Selvaag sells Selvaag Utleiebolig to KLP – the largest rental housing transaction ever in Norway

Selvaag AS has sold the rental portfolio owned by Selvaag Utleiebolig, including all underlying companies, to KLP. The portfolio consists of 17 projects with approx. 1,000 modern apartments in attractive locations across Greater Oslo and Bergen. The total property value is NOK 3.3 billion, including Mathildetunet in Lørenskog, which will be completed before year-end. This is the largest rental housing (multifamily) transaction ever in Norway.

A leading player in the Norwegian rental market

Since the establishment in 2014, Selvaag Utleiebolig has developed into a leading player in Norway’s rental housing market. Built up gradually over the past 11 years, the company owns and manages around 1,000 apartments across 13 properties in Greater Oslo and 4 in Bergen. The total lettable area (BRA-i) is 51,740 square meters, and the occupancy rate is 98%. The portfolio consists of well-managed properties located in areas with strong demand and stable rental growth.

Selvaag Utleiebolig is also the largest private player within referral agreements in Norway, a collaboration between The Norwegian State Housing Bank (NW: Husbanken), the municipalities and private owners, that helps secure housing for individuals who are unable to access the rental housing market on their own. Under KLP’s ownership, the existing referral agreements will continue, although without the involvement of The Norwegian State Housing Bank.

USBL will assume responsibility for the operational management of the portfolio, including the current 12 employees.

A long-term ownership shift driven by the changing economic framework

Selvaag Utleiebolig has developed in line with the owner’s goals and ambitions. However, the economic framework for private ownership of rental housing in Norway has changed significantly in recent years.

“Selvaag AS is a company owned by a family committed to living and investing in Norway. With the substantial increase in wealth taxation in the recent years, particularly for rental housing properties, continued ownership of Selvaag Utleiebolig has become economically unsustainable. The combined impact of wealth and dividend tax makes continued ownership too demanding. We are very pleased that the company is now gaining a stable and long-term owner in KLP, with an experienced manager like USBL as part of the team,” says Frederik Selvaag, Chair of Selvaag Utleiebolig.

“This is a great investment for us that significantly supports our goal of increasing residential exposure. Backed by pension funds from Norway’s municipal and healthcare sectors, we take a long-term approach to our investments and aim to ensure that high-quality rental housing remains available for those who need it,” says Ellen Langeggen, CEO of KLP Eiendom.

The transaction is subject to approval by the Norwegian Competition Authority.

Colliers acted as financial advisor and facilitator in the transaction. Selmer served as legal advisor to the seller.

For further information, please contact:

Tore Myrvold, CEO, Selvaag AS
tore.myrvold@selvaag.no | +47 400 20 963

Frederik Selvaag, Chair, Selvaag Utleiebolig
frederik.selvaag@selvaag.no | +47 908 71 460

Ellen Langeggen, CEO, KLP Eiendom
+47 907 53 022