slo
                                                                                                       Oslo S
                                                                                                                                           Bryn
                                                                                                                                              n
                                                                                                                                             yn
                                                                                                                                                                           = 10,000 m2

                                                                                    Akershus
                                                                                      slott                                                       Manglerud

                                                                                                                Ekeberg                                                        = 50,000 m2
                                                                                                                                          Ryen
                      y
                     Lysaker
                                                   Bygdøy

                               Fornebu                                                                                                                         Øs
                                                                                                          Sjursøya
                                                                                                                             Bekkelaget                                           = 100,000 m2
                                                                                                                                             Lambertseter


            Source: Akershus Eiendom




            Status                                                                     with rising construction costs contrib-                                 Since our previous report, few new
            Office projects are scarce compared                                        ute to lack of new projects.                                            development projects have been
            to the 90s, and annual completed                                                                                                                   reported to become available for
            volumes have been at low levels since                                      The Oslo office market has a lot of                                     users in 2008 or 2009.
            2001.                                                                      available land plots for new office
                                                                                       development. This is likely to rep-                                     Assumptions/implications
            Construction of homes, hotels, shop-                                       resent a longer-term cap on the rent                                    The total forecasted volume for the
            ping centres and public buildings,                                         levels, but this is not an issue at the                                 coming two years has not increased
            along with infrastructure projects, are                                    moment, where several areas have                                        by much, and we expect close to
            at record high levels, as illustrated by                                   rent levels too low for developers                                      150,000 m2 of new buildings for 2008
            other chapters in this report. High                                        to consider starting speculative                                        and a similar volume for 2009. This is
            margins in other sectors combined                                          construction.                                                           reflected in the graph on page 19.
                                                                                                                                                                                                                      T H E O S LO O F F IC E M AR K E T                                                   PA GE 2 1




                                                                350 000

 26      OSLO OFFICE CONSTRUCTION
         2001-2007
                                                                300 000
         Annualized 4 quarter moving average

  Office construction in Oslo has continued
  downwards since 2003. Recently, however,                      250 000
  the volume of new permitted space has
  seen visible growth.
                                                                200 000


                                                                150 000


                                                                100 000
         Completed Greater Oslo
         Started Greater Oslo
                                                  m² per year




         Permitted Greater Oslo                                  50 000


                                                                     0
         Source: Statistics Norway
                                                                          2001Q1
                                                                                   2001Q2
                                                                                            2001Q3
                                                                                                     2001Q4
                                                                                                              2002Q1
                                                                                                                       2002Q2
                                                                                                                                2002Q3
                                                                                                                                         2002Q4
                                                                                                                                                  2003Q1
                                                                                                                                                           2003Q2
                                                                                                                                                                    2003Q3
                                                                                                                                                                             2003Q4
                                                                                                                                                                                      2004Q1
                                                                                                                                                                                               2004Q2
                                                                                                                                                                                                        2004Q3
                                                                                                                                                                                                                 2004Q4
                                                                                                                                                                                                                          2005Q1
                                                                                                                                                                                                                                   2005Q2
                                                                                                                                                                                                                                            2005Q3
                                                                                                                                                                                                                                                     2005Q4
                                                                                                                                                                                                                                                              2006Q1
                                                                                                                                                                                                                                                                       2006Q2
                                                                                                                                                                                                                                                                                2006Q3
                                                                                                                                                                                                                                                                                         2006Q4
                                                                                                                                                                                                                                                                                                  2007Q1
A rising number of B/C-quality build-          Rising rents will make more develop-                                                                                    the fall. We expect more projects to
ings in the CBD will be refurbished            ers focus on office construction, but                                                                                   come online at Fornebu, Lysaker,
either speculatively or for new users.         rents are still low in many of the areas                                                                                the eastern CBD, and Nydalen. The
We currently see a “re-shuffling” of           where land plots are ready for office                                                                                   Helsfyr/Bryn areas still have rents too
smaller or price-sensitive tenants out         development. Speculative construc-                                                                                      low to expect substantial speculative
of such buildings and into smaller             tion is, however, happening in CBD                                                                                      construction, but new projects built
vacant space or out of the CBD.                locations and western parts of the                                                                                      for tenants are likely to appear.
Examples are Haakon VII’s gate 5,              city, where vacancy has been low for
Cort Adelers gate 30, and Henrik               at least a year.
Ibsens gate 100, all within the west
CBD/Prime area and comprising a                Further projects available from 2010
total of 40,000 m2.                            will probably be announced during
PA GE 2 2   T H E OSLO OF F IC E MAR K ET




            RE CE NT M AR K ET ACT I V I T Y



             27       OSLO OFFICE LEASING


            Property/location                 Tenant                    Owner                            Floor space, m2          Rent, NOK/m2          Area           Lease duration
            Haakon VII’s gt 6                 Arctic Securities         City Finansiering / Kim Erla               1 600                  4 200         Prime
            Dronning Mauds gt 10              Brækhus Dege              Vestre Vika DA                             2 000                  2 700         Prime                 10 years
            Henrik Ibsens gt 100              Western Bulk              Høegh Eiendom and Lars Windfeldt           1 000                  3 500         CBD west             10 years
            Grev Wedels plass 9               Christiania Securities    Forward deal                                 900                  2 075         CBD East             10 years
            Kirkegata 15                      ROM eiendom               Kirkegaten 15 DA                           3 500                  1 865         CBD East             10 years
            Apotekergata 8                    Fagforbundet Oslo         Entra Eiendom AS                           2 300                  1 600         CBD North              5 years
            Akersgata 51                      Schibsted                 Entra Eiendom AS                           1 700                  1 900         CBD North              5 years
            Akersgata 51                      Vinmonopolet              Entra Eiendom AS                           4 870                  2 250         CBD North            10 years
            St. Olavs gate 23                 Universitetet i Oslo      Oslo Næringseiendom                        2 800                  1 775         CDB North              5 years
            Fridtjov Nansens vei 17–19        Oslo Politikammer         Furuholmeninvest                           2 300                  1 915         Majorstuen           10 years
            Hoffsveien 70                     Aker Yards                Linstow ASA                                1 100                  2 050         Skøyen               3,5 years
            Kjørbo, Sandvika                  Asplan Viak               Entra Eiendom AS                           2 500                  1 700         Outer West             5 years
            Kjørbo, Sandvika                  Technip Norge AS          Entra Eiendom AS                           7 300                  1 650         Outer West             7 years
            Helsfyr Atrium, Strømsveien 22    AF Gruppen                Sektor Helsfyr Atrium AS                  14 000                  1 750         Helsfyr              10 years
            Fredrik Selmers vei 2             Skosenteret               Nordea Liv Norge AS                        4 000                  1 350         Helsfyr                8 years




             28       SALES


            Property/location                        Floor space m²     Price (MNOK)    Rent (NOK/m²)    Net initial yield     Seller                       Buyer
            Haakon VII’s gate 6                               6 665               390           2 326              3.75%       Storebrand                   Kim Erla
            Fridtof Nansens plass 5                           4 682               265           1 815              3.05%       Fridtof Nansens plass 5 DA   Oslo Høyre
            Nesbruveien 73-75                                15 900               101             535              8.00%       Trygve Brudevold             Gullik Hansen/Kjell Madland
            Arnstein Arnebergs vei 12                         4 500               177           2 489              5.75%       Neas                         Pareto
            Kabelgaten 40                                    15 359               212           1 008              6.29%       Økern Park ANS               Storebrand
            Apotekergata 10                                   6 640               334           2 636              5.24%       Schibsted Eiendom As         API Fond I
            Parts of Aker Brygge                             31 736             1 740           2 596              4.45%       DnB NOR ASA                  Norwegian Property ASA
            Akerselva Atrium                                 17 000               587                              5.20%       NCC                          Vital Forsikring AS
            KLP - building Bjørvika                          25 000             1200             N/A                  N/A      Oslo S Utvikling             KLP Eiendom
            Portfolio of 4 office buildings                  69 881             1 149           1183               6.70%       Oslo Areal ASA               Nordisk Areal




             29       NEW OFFICE PROJECTS 2007–2010


            Property/building                         Floor space m 2                    Area                                Completion                     Developer
            Bjørvika “Barcode” PwC building                   15 000                     CBD East                                 2007                      Oslo S Utvikling
            Tjuvholmen Allé 2                                  3 000                     CBD Prime                                2007                      Tjuvholmen KS/Selvaag
            Drammensveien 154                                  7 500                     Skøyen                                   2007                      Fram Management
            Drammensveien 155                                 12 000                     Skøyen                                   2008                      Stor-Oslo Prosjekt
            Aker Hus (New HQ for Aker Kværner)                35 000                     Fornebu                                  2008                      Aker ASA
            Lysaker Torg 45                                   16 500                     Lysaker                                  2008                      NCC Property Dvl.
            Schweigaards gate 45                              25 000                     CBD East                                 2008                      ROM Eiendom
            Tjuvholmen Allé 1                                 12 000                     CBD Prime                                2008                      Tjuvholmen KS/Selvaag
            Sogn Arena, Klaus Torgårds vei 3                  12 000                     Ullevål                                  2008                      Bertel O. Steen eiendom
            Karenslyst Allé 54–58                             12 000                     Skøyen                                   2009                      ICA Eiendom
            Bjørvika “Barcode” KLP building                   25 000                     CBD East                                 2009                      Oslo S Utvikling
            Akerselva Atrium                                  15 000                     CBD Northeast                            2009                      NCC Property Dvl.
            Martin Linges vei 15 (IT Fornebu)                 25 000                     Fornebu                                  2009                      IT Fornebu Eiendom
            Helsfyr Atrium, Strømsveien 122                   33 000                     Helsfyr                                  2010                      Sektor Eiendomsutvikling
                                                                                                                                           T H E O S LO O F F IC E M AR K E T           PA GE 2 3




YI E LD L EVEL S


                                                                            7.5%
         INTEREST RATES AND
 30      TRANSACTION YIELDS 2002-2007                                       7.0%
                                                                                     1
                                                                                                   2
                                                                                                       5
                                                                                               3
                                                                            6.5%                           6
  The curve indicates the 10-year                                                                      4
  government bond rate. The numbered
  triangles represent time and sales yield for                              6.0%
                                                                                                                    7           10
  large Oslo office transactions since
  december 2002. Note the recent                                            5.5%                                        8
  transactions with negative yield gaps.                                                                                         11
                                                                                                                            9         12        13                   21        22
                                                                                                                                                          15
                                                                            5.0%
                                                                                                                                                          17
                                                                                                                                                                                   23
                                                                            4.5%
                                                    Guest night % change




       Transactions
                                                                            4.0%
                                                                                                                                                     14         18
       SWAP 10 years                                                                                                                                                   19
                                                                                                                                                          16
                                                                            3.5%
       10 year Gov. Bond

                                                                            3.0%                                                                                          20
         Source: Akershus Eiendom
                                                                                   Dec 2002
                                                                                   Feb 2003
                                                                                   Apr 2003
                                                                                   Jun 2003
                                                                                   Aug 2003
                                                                                   Oct 2003
                                                                                   Dec 2003
                                                                                   Feb 2004
                                                                                   Apr 2004
                                                                                   Jun 2004
                                                                                   Aug 2004
                                                                                   Oct 2004
                                                                                   Dec 2004
                                                                                   Feb 2005
                                                                                   Apr 2005
                                                                                   Jun 2005
                                                                                   Aug 2005
                                                                                   Oct 2005
                                                                                   Dec 2005
                                                                                   Feb 2006
                                                                                   Apr 2006
                                                                                   Jun 2006
                                                                                   Aug 2006
                                                                                   Oct 2006
                                                                                   Dec 2006
                                                                                   Feb 2007
                                                                                   Apr 2007
                                                                                   Jun 2007
                                                                                   Aug 2007
The low yield deals continued into
                                                  31                        TRANSACTIONS 2002–2007
2007 with a few deals in the CBD
area below 4% and several deals                  No.                       Property                             Yield       Price MNOK                             Point of sale
below 5%. The low yields seen in                 1                         Dronning Mauds gate 1-3             7.20%                 440                       December 2002
                                                 2                         Gullhaugveien 1-3                   7.10%                 163                             July 2003
these transactions are driven by the             3                         Forskningsparken                    6.70%                 500                       September 2003
high expectations for future rent                4                         PST-bldg. Nydalen                   6.45%                 312                       November 2003
increases, as opposed to the low-                5                         Lørenveien 68                       6.80%                 177                       December 2003
                                                 6                         Sommerrogata 1                      6.50%                 300                            June 2004
yield deals seen two to five years ago           7                         Drammensveien 60                    5.90%                 307                       November 2004
where falling interest rates were the            8                         C.J.Hambros plass 1                 5.60%               1 070                       December 2004
                                                 9                         Brynsalleen 6                       5.27%                 453                         February 2005
main driver. As interest rates have              10                        Drammensveien 134                   5.90%               ~600                              May 2005
increased throughout the first half of           11                        Forskningsparken                    5.48%                 656                            June 2005
                                                 12                        PwC bldg. Bjørvika                  5.25%                 570                       December 2005
2007, we have not seen sales of long-
                                                 13                        Visma bldg. Bjørvika                5.25%                 920                         February 2006
lease properties, which hold the yield           14                        Haakon VII’s gate 1                 3.79%                 820                             April 2006
records for the years 2003 to 2005.              15                        Aker Hus, Fornebu                   5.00%             ~1 500                          October 2006
                                                 16                        Haakon VII’s gate 5                 3.70%                 500                         October 2006
                                                 17                        Drammensveien 144                   4.90%                 367                         October 2006
The significant decrease in levels               18                        Haakon VII’s gate 2                 3.72%                 625                       December 2006
                                                 19                        Haakon VII’s gate 6                 3.75%                 390                         February 2007
for sales yields, even though the
                                                 20                        Fridtjof Nansens plass 5            3.05%                 265                           March 2007
10-year swap rates increased by 79               21                        Apotekergata 10                     5.20%                 334                           March 2007
basis points from January 1 to June              22                        Akerselva Atrium                    5.20%                 587                            June 2007
                                                 23                        Parts of Aker Brygge                4.65%               1 740                             July 2007
30, is therefore the result of a change
in what kind of properties are sold,             As running rent levels are catching up                             values will increase in the second half
as well as a shift in investors’ accep-          with market rents, net initial yields                              of the year is still in the balance.
tance of low return on equity.                   could increase, and whether property
PA GE 2 4   SA LES T RA N SA C TIONS




            SALE S TR A N S AC TIO NS

            Investment activity continued at a                    against the other sectors, and is back                groups in the first half of the year.
            high level in the first half 2007, even               to 2/3 of the total investment volume                 The life insurance companies are
            though it did not reach 2006 levels.                  as it has been the last 5 years except                entering the market again and win-
            We have registered transactions with                  in 2006. Also, the other property sec-                ning several deals after several years
            a total value of 20.5 bNOK in the first               tors saw reduced activity, with the                   of low activity. Foreign investors have
            6 months, down from 30.5 bNOK the                     interest-sensitive logistics sector hit               become notably more active through-
            first 6 months last year. The creation                by the increased cost of debt, whereas                out the year, and are expected to be
            of the company Norwegian Property                     the lower activity in the retail sec-                 active on several deals at the start of
            ASA last spring is the main explana-                  tor could be explained by the rapid                   second half of the year. In particular,
            tion of the high levels last year.                    retail sales growth, driving up pricing               London-based European funds and
                                                                  expectations to higher levels than                    German funds are more active.
            As illustrated in figure 34, invest-                  anticipated by less informed outside                  Several larger office buildings in
            ment activity for office properties in                investors and their lenders.                          Oslo changed hands, including DnB
            Oslo was the lowest since the autumn                                                                        NOR’s headquarters at Aker Brygge;
            of 2004. Even though the activity                     Listed property companies and prop-                   a new building to be constructed for
            declined, offices gained territory                    erty funds are the most active buyer                  KLP in Bjørvika; Norway Post’s dis-
                                                                                 60 000
                     TRANSACTION VOLUME OF
            32       COMMERCIAL PROPERTIES
                                                                                 50 000

              Only deals larger than NOK 50 million are
              included in the graph.
                                                                                 40 000



                                                                                 30 000



                                                                                 20 000
                     Hotels
                     Retail properties
                     Logistics/industrial properties                             10 000
                                                                      Mill NOK




                     Office buildings

                                                                                      0
                     Source: Akershus Eiendom
                                                                                              2002          2003      2004         2005         2006       2007 YTD


                                                                 70 000                                                70 000
                     SELLERS AND BUYERS BY
            33       SEGMENT AND VOLUME 2001–2007                                   Sellers (deals > 50 MNOK)                       Buyers (deals > 50 MNOK)
                                                                 60 000                                                60 000


                     Listed Property companies                   50 000                                                50 000
                     Unknown
                     Foreign Investors                           40 000                                                40 000
                     Property Funds
                     Others                                      30 000                                                30 000
                     Shipping/Private investors

                     Insurance companies                         20 000                                                20 000

                     Closed ended funds
                     Industrial/Retail companies                 10 000                                                10 000
                                                          MNOK




                     Unlisted Property Companies
                                                                      0                                                      0
                     Source: Akershus Eiendom
                                                                                 2001 2002 2003 2004 2005 2006 2007              2001 2002 2003 2004 2005 2006 2007
                                                                                                                  S ALE S T R AN S AC T IO N S      PA GE 2 5




                                                   18 000

 34      TRANSACTION VOLUMES PER
         PROPERTY SEGMENT                          16 000
         (deals > 50 MNOK)
                                                   14 000
  Transactions for all segments are lower
  than the previous three quarters.
                                                   12 000


                                                   10 000


                                                    8 000


                                                    6 000
         Hotel
         Logistics                                  4 000

         Retail
                                                    2 000
         Office

                                                         0
         Source: Akershus Eiendom
                                                              2002-1 2002-2 2003-1 2003-2 2004-1 2004-2 2005-1 2005-2 2006-1 2006-2 2007-1




         BUYERS BY SEGMENT,
35       2006–2007                                                    2006                                             2007

         (deals > 50 MNOK)
                                                                 7%                                                 5%



         Foreign investors
                                                                                      32 %
         Property funds                                                                                                                      34 %
                                                 25 %                                                27 %
         Public sector/others
         Shipping/Private investors
         Insurance companies
         Closed ended funds
                                                    5%                                                  6%
                                                                                     7%
         Industrial/Retail companies                                                                                                    7%
                                                         6%                     1%
         Unlisted property companies                                                                                               2%
                                                                                                                12 %          7%
                                                                      17 %
         Listed property companies


         Source: Akershus Eiendom




tribution centre at Biskop Gunnerius        use and 100,000 m2 for commercial                Low-yield deals continued to hap-
gate 14B “Lavblokka”, Akerselva             use. Another new development com-                pen, with the most prominent exam-
Atrium (Chr. Krohgs gate 16) and            pany set up by Pareto Private Equity             ples being the under-rented Haakon
Haakon VII’s gate 6. The activity in        has acquired 280,000 m2 of mainly                VII’s gate 6 at 3.75%, and the DnB
the market is high and we see all kinds     residential projects in Tønsberg and             NOR HQ at Aker Brygge at 4.45%.
of deals, and the trend is that inves-      Lørenskog. Other major transactions              In mid-August the news broke on
tors are willing to take more and more      were the acquisition of 134,000 m2               Norwegian Property ASA voluntary
market risk.                                development property outside of                  offer on Norgani Hotels. If the offer is
                                            Stavanger also by SPD, and the the               successful, the company will become
In the first half of 2007, there has        Arcus production facility at Økern, by           the largest property company in the
been increased interest in develop-         a JV of Höegh and Bunde.                         Nordic region.
ment projects, and several of the
largest transactions involved projects,     The trend with forward deals con-                “PlainVanilla” financial deals with
including the acquisition by the newly      tinues, the largest in 1H 2007 were              long term leases with AAA tenants
initiated development company               Akerselva Atrium and the KLP build-              on e.g. office or logistics buildings in
Scandinavian Property Development           ing in Bjørvika. Both buildings were             remote locations have been limited
(SPD) of a large land plot at the old       acquired by life insurance companies.            this year. In areas with limited rent
airport at Fornebu, on the Western          These properties are mostly leased               increase potential, these kinds of prop-
fringe of Oslo. The plot is planned for     and the rest of the leasing risk is lim-         erties might have declined in value.
400,000 m2 floor space for residential      ited by a vendor guarantee.
PA GE 2 6   SA LES T RA N SA C TIONS




            T HE I P D P R O PER TY VA L U E I ND E X



            International Property Databank                 represents 44% of market value of the           to the next, and are calculated on a
            (IPD) has measured the performance              holdings of institutional investors and         time-weighted basis – in full compli-
            of Norwegian property portfolios since          property companies.                             ance with the Global Investment Per-
            2000. The IPD Norwegian property                                                                formance Standards (GIPS).
            index 2006 captures the performance             IPD Indices measure ungeared total
            of 497 properties with a capital value          returns to direct property investments
            of 89 bNOK. IPD estimates that this             held from one open market valuation




                                                                                  25

             36      RETURN OF INVESTMENT:
                     PERFORMANCE BY SECTOR

                                                                                  20
              Ungeared property investments averaged a
              return on investment of between 16 and
              19% for all segments in 2006.
                                                                                  15




                                                                                  10


                     All Norwegian commercial property
                                                            Total return % p.a.




                     Other commercial                                             5
                     Office
                     Retail
                                                                                  0
                     Source: IPD
                                                                                       2000   2001   2002      2003      2004     2005     2006




                                                                                  25

             37      RETURN OF INVESTMENT:
                     PERFORMANCE BY OFFICE AREAS

                                                                                  20
              Oslo CBD outperformed the other office
              areas with total returns of 22.6 % in 2006.


                                                                                  15




                     Rest of Norway                                               10

                     Other main cities
                     Oslo east and south
                                                            Total return % p.a.




                     Oslo west and north                                          5
                     Oslo centre
                     Oslo CBD
                                                                                  0
                     Source: IPD
                                                                                       2000   2001   2002      2003      2004     2005     2006
                                                                                                                                                                                   S ALE S T R AN S AC T IO N S   PA GE 2 7




38           RETURN ON INVESTMENT PER YEAR


                                                                         Total return             Income return               Capital growth              Annualized total return           Total return index
                                                                               1 year                    1 year                        1 year      3 years        5 years         7 years          1999 = 100
For direct property, by source
All Property                                                                        17.6                           6.7                  10.2          14.4           11.5           11.6                215.2
Retail                                                                              16.4                           6.7                   9.1          15.6           14.6           13.8                247.5
Office                                                                              18.2                           6.7                  10.8          13.8           10.4           10.7                203.4
Other Commercial                                                                    17.6                           6.8                  10.1          14.3           11.5           12.7                 231
For other asset classes
Equities                                                                            32.4                                                              37.1           21.4           12.8                232.1
Bonds                                                                                2.2                                                               3.0            5.5            5.7                114.4
Inflation rate HICP                                                                  0.9                                                               1.7            1.7            1.9                147.6
Property Equities                                                                   64.6                                                              44.6           34.8           22.3                409.6
Sources: IPD, Oslo Børs Benchmark Index, Oslo Børs “Statsobligasjonsind. 3.00”, Statistics Norway, Oslo Børs OSE4040 Real Estate.




                                                                                                                                                  FREDRIK SELMERS VEI 2




                                                                                                                                                                   FREDRIK SELMERS VEI 2
                                                                                                                                    AKERSHUS EIENDOM IS HANDLING THE LEASING
                                                                                                                                                OF 3.900 M² FOR NORDEA LIV NORGE AS,
                                                                                                                                       THROUGH ABERDEEN PROPERTY INVESTORS.
PA GE 2 8   REGION A L P ROP ERTY MAR KETS




            RE G I O N AL P R O PER T Y MA R K E T S



            Bergen                                                  The office vacancy in the Stavanger              tive locations has been started, with
            The vacancy rate in the Bergen office                   region is now at 1,5%–2%. Due to the             signed leases for above 2,200 NOK
            market continues to fall, and is cur-                   scarcity of good standard offices in             per square meter.
            rently at 6.2%. The average rent level                  prime locations, the rental market is
            for new or refurbished office space                     currently an owners’ market. Rents               The largest commercial property
            is around 1,550–1,600 NOK/sq.m. in                      are still rising on both office and retail       sales transaction in Trondheim
            prime CBD, and ca 1,375–1,400 NOK/                      space, as well as for warehouse and              occurred in the first half of 2007
            sq.m. in the fringes. We predict the                    logistics/ production areas.                     through the sale of the office complex
            moderate growth to continue at more                                                                      Pirsenteret AS. At a price in excess
            or less the same pace, as there are                     The most visible imbalance in the                of 1 billion NOK, this represented a
            several office developments currently                   market consists of buildings with                yield just below 5.0%. The effective
            under construction way that will stabi-                 combined office and logistics/pro-               long-term yield is currently stable at
            lize the market in the near future.                     duction facilities where demand is               between 5.75% and 6.5% for attrac-
                                                                    much higher than available space.                tive objects.
            The demand for office space and                         Large office areas are hard to find in
            development properties remains                          the region, and in the CBD area it               During the next three years, the com-
            good and stable, yet we do expect a                     is almost impossible to find vacant              pletion of new projects is expected to
            certain increase in rate of return, due                 retail space. Older buildings that are           supply a total of 60.000 square meters
            to raising long-term interest rates.                    in need of renovation, as well as pro-           of new office space. Verftstomta, the
                                                                    jected new buildings are the hardest             next stage of Pirsenteret, Teknobyen
            Stavanger                                               to rent out these days.                          and Brattørkaia are the largest among
            The commercial property market                                                                           these projects; three of these occur at
            in the Stavanger region is still very                   Trondheim                                        the waterfront.
            active, and the growth in the oil                       EiendomsMegler1 Næringsmegling
            exploration industry has created                        in Trondheim is expecting continued
            boom times for commercial as well                       increases in rents per square meter in
            as residential property. Both national                  the next 2 years. In prime locations
            as well as international investors                      in the CBD, rents are forecasted to
            find it increasingly attractive to buy                  exceed NOK 2,500 per m2 in the first
            property, as most properties are fully                  quarter of 2008.
            rented out, contain solid tenants,
            and so far have offered good invest-                    Average rent for office space is cur-
            ment opportunities with yield levels                    rently in the 1,200–1,700 NOK per
            around 6–7%.                                            m2 range for central locations. New
                                                                    construction of office space in attrac-




             39          YEAR-END OFFICE RENTS

                                                                                                                                            Rents in nominal NOK per m2
                                        1992   1993   1994   1995     1996   1997   1998    1999    2000    2001    2002    2003    2004       2005     2006 1H 2007
            Bergen                       750    800    800    850      950    950   1 000   1 100   1 175   1 250   1 125   1 075   1 075     1 100     1 225     1 350
            Trondheim                    750    750    800    850      850    900     950   1 050   1 100   1 150   1 050   1 000   1 100     1 200     1 350     1 600
            Stavanger – CBD              500    550    550    600      700    800     850     850   1 100   1 250   1 250   1 200   1 200     1 300     1 500     1 600
            Stavanger – Oil              550    600    600    600      650    750     800     800     950   1 000   1 000     950     950     1 050     1 200     1 300
            Source: Dagens Næringsliv
                                                                                                                                                                                                                                           R E G IO N AL PR O PE RT Y M AR KE T S                                                                         PA GE 2 9




                                                                           1 600
        REGIONAL OFFICE RENTS,
40      1987-2007
                                                                           1 400


All the other cities in Norway are in a period                             1 200
of solid rental growth. Average CBD office
rents have climbed with between 8% and
19% during the last six months.                                            1 000


                                                                             800


                                                                             600

        Bergen
                                                                             400
        Trondheim                                    NOK/m²/year
        Stavanger - CBD
                                                                             200
        Stavanger - Oil (Forus)

                                                                              0
        Source: Dagens Næringsliv                                                    1987
                                                                                                     1988
                                                                                                               1989
                                                                                                                              1990
                                                                                                                                                    1991
                                                                                                                                                                1992
                                                                                                                                                                             1993
                                                                                                                                                                                       1994
                                                                                                                                                                                              1995
                                                                                                                                                                                                              1996
                                                                                                                                                                                                                     1997
                                                                                                                                                                                                                                  1998
                                                                                                                                                                                                                                               1999
                                                                                                                                                                                                                                                              2000
                                                                                                                                                                                                                                                                           2001
                                                                                                                                                                                                                                                                                  2002
                                                                                                                                                                                                                                                                                         2003
                                                                                                                                                                                                                                                                                                        2004
                                                                                                                                                                                                                                                                                                                   2005
                                                                                                                                                                                                                                                                                                                                      2006
                                                                                                                                                                                                                                                                                                                                                 20071H
                                                                           12%
       REGIONAL OFFICE VACANCY,
41     2003-2007
                                                                           10%

Vacancy has leveled out in Trondheim, but
is still falling in Bergen and Stavanger.
                                                                           8%



                                                                           6%



                                                                           4%


       Stavanger
                                                                           2%
       Trondheim
       Bergen

                                                                            0%
       Source: Eiendomsmegler1 Midt-Norge
                                                                                            Oct - 2003




                                                                                                                                   Feb - 2004




                                                                                                                                                                          Jan - 2005




                                                                                                                                                                                                 Sep - 2005




                                                                                                                                                                                                                                  Feb - 2006




                                                                                                                                                                                                                                                                     Sep - 2006




                                                                                                                                                                                                                                                                                           Jan - 2007




                                                                                                                                                                                                                                                                                                                                    Aug - 2007
               Eiendomsmegler1 Rogaland
               Kyte Næringsmegling




                                                                           2 200
                                                                                                         Bergen                                                                                      Trondheim                                                                           Stavanger
42     OFFICE RENTS, JULY 2007                                             2 000

                                                                           1 800
The columns show lower and higher rents
for different areas within the three cities.                               1 600
Bergen rents are more uniform than
Stavanger and Trondheim.                                                   1 400

                                                                           1 200

                                                                           1 000

                                                                            800
                                                 Office rent, NOK per m2




                                                                            600
       Best rent levels
                                                                            400
       Lower rent levels
                                                                            200

                                                                                 0
       Source: Eiendomsmegler1 Midt-Norge
                                                                                                         CBD

                                                                                                                      Fringe CBD

                                                                                                                                                Fyllingsdalen

                                                                                                                                                                Sandsli




                                                                                                                                                                                                       CBD

                                                                                                                                                                                                                     Fringe CBD

                                                                                                                                                                                                                                     East

                                                                                                                                                                                                                                                      South




                                                                                                                                                                                                                                                                                          CBD

                                                                                                                                                                                                                                                                                                           Forus

                                                                                                                                                                                                                                                                                                                          Dusavik/Tananger




               Eiendomsmegler1 Rogaland
               Kyte Næringsmegling
PA GE 3 0   REGION A L P ROP E RTY MAR K ETS




            RE CE NT R EG IO N A L MA R K E T A CT I V I T Y



             43      LEASING


            Property / location                         Tenant                              Owner                                       Rent / m2        Floor space m2      Lease Duration
            STAVANGER
            Lagårdsveien 77–81                          Petro Media                         Scan Bo AS                                       1 500                  450
            Vassbotn 1                                  Maersk Oil & Gas                    Trallfa Løwenstrasse III                         1 400                  550
            Kannikgaten 17                              Agape                               Kannikgaten 7 AS                                 1 500                  658
            Lagerveien 12 A                             Songa Management AS                 Lagerveien 12 A AS                               1 100                  384              2 year
            Lagerveien 12 A                             Trac ID Systems AS                  Lagerveien 12 A AS                                 935                  446              3 year
            Forusbeen 10                                Teknologisk Institutt               Bryggeriparken                                     904                1 168              5 year
            Welhavensvei 9                              Allianse Regnskap AS                Wellco Eiendom AS                                1 200                  524              5 year
            Støperigaten 2                              Ut i Naturen                        FKØV Eiendom Stavanger AS                          400                1 000             10 year
            Auglendsmyrå 3                              Onninen AS                          Auglendsmyrå 3 AS                                  740                  642              7 year
            Halvorstraen                                Sub Sea Intervention AS             Pynteneset Eiendom AS                              530                1 320              3 year
            Haakon VII’s gt. 9                          Aker Exploration AS                 Haakon VII’s gt. 9 AS                            2 100                1 050              5 year
            TRONDHEIM
            Søbstadveien 2                              Sjakk Matt Frisører AS              Maja Eiendom AS                                  1 700                  370              5 year
            Innherredsveien 7                           Sparebank 1                         Innherredsveien 7 AS                             1 450                1 125             10 year
            Stiklestadveien 3                           Trondheim Kommune                   Innsikten Eiendom AS                               925                1150             3+2 year
            BERGEN
            Skisbyggerhallen/Solheimsviken                                                  Solheimsviken AS                                 1 465                1.443              5 year
            Beddingen (Solheimsviken)                   North Edge AS                       Solheimsviken AS                                 1 510                  766              5 year
            Myrdalsveien 35 (Åsane)                     Eniro AS                            Sano Eiendom AS                                  1 425                  720              5 year



             44      SALES


            Property / location                               Floor space m2      Price, MNOK             Yield      Buyer                           Seller
            STAVANGER
            3 office buildings                                                              336           5.9%       Sparebank 1 SR Bank             Hinna park
            Hinna Park                                               134 000                620                      Scandinavian Property           Hitec Industries og Smedvig Eiendom AS
            Avishuset Stavanger Aftenblad                                                   163                      Vital Forsikring AS             Stavanger Aftenblad
            Koppholen 6                                                 10 000              190           5.9%       DnB NOR Markets Fond            Vestre Platå AS
            Portfolio of 4 builings in Stavanger og Sandnes             15 196              185                      Teesland iOG
            Luramyrveien 65                                              6 130               63          13.2%       Storebrand                      Luramyrveien 65 AS
            TRONDHEIM
            Sommergården                                                 1 380                36          2.8%       Sommerveita 3 AS                Norges Samemisjon
            Pirsenteret                                                 49 500             1 010                     API                             Trøndelag Eiendom 2 AS
            Nordregate 18–20                                             2 150                69          5.0%       Byareana AS                     Bybroen Bolig AS
            BERGEN
            Sandslimarka 55                                             12 900              180           6.3%       Vital Eiendom                   Sandslimarka 55 KS
            Sandslimarka 35                                             10 000              186           6.8%       Union                           Sandslimarka 35 AS
            Nordåsdalen 26                                               8 100               93           7.5%       Bergen Bygg AS                  Paal Kahrs Eiendom AS
            Myrdalsveien 35                                              8 000              130           6.5%       Vital Eiendom                   Sano Eiendom AS
            Åsamyrane                                                   10 000              220          5.85%       Eiendomsfond                    Profier AS



             45      NEW BUILDING/REHABILITATION


            Property / location                                          Floor space m2            Developer                   Tenant                           Completion
            STAVANGER
            Gamle Forusvei 1                                                       6 000           Øgreid Eiendom                                                2 007
            Vestre Svaneholmen 4                                                   7 000           Seabrokers Eiendom AS                                         2 007
            Laugmannsgt. 7                                                           900           Grønhaug Retail AS                                            2 007
            TRONDHEIM
            Verftstomta                                                           15 000           Villaservice and partners   2 100                            Primo 2009
            Pirsenteret, last stage                                               13 000           Pir Utvikling AS            1 600                            Medio 2008
            Teknobyen stage III                                                   13 000           KLP Eiendom Trondheim       1 700                            Ultimo 2008
            BERGEN
            Folke Bernadottesvei 38                                               13 000           Nordea Liv                  Engineering / Finance            01–12–08
            Krohnstadparken                                                       12 000           Bara Eiendommer                                              01–12–09
            Beddingen                                                              8 000           Solheimsviken Næringsp.     GC Rieber / North Edge           01–08–08
HOFFSVEIEN 70 B                        HOFFSVEIEN 70 B
AKERSHUS EIENDOM HANDLED THE LEASING
OF 1,092 M² FOR ASTRAZENECA AS
PA GE 3 2   IN T ERN AT ION A L OFFICE MAR KETS




            I NT E RN ATIO N AL O F F I CE M A RK E T S



            Nordic Office Markets                                            With the exception of Helsinki, during                                     opment in rents for some major
            The Nordic market outlook is con-                               the first half of 2007 investors seems                                     cities. Each market moves clockwise
            tinuing to look very positive. The                              to have been acting more cautiously in                                     through cycles of growth and decline
            economic activities are maintaining                             virtually every market, as investments                                     in office rents, and thereby changes
            their momentum, as the revised                                  have generally been lower compared                                         positions on the clock. The left side
            GDP growth rate is 3.7%, 3.2% and                               to the previous year. However, most                                        of the clock represents growth, while
            4% in Sweden, Denmark and Fin-                                  market players expect increased activ-                                     plots on the right side signal office
            land, respectively. Prime yields are                            ity in the second half of the year.                                        rents declining. The two clocks
            going down in every Nordic capital                                                                                                         depicted illustrate the market move-
            alongside with rising prime rents and                           European office markets                                                     ments for the different cities over
            decreasing vacancies. The prime                                 The Jones Lang LaSalle “Office                                             6 months. Oslo is currently at the
            value index indicates a growth of                               Clock” describes the European                                              9 o’clock position along with London
            between 5% and 12% for each of the                              market situation by plotting devel-                                        West End and Stockholm.
            capitals, with the exception of Oslo,
            which experienced 51% increase                                   46          NORDIC DATA
            in value. In the wake of some tur-
            bulence in the Danish real estate                               Key Data                                       Oslo           Stockholm          Copenhagen          Helsinki        Gothenburg
            market, vacancy has increased by                                Inflation 2007                                 0.7%           1.9%               1.2%                2.6%            1.9%
                                                                            Prime Yield (CBD)                              4.00-4.50%     4.40%              4.75–5.00%          4.75%           4.75%
            one-tenth to 4.2%, despite a small                              Yield grade B properties (CBD)                 4.75-5.50%     4.75–5.25%         5.25–5.75%          5.75–6-25%      5.15–6.65%
            increase in rent. Stockholm, on the                             Prime Rent (CBD)                               4,000          4,100              1,900               298             2,250
            other hand, has performed strongly in                           B grade Rent B (CBD)                           2,300          3,000              1,500               240–264         1,600
                                                                            Office Space                                   8.5 mill m²    10.8 mill m²       10.9 mill m²        7.9 mill m²     3.1 mill m²
            the first half of 2007, and vacancy has                         Completions - 2007                             70,000 m²      76,700 m²          11,000 m²           90,000 m²       13,500 m²
            dropped by 16%.                                                 Completions - 2008                             115,000 m²     90,700 m²          11,181 m²           220,000 m²      17,600 m²
                                                                            Vacancy June 2007                              5.0%           12.2%              4.2%                8.0%            9.4%
                                                                            Source: Akershus Eiendom, Jones Lang LaSalle




             47      JONES LANG LASALLE OFFICE CLOCK – MAIN EUROPEAN CITIES

                                                Q4 2006                                                                                                                   Q2 2007

                                 Moscow                                                                                                             St Petersburg
                                                                                                                                                        Kiev
                                                                                                                                                Moscow

                                       Rental                                                                                                                   Rental
                                                             Rents                                                                                                                     Rents
                                      growth                                                                                                                   growth
                                                             falling                                                                                                                   falling
                                      slowing                                                                                                                  slowing
              London                                                                                                             London West End,
              West End,                                                                                                          Oslo, Stockholm
              Oslo
                                                                                                                                  Barcelona, Dublin,
                                      Rental                Rents                                                                       London City,            Rental                Rents
              London City
                                     growth               bottoming                                                              Madrid, Paris, Rome           growth               bottoming
              Dublin, Madrid       accelerating              out                                                                              Warsaw         accelerating              out

              Barcelona,                                                                                                                       Munich
              Stockholm, Paris                                                                                                  Hamburg, Luxembourg, Lyon

              Hamburg, Munich,                                                                                                                    Athens, Brussels
              Luxembourg, Lyon                                                                                                                   Frankfurt, Düsseldorf,
                                 Warsaw                                                                                                  Helsinki, Copenhagen, Vienna
                                                                                                                                                Amesterdam, Edinburgh               Berlin
                       Brussels, Frankfurt,
                       Copenhagen                                                                                                                                 Budapest
              Düsseldorf, Helsinki, Edinburgh                      Berlin                                                                                Prague, Lisbon, Milan
                                 Rome, Vienna
                       Athens, Prague, Budapest,          Lisbon
                       Amsterdam, Milan                                                                                                                                          Source: Jones Lang LaSalle
                                                                                                                                       IN T E R N AT IO N AL O F F IC E M AR KE T S   PA GE 3 3




48            NORDIC OFFICE YIELD DEVELOPMENT                                         49          NORDIC OFFICE RENT DEVELOPMENT




  7.50%                                                                                     700
  7.25%
  7.00%                                                                                     600
  6.75%
  6.50%                                                                                     500
  6.25%
  6.00%                                                                                     400
  5.75%
  5.50%                                                                                     300
  5.25%
  5.00%                                                                                     200
  4.75%
  4.50%                                                                                     100
                                                                                      /m2




  4.25%
  4.00%                                                                                       0
                  1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007                              1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007


                          Helsinki prime yield               Malmö prime yield                                Helsinki prime rent                      Malmö prime rent
                          Copenhagen prime yield             Gothenburg prime yield                           Copenhagen prime rent                    Gothenburg prime rent
                          Oslo prime yield                   Stockholm prime yield                            Oslo prime rent                          Stockholm prime rent


              Source: Akershus Eiendom, Jones Lang LaSalle                                        Source: Akershus Eiendom, Jones Lang LaSalle




50            PRIME VALUE INDEX (= RENT/YIELD)                                        51          NORDIC OFFICE VACANCY DEVELOPMENT




  14 000                                                                                    20%

                                                                                            18%
  12 000
                                                                                            16%
  10 000                                                                                    14%

                                                                                            12%
      8 000
                                                                                            10%
      6 000
                                                                                             8%

      4 000                                                                                  6%

                                                                                             4%
      2 000
/m2




                                                                                             2%

         0                                                                                   0%
                  1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007                              1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007


                          Helsinki prime value               Malmö prime value                                Helsinki vancancy rate                   Malmö vancancy rate
                          Copenhagen prime value             Gothenburg prime value                           Copenhagen vancancy rate                 Gothenburg vancancy rate
                          Oslo prime value                   Stockholm prime value                            Oslo vancancy rate                       Stockholm vancancy rate


              Source: Akershus Eiendom, Jones Lang LaSalle                                        Source: Akershus Eiendom, Jones Lang LaSalle
PA GE 3 4   T H E RETA IL MA RKET




            T HE RETAIL M AR K E T



            We are witnessing continuous growth                       Our estimate for construction of new                the shopping malls are likely to rise
            in the Norwegian retail market, with                      retail space (shopping centres and                  faster, at least until the end of 2008;
            an increase in turnover of 4.7% from                      warehouses) stands at roughly 168                   after that, the volume of new space
            May to June (seasonally adjusted).                        000 sqm within the larger Oslo area                 should cause rents to level off.
            This is 11.8% higher than June                            to be completed between today and
            2006, placing Norway ahead of all its                     the end of 2009. When extending the                 Canica have issued a voluntary offer
            neighbouring countries. This further                      perspective till 2012, another 60,000               for all shares in Steen & Strøm with
            confirms earlier predictions that retail                  sq m are planned, but this number is                the purpose of taking the company of
            property in Norway is one of the                          likely to rise. In the prime areas and              the stock market. This signals a very
            most promising sectors in Europe.                         along the two main shopping streets                 positive view on the shopping centres
            The tendency is verified by major                         Bogstadveien and Karl Johans gate,                  from one of its main investors.
            market players, such as Steen &                           there are practically zero vacancies,
            Strøm, whose second quarter accounts                      and at current retail turnover levels               Olav Thon’s Inforama in Sandvika
            revealed that their shopping centres’                     rents are on the verge of peaking, as               will be expanded with approximately
            total turnover increased by 4.9%                          margins are squeezed to the maxi-                   24,000 sq m and tied together with
            and their rental income by 8.9%.                          mum of what is economically feasible                the existing Sandvika Storsenter, cre-
            The fear of whether the growth we                         for shop owners. This implies that                  ating Norway’s largest shopping cen-
            have seen over the past quarters is                       further growth will be limited in                   tre (New Sandvika Storsenter), both
            sustainable has been somewhat com-                        the next couple of years for the top                in terms of turnover and area. This
            forted by witnessing a leap in private                    locations, unless the very high retail              project will be finalized this autumn.
            consumption of 10.4% since June                           sales growth continues through the
            last year.                                                increase in interest rates. Rents for




              52          RETAIL TRANSACTIONS H1 2007


             Property/location         City          Floor space m²    Price (MNOK)   Rent (NOK/m²)   Net initial yield    Seller                      Buyer
             Jærhagen Kjøpesenter      Sola          13 200            270,0          -                                                                API Fond II
             Løkketangen Torv          Sandvika      10 000            155,0          n.a.            6.50%                Conceptor AS and            RBS Nordisk Renting
                                                                                                                           Sektor Eiendomspartner AS
             Smart Club                Billingstad                      500,0         n.a.            n.a.                 Briksdalen                  RBS Nordisk Renting
            Source: Akershus Eiendom
                                                                                                                                                                                                                                                                                                                                           T H E R E TAIL M AR K E T                                                                         PA GE 3 5




                                                                      140                                                                                                                                                                                                                                                                                                                  12%
       NORWEGIAN RETAIL VOLUME
53     INDEX, 2005-2007
                                                                      138                                                                                                                                                                                                                                                                                                                  11%
                                                                      136                                                                                                                                                                                                                                                                                                                  10%
                                                                      134                                                                                                                                                                                                                                                                                                                          9%
Retail sales have continued their strong
                                                                      132                                                                                                                                                                                                                                                                                                                          8%
development, with annual growth between
5% and 10% for each month over the                                    130                                                                                                                                                                                                                                                                                                                          7%
previous year.
                                                                      128                                                                                                                                                                                                                                                                                                                          6%
                                                                      126                                                                                                                                                                                                                                                                                                                          5%
                                                                      124                                                                                                                                                                                                                                                                                                                          4%
                                                                      122                                                                                                                                                                                                                                                                                                                          3%




                                                                                                                                                                                                                                                                                                                                                                                                                Retail year-on-year growth
                                                                      120                                                                                                                                                                                                                                                                                                                          2%
       Retail volume index,
                                                Retail volume index




                                                                      118                                                                                                                                                                                                                                                                                                                          1%
       season adjusted, 2000=100
                                                                      116                                                                                                                                                                                                                                                                                                                          0%
       Retail year-on-year growth, right axis                         114                                                                                                                                                                                                                                                                                                                          -1%
                                                                      112                                                                                                                                                                                                                                                                                                                          -2%
                                                                      110                                                                                                                                                                                                                                                                                                                          -3%
       Source: Statistics Norway
                                                                                       Jun 05
                                                                                                Jul 05
                                                                                                         Aug 05
                                                                                                                  Sep 05
                                                                                                                              Oct 05
                                                                                                                                          Nov 05
                                                                                                                                                      Dec 05
                                                                                                                                                                  Jan 06
                                                                                                                                                                              Feb 06
                                                                                                                                                                                          Mar 06
                                                                                                                                                                                                      Apr 06
                                                                                                                                                                                                                  May 06
                                                                                                                                                                                                                              Jun 06
                                                                                                                                                                                                                                          Jul 06
                                                                                                                                                                                                                                                      Aug 06
                                                                                                                                                                                                                                                                  Sep 06
                                                                                                                                                                                                                                                                              Oct 06
                                                                                                                                                                                                                                                                                          Nov 06
                                                                                                                                                                                                                                                                                                      Dec 06
                                                                                                                                                                                                                                                                                                                  Jan 07
                                                                                                                                                                                                                                                                                                                              Feb 07
                                                                                                                                                                                                                                                                                                                                          Mar 07
                                                                                                                                                                                                                                                                                                                                                      Apr 07
                                                                                                                                                                                                                                                                                                                                                                  May 07
                                                                                                                                                                                                                                                                                                                                                                              Jun 07
                                                                                      1 000 000
       RETAIL CONSTRUCTION
54     2001-2007                                                                       900 000

       Annualized 4 quarter moving average
                                                                                       800 000
Permissions for new retail space in Norway
has doubled during the last two years. The                                             700 000
Oslo region shows a more stable annual
volume.
                                                                                       600 000
                                                                                                                                                                                                                   All of Norway
     Completed Norway                                                                  500 000
     Started Norway
                                                                                       400 000
     Permitted Norway
                                                                                       300 000
     Completed Greater Oslo
                                                                                       200 000
     Started Greater Oslo
                                                                        m² per year




                                                                                                                                                                                                                   Greater Oslo
     Permitted Greater Oslo
                                                                                       100 000

                                                                                                         0
       Source: Statistics Norway
                                                                                                                     2001Q1
                                                                                                                                 2001Q2
                                                                                                                                             2001Q3
                                                                                                                                                         2001Q4
                                                                                                                                                                     2002Q1
                                                                                                                                                                                 2002Q2
                                                                                                                                                                                             2002Q3
                                                                                                                                                                                                         2002Q4
                                                                                                                                                                                                                     2003Q1
                                                                                                                                                                                                                                 2003Q2
                                                                                                                                                                                                                                             2003Q3
                                                                                                                                                                                                                                                         2003Q4
                                                                                                                                                                                                                                                                     2004Q1
                                                                                                                                                                                                                                                                                 2004Q2
                                                                                                                                                                                                                                                                                             2004Q3
                                                                                                                                                                                                                                                                                                         2004Q4
                                                                                                                                                                                                                                                                                                                     2005Q1
                                                                                                                                                                                                                                                                                                                                 2005Q2
                                                                                                                                                                                                                                                                                                                                             2005Q3
                                                                                                                                                                                                                                                                                                                                                         2005Q4
                                                                                                                                                                                                                                                                                                                                                                     2006Q1
                                                                                                                                                                                                                                                                                                                                                                                 2006Q2
                                                                                                                                                                                                                                                                                                                                                                                          2006Q3
                                                                                                                                                                                                                                                                                                                                                                                                    2006Q4
                                                                                                                                                                                                                                                                                                                                                                                                             2007Q1
PA GE 3 6   T H E H OT EL MA RKET




            T HE HO TEL M AR K E T



            Status                                     On a larger scale, Norwegian Prop-         is only modest supply of new hotels.
            The Norwegian hotel sector contin-         erty has just (14th August) bid for all    In general, setting up a new hotel is
            ues to be prosperous within a strong       the shares in Norgani at a premium         not particularly attractive in finan-
            economic climate.                          approximately 20% over the last            cial terms if there is the possibility
                                                       trading level. More than 60% of the        of building shopping malls or other
            Looking at recent statistics for June,     shareholders had accepted the offer        types of commercial property with a
            there was a 12-month increase in           at the date it was publicly released.      higher end value per square meter.
            guest-nights both from domestic and        Norgani has a portfolio of some 70         The relatively low room rates in
            foreign visitors, 9% and 3% respec-        hotels in the Nordic region.               Norway compared to our neighbour
            tively, giving a total increase of 7%.                                                countries does not allow for the high
                                                       Assumptions                                values we currently see in the retail
            Room rates are also showing a healthy      There continues to be a lack of            and office sectors.
            progress and were as of June up            investment opportunities in the hotel
            almost 10% over the previous year for      sector, thus keeping the pressure on
            the country overall, whereas in Oslo       yields. There are of course some vari-
            the increase was as much as 16%.           ations depending on lease structures,
                                                       particularly concerning whether the
            Occupancy levels for Norway over-          owner is directly exposed to market
            all were up from 45.3% to 47.1, and        fluctuations or is shielded by a high
            in Oslo up from 66.2% to 66.7%.            minimum rent. As room rates and
            Although the Oslo increase was mar-        occupancy rates have now already
            ginal, the overall level is quite high.    climbed quite a bit, there is some
                                                       aversion among investors against capi-
            In terms of hotel transactions, there      talizing fully on further growth / the
            has been some activity in the first half   continuation of the current high levels.
            of the year. For example Aberdeen
            Property Investors have purchased          The prospect of new construction
            two airport hotels; one in Oslo and        of hotels in the various geographical
            one in Stavanger. Norgani agreed to        areas is obviously of importance. At
            acquire the property Clarion Collec-       the Oslo airport, the capacity is in
            tion Hotel Bastion in Oslo for NOK         the process of being increased sig-
            128 million.                               nificantly. In downtown Oslo, there
                                                                                                                                                                                                                                                                                                                                                        T H E H O T E L M AR K E T                                                           PA GE 3 7




                                                                          25%                                                                                                                                                                                                                                                                                                                          70%
       VOLUME OF GUEST NIGHTS IN
55     NORWEGIAN HOTELS
                                                                          20%                                                                                                                                                                                                                                                                                                                          60%

So far in 2007, the growth in guest nights
has largely been caused by domestic                                       15%                                                                                                                                                                                                                                                                                                                          50%
customers, while foreign guest nights rose
faster in 2006.
                                                                          10%                                                                                                                                                                                                                                                                                                                          40%


                                                                           5%                                                                                                                                                                                                                                                                                                                          30%
                                                   Guest night % change

       Occupancy (right axis)                                              0%                                                                                                                                                                                                                                                                                                                          20%




                                                                                                                                                                                                                                                                                                                                                                                                                           Occupancy share
       Domestic guest nights change year-on-year
       (left axis)

       Foreign guest nights change year-on-year                           -5%                                                                                                                                                                                                                                                                                                                          10%
       (left axis)



                                                                          -10%                                                                                                                                                                                                                                                                                                                         0%
       Source: Statistics Norway
                                                                                              Jun 05
                                                                                                        Jul 05
                                                                                                                 Aug 05
                                                                                                                          Sep 05
                                                                                                                                      Oct 05
                                                                                                                                                   Nov 05
                                                                                                                                                               Dec 05
                                                                                                                                                                           Jan 06
                                                                                                                                                                                        Feb 06
                                                                                                                                                                                                    Mar 06
                                                                                                                                                                                                                Apr 06
                                                                                                                                                                                                                            May 06
                                                                                                                                                                                                                                        Jun 06
                                                                                                                                                                                                                                                    Jul 06
                                                                                                                                                                                                                                                                Aug 06
                                                                                                                                                                                                                                                                            Sep 06
                                                                                                                                                                                                                                                                                         Oct 06
                                                                                                                                                                                                                                                                                                     Nov 06
                                                                                                                                                                                                                                                                                                                 Dec 06
                                                                                                                                                                                                                                                                                                                              Jan 07
                                                                                                                                                                                                                                                                                                                                          Feb 07
                                                                                                                                                                                                                                                                                                                                                      Mar 07
                                                                                                                                                                                                                                                                                                                                                                  Apr 07
                                                                                                                                                                                                                                                                                                                                                                              May 07
                                                                                                                                                                                                                                                                                                                                                                                          Jun 07
                                                                                                       1 000
       ROOM RATES - NORWAY
56     AND OSLO                                                                                           900

                                                                                                          800
Prices for Norwegian hotel rooms are
trending upwards since 2006, after a period                                                               700
of stagnation.
                                                                                                          600


       Oslo                                                                                               500
       Norway
                                                                                                          400

                                                                                                          300
                                                                             NOK/room/night




                                                                                                          200

                                                                                                          100

                                                                                                                 0
       Source: Statistics Norway
                                                                                                                                   1992

                                                                                                                                                     1993

                                                                                                                                                                        1994

                                                                                                                                                                                           1995

                                                                                                                                                                                                             1996

                                                                                                                                                                                                                                1997

                                                                                                                                                                                                                                                    1998

                                                                                                                                                                                                                                                                         1999

                                                                                                                                                                                                                                                                                          2000

                                                                                                                                                                                                                                                                                                              2001

                                                                                                                                                                                                                                                                                                                                2002

                                                                                                                                                                                                                                                                                                                                                   2003

                                                                                                                                                                                                                                                                                                                                                                      2004

                                                                                                                                                                                                                                                                                                                                                                                          2005

                                                                                                                                                                                                                                                                                                                                                                                                       2006

                                                                                                                                                                                                                                                                                                                                                                                                                        2007

                                                                                              160 000
       HOTEL CONSTRUCTION
57     2001-2007
                                                                                              140 000
       Annualized 4 quarter moving average

The strong hotel market has led to a lot of                                                   120 000
new projects. The completion volume is
set to rise for the coming year, but level                                                                                                                                                                                   All of Norway
out in 2009.                                                                                  100 000


       Completed Norway                                                                          80 000
       Started Norway
       Permitted Norway                                                                          60 000


       Completed Greater Oslo                                                                    40 000
       Started Greater Oslo                                                                                                                                                                                                  Greater Oslo
                                                                             m² per year




       Permitted Greater Oslo                                                                    20 000


                                                                                                                 0
       Source: Statistics Norway
                                                                                                                             2001Q1
                                                                                                                                          2001Q2
                                                                                                                                                      2001Q3
                                                                                                                                                                  2001Q4
                                                                                                                                                                               2002Q1
                                                                                                                                                                                           2002Q2
                                                                                                                                                                                                       2002Q3
                                                                                                                                                                                                                   2002Q4
                                                                                                                                                                                                                               2003Q1
                                                                                                                                                                                                                                           2003Q2
                                                                                                                                                                                                                                                       2003Q3
                                                                                                                                                                                                                                                                   2003Q4
                                                                                                                                                                                                                                                                                2004Q1
                                                                                                                                                                                                                                                                                            2004Q2
                                                                                                                                                                                                                                                                                                        2004Q3
                                                                                                                                                                                                                                                                                                                     2004Q4
                                                                                                                                                                                                                                                                                                                                 2005Q1
                                                                                                                                                                                                                                                                                                                                             2005Q2
                                                                                                                                                                                                                                                                                                                                                         2005Q3
                                                                                                                                                                                                                                                                                                                                                                     2005Q4
                                                                                                                                                                                                                                                                                                                                                                                 2006Q1
                                                                                                                                                                                                                                                                                                                                                                                             2006Q2
                                                                                                                                                                                                                                                                                                                                                                                                      2006Q3
                                                                                                                                                                                                                                                                                                                                                                                                               2006Q4
                                                                                                                                                                                                                                                                                                                                                                                                                          2007Q1
PA GE 3 8   T H E LOGIST IC S M AR K ET




            T HE LO G ISTIC S M A R K E T



              58          LOGISTICS AREAS


                 Logistics areas in and around greater Oslo
                                                                                                 Oslo Airport
                                                                                                 Gardermoen
                                                                                                                         Prime logistics area


                                                                                                                         Secondary logistics areas
                                                                                                     Kløfta/
                                                                                                     Ullensaker
                                                                                                     Næringspark         Other logistics areas



                                                       Gjelleråsen/Skytta
                                                                                          Fiellbo/Berger/
                                                                                          Høgslund/Hvam
                                                               Groruddalen
                                                                                     Lørenskog
                                                Rud     Oslo

                                       Billingstad

                                                                            Kolbotn/Mastemyr



                                   Lierbyen
                                                                        Regnbuen/Berghagan
             Drammen
                                                               Vinterbro




                                                                                                                   The main areas for logis-
                                                                                                                   tics properties are along
                                                                  Vestby                                           the E6 corridor from
                                                                                                                   Vestby to Kløfta.
            Source: Akershus Eiendom




            The logistics market has shown a                        Buyers of logistics properties are                       leaves behind approximately 52,000
            steady, stable growth over the last                     mainly property funds and life                           m2 in central Oslo, after KLP bought
            year. Rents have risen slightly to 850–                 insurance companies. Storebrand                          the property in February for NOK
            1,000 NOK/m2 for ideal, custom-built                    Eiendom has been very active on the                      800 million; this property has a very
            logistics space within the best areas.                  buyer side this far in 2007, acquiring                   central location and has a wide array
            The demand for good logistics space                     several properties in the larger Oslo                    of development options. Höegh /
            is appearing to be growing along with                   region. The sellers are often closed-                    Bunde acquired Arcus’ 94,000 m2
            general consumption, in addition to                     ended funds and private investors.                       premises on Økern for NOK 983
            ever-changing needs for storage and                     The UK-based Teesland entered the                        million, apparently with plans for
            transport solutions which generally                     Norwegian market by obtaining four                       developing the buildings and land for
            benefits larger players in the third-                   logistics properties in Stavanger and                    housing and commercial purposes.
            party logistics industry.                               Sandnes.                                                 The sellers will move out of Oslo
                                                                                                                             – Norway Post is in the process of
            Yield levels are currently at 6–6.5%,                   Arcus’ and Norway Post’s plans                           constructing a new 60,000 m2 facility
            which is historically low for logistics                 to move out of Oslo and sell their                       at Lørenskog (see map).
            properties, nonetheless creating more                   respective industrial properties have
            returns than many office properties.                    been moved forward. Norway Post
                                                                                                                                                                                                                                                 T H E LO G IS T IC S M AR K E T                                              PA GE 3 9




                                                                                1 200 000
             LOGISTICS CONSTRUCTION
59           2001-2007

             Annualized 4 quarter moving average                                1 000 000

  Completion of new logistics space has not                                                                                                                                            All of Norway
  varied much during the last six years, but
  permission and starting volumes indicate                                       800 000
  that the volume will rise towards 1 million
  m2 a year during 2008.

             Completed Norway                                                    600 000
             Started Norway
             Permitted Norway
                                                                                 400 000

             Completed Greater Oslo                                                                                                                                                    Greater Oslo
             Started Greater Oslo
                                                                                 200 000
                                                                  m² per year


             Permitted Greater Oslo


                                                                                       0
             Source: Statistics Norway
                                                                                            2001Q1
                                                                                                     2001Q2
                                                                                                              2001Q3
                                                                                                                       2001Q4
                                                                                                                                2002Q1
                                                                                                                                          2002Q2
                                                                                                                                                   2002Q3
                                                                                                                                                            2002Q4
                                                                                                                                                                     2003Q1
                                                                                                                                                                              2003Q2
                                                                                                                                                                                       2003Q3
                                                                                                                                                                                                2003Q4
                                                                                                                                                                                                         2004Q1
                                                                                                                                                                                                                  2004Q2
                                                                                                                                                                                                                           2004Q3
                                                                                                                                                                                                                                    2004Q4
                                                                                                                                                                                                                                             2005Q1
                                                                                                                                                                                                                                                      2005Q2
                                                                                                                                                                                                                                                               2005Q3
                                                                                                                                                                                                                                                                        2005Q4
                                                                                                                                                                                                                                                                                 2006Q1
                                                                                                                                                                                                                                                                                          2006Q2
                                                                                                                                                                                                                                                                                                   2006Q3
                                                                                                                                                                                                                                                                                                            2006Q4
                                                                                                                                                                                                                                                                                                                     2007Q1
60          LOGISTICS PROPERTY TRANSACTIONS, 1H 2007

                                                                 Floor                  Price               Rent                                  Net
Property                                           Location   space m²                (MNOK)            (NOK/m²)                         initial yield                        Seller                                                                  Buyer
Fløysbonnveien 2–4                                 Vestby       19 535                  268,0                   849.8                              5.88%                                                                                              API Fond II
Lørenveien 68                                      Oslo         11 704                  232,8                 1 158.3                              5.53%                      BSA Lørenveien 68 KS                                                    Storebrand
Kabelgaten 40                                      Oslo         15 359                  211,5                 1 008.2                              6.96%                      Økern Park ANS                                                          Storebrand
Rabekkgata 4                                       Moss          6 670                   45,5                   498.1                              6.94%                      Moss Boligeiendom AS                                                    Storebrand
Deliveien 10                                       Vestby       11 000                  108,0                   615.0                              5.95%                      Euro Eiendom                                                            Storebrand
Gunnar Knudsens vei 90                             Skien        16 510                  164,0                   593.6                              5.83%                      Borgerstad Lagerbygg as                                                 Storebrand
Arcus                                              Oslo         94 000                  983,0                   478.7                              4.12%                      Arcus                                                                   Höegh / Bunde
Trondheimsveien 275 (shares)                       Oslo          9 038                  103,0                   940.5                              7.84%                      Trygve Brudevold                                                        Gullik Hansen/Kjell Madland
Nesbruveien 73–75                                  Oslo         15 900                  101,0                   534.6                              8.00%                      Trygve Brudevold                                                        Gullik Hansen/Kjell Madland
Biskop Gunnerius gate 14 B                         Oslo         52 000                  800,0                                                                                 Posten                                                                  KLP
Source: Akershus Eiendom




                                                                                                                                                                                                  KARIHAUGVEIEN 2 2




                                    KARIHAUGVEIEN 22
      AKERSHUS EIENDOM IS HANDLING
             THE LEASING OF 36,000 M² FOR
                                            CONSEPTOR AS.
PA GE 4 0   T H E RESID EN T IA L MAR KET




            T HE RES IDEN TIA L M A RK E T


                                                                                                         40%                                                                     32 000
                    NORWEGIAN RESIDENTIAL PRICES
             61     2004–2007, NOMINAL VALUES
                                                                                                         35%                                                                     28 000


              Residential prices rose by record high                                                     30%                                                                     24 000
              numbers during 2006. So far in 2007,
              prices have grown slower and even shown
              a marginal decrease.                                                                       25%                                                                     20 000


                                                                                                         20%                                                                     16 000




                                                                                                                                                                                           Average sales price, NOK/m2
                                                                                                         15%                                                                     12 000
                                                                                 % annual price change




                                                                                                         10%                                                                      8 000
                                                                  2
                    Average residential price, NOK/m
                    (right axis)
                                                                                                          5%                                                                      4 000
                    Year-on-year change, %
                    (left axis)

                                                                                                          0%                                                                      0
                    Source: Norwegian Assicioation of Real Estate Agents (NEF)
                                                                                                               Aug 04
                                                                                                               Sep 04
                                                                                                               Oct 04
                                                                                                               Nov 04
                                                                                                               Dec 04
                                                                                                               Jan 05
                                                                                                               Feb 05
                                                                                                               Mar 05
                                                                                                               Apr 05
                                                                                                               May 05
                                                                                                               Jun 05
                                                                                                                Jul 05
                                                                                                               Aug 05
                                                                                                               Sep 05
                                                                                                               Oct 05
                                                                                                               Nov 05
                                                                                                               Dec 05
                                                                                                               Jan 06
                                                                                                               Feb 06
                                                                                                               Mar 06
                                                                                                               Apr 06
                                                                                                               May 06
                                                                                                               Jun 06
                                                                                                                Jul 06
                                                                                                               Aug 06
                                                                                                               Sep 06
                                                                                                               Oct 06
                                                                                                               Nov 06
                                                                                                               Dec 06
                                                                                                               Jan 07
                                                                                                               Feb 07
                                                                                                               Mar 07
                                                                                                               Apr 07
                                                                                                               May 07
                                                                                                               Jun 07
                                                                                                                Jul 07
            Residential prices                                                                           rents, and this has pushed the yield     Residential construction
            In line with the house price growth                                                          to record low levels. These low          As illustrated by figure 62, the
            trend since 2003, we have seen                                                               yields combined with rising inter-       residential construction has not yet
            an increase in residential prices of                                                         est rates has reduced, or in some        leveled off as the price growth is
            11.3% from July 2006 to July 2007.                                                           cases removed, the yield-spread that     receding; new projects are being
            This growth however seem to be                                                               has contributed to the rising prices.    added at a strong pace. Despite con-
            slowing down, as we note a marginal                                                          The favorable taxation of real estate    tinuously rising construction costs,
            decrease in prices in July for the                                                           investments, with low taxable values,    the volume of homes under construc-
            first time in four years. This can be                                                        no property tax in many municipali-      tion is now at record levels. The rise
            partially blamed on a sustained trend                                                        ties, no capital gains tax when sell-    in construction costs will reduce
            when the increase in residential                                                             ing your own residence, still makes      margins and should at some point be
            prices has exceeded the increase in                                                          owning your own house an attractive      likely to reduce the volumes of new
            wages; many economists have argued                                                           investment, though.                      projects as well; however, we expect
            that this cannot be sustainable in                                                                                                    construction of retail space to slow
            the long run. The Central Bank’s                                                             It is reasonable to expect that the      down before the residential construc-
            rapid increases in interest rates have                                                       yield will rise as rental prices are     tion does.
            started to have the intended effect                                                          growing faster while house prices
            on the market, as it seems to be cool-                                                       are leveling out. Due to the rising
            ing down.                                                                                    interest rates, demand for rentals is
                                                                                                         expected to increase as many can no
            The price growth experienced in                                                              longer afford the high costs of enter-
            the residential market lately has                                                            ing the market.
            generally not been followed by the
                                                                                                                                                                  T H E R E S ID E N T IAL M AR K E T    PA GE 4 1




                                                                                   45 000
       RESIDENTIAL CONSTRUCTION IN
62     NORWAY, 1993-2007                                                           40 000


                                                                                   35 000
 The number of units completed has stayed
 high during the first half of 2007. New
 projects have been added to the market,                                           30 000
 indicating that the completion rate is
 unlikely to slow down.                                                            25 000


                                                                                   20 000
                                                     Volume of residential units




                                                                                   15 000


       Residential units under construction                                        10 000

       Completed residential units, last 12 months
                                                                                    5 000


                                                                                       0
       Source: Statistics Norway
                                                                                            1993

                                                                                                   1994

                                                                                                          1995

                                                                                                                 1996

                                                                                                                        1997

                                                                                                                               1998

                                                                                                                                      1999

                                                                                                                                             2000

                                                                                                                                                    2001

                                                                                                                                                           2002

                                                                                                                                                                      2003

                                                                                                                                                                             2004

                                                                                                                                                                                    2005

                                                                                                                                                                                           2006

                                                                                                                                                    TEVLINGVEIEN 23                               2007




                                   TEVLINGVEIEN 23
SOLD BY A DTZ CLOSED ENDED FOND.
  AKERSHUS EIENDOM HANDLED THE
                                     TRANSACTION.
DRONNING MAUDS GATE 10             DRONNING MAUDS GATE 10
AKERSHUS EIENDOM HANDLED
THE LEASING OF 2,000 M² FOR VIKA
EIENDOMSFORVALTNING.
                                                                                                      D E F IN IT IO N S /W E B - LIN K S   PA GE 4 3




DE F I NITIO N S / W EB - L I NK S



DEFINITIONS                                          WEB-LINKS
Area definitions:                                     Akershus Eiendom AS and associated companies:
BTA      Bruttoareal                   Gross area    Akershus Eiendom AS                             www.akershus-eiendom.no
BRA Bruksareal                        Usable area    Jones Lang La Salle                             www.joneslanglasalle.com
BOA Boligareal           Living area – residential   Kyte Næringsmegling AS                          www.kyte.no
BYA                     Foot print of the building   Eiendomsmegler 1                                www.eiendomsmegler1.no


1 dekar                           1,000 m2 1 mål     Interest rates:
1 acre                                  4,046 m2     Central Bank of Norway                          www.norges-bank.no
1 inch                                  2.541 cm     DnB NOR                                         www.dnbnor.no/markets
1 foot                                  30.48 cm     Nordea                                          www.nordea.no
1 yard                                0.91 metres    Bolig og Næringskreditt                         www.bnkreditt.no
1 m2                            10.76 square feet    Norgeskreditt                                   www.norgeskreditt.no
1 square foot                          0.0929 m2     Oslo Stock Exchange                             www.ose.no
                                                     Statistics Norway                               www.ssb.no
Abbreviations:                                       (Statistisk Sentralbyrå, SSB)
Aetat: Arbeidsmarkedsetaten
          (Governmental employment agency)           Political information:
CBD:      Central Business District                  Government departments                          www.dep.no
CPI:      Consumer Price Index                       Finance department                              www.dep.no/fin
ITC:      Information, Technology & Telecom
NOK:      Norwegian Krone                            Property information:
SSB:      Statistisk Sentral Byrå (Norwegian         Eiendom På Internett                            www.ne.no
          National Bureau of Statistics)             Elektronisk grunnbok og GAB                     www.eiendomsinfo.no
                                                     OPAK                                            www.opak.no
Taxes and depreciation:                              Prognosesenteret                                www.prognosesenteret.no
Office buildings: 2%                                 Bygg- og anleggsnæringen på Internett           www.ba-torget.no
Warehouse/industrial: 4%                             Informasjon for bygge- og anleggsnæringen       www.cobuilder.com
Shopping centres: 2%                                 Dagens Eiendom                                  www.dagenseiendom.no
Hotels: 4%                                           Eiendomsverdi Næring                            www.evn.no
Document tax (stamp duty): 2,5% of
transaction value                                    International links:
Property tax: Depends on the county,                 International Property Index                    www.ipdindex.co.uk
many currently have a zero rate.                     Swedish property index                          www.fastighetsindex.se


Hotel:                                               Public agencies:
Room yield:      Average rate multiplied by the      Oslo municipality (Oslo Kommune)                www.oslo.kommune.no
                 number of rooms sold                Oslo municipality agency for building matters
Room nights: Number of rooms sold in a               (Plan- og bygningsetaten)                       www.pbe.oslo.kommune.no
                 given period                        Aetat                                           www.aetat.no
PA GE 4 4   A KERSH U S EIEN DOM AS




            AKE RS H US EIEN DOM A S



            ORGA N ISAT ION           Akershus Eiendom AS is an independent commercial property advisor for the
            Sales                     Norwegian market. Akershus Eiendom advises its clients on sales, leasing, devel-
            Roar Sandnes              opment, research, valuations and other areas of commercial property business.
            Jørgen Haga               Services are offered for offices, warehouse facilities, shops/shopping centres,
            Simen Torgersen           hotels,land, and related types of property. Akershus Eiendom has during the past
            Petter Nylend             five years handled sales transactions for properties of a total value of more than 25
            Amund Medbø               billion NOK,and has handled leasing of more than 500,000 m² of office space.
            Rune Holmøy
                                      Akershus Eiendom is associated with Kyte Næringsmegling in Bergen,
            Research/valuation        Eiendomsmegler1 in Trondheim and Stavanger, and Jones Lang LaSalle
            Jørgen Haga               internationally.
            Ragnar Eggen
            Bjørn Erik Nilsen
            Erik André Bratt                                                      Akershus Eiendom AS
            Christian Valdem                                                      Visiting address:
            Lasse Bjørndahl                                                       Haakon VII’s gate 10
                                                                                  P.O. Box 1739 Vika, NO–0121 Oslo
            Leasing                                                               Telephone: +47 22 41 48 00
            Håkon Tanberg                                                         Telefax: +47 22 41 48 06
            Amund Medbø                                                           Web page:
            Ole Christian Iversen                                                 www.akershus-eiendom.no
            Rune Arvesen                                                          Reg.no. 963.877.722
            Veronica Rønning
            Hanne Cecilie Apalnes     In cooperation with:
            Karl Stenhagen
            Marianne Johannessen

            Administration
            Marte Overå
            Brith Hoel                Jakobsbergsgatan 22                         C. Sundtsgate 39
                                      Box 1147                                    Postboks 2067 Nordnes
            Support                   SE–111 81 Stockholm                         NO–5817 Bergen
            Gro Randen                Telephone: +46 8 453 50 00                  Telephone: +47 55 55 30 50
            Hilde Bang                Fax: +46 8 453 51 10                        Fax: +47 55 55 33 54

            BOA RD OF D IRECTOR S

            Geir Saastad
            Petter Oppegaard
            Jørgen Haga
            Roar Sandnes              Kjøpmannsgaten 42                           Petroleumsveien 6
            Håkon Tanberg             Postboks 433 Sentrum                        Postboks 114
            Lars Buer                 NO–7404 Trondheim                           NO–4065 Stavanger
                                      Telephone: +47 73 89 06 00                  Telephone: +47 51 95 65 75
                                      Fax: +47 73 89 06 50                        Fax: +47 51 44 48 83
                T HE K L P BUI L D I NG, B A RCODE DEVELOPMENT A REA , B JØR V I K A




                   THE KLP BUILDING,
BARCODE DEVELOPMENT AREA, BJØRVIKA
            SOLD BY OSLO S UTVIKLING.
          AKERSHUS EIENDOM HANDLED
                    THE TRANSACTION.
Visiting address:   Haakon VII´s gt. 10, NO-0161 OSLO, NORWAY
Postal address:     P.O. Box 1739 Vika, NO-0121 Oslo, Norway
Telephone:          +47 22 41 48 00
Telefax:            +47 22 41 48 06
E-mail:             research@akershus-eiendom.no
Web:                www.akershus-eiendom.no

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:32
posted:10/5/2012
language:Unknown
pages:48