Langtind is one of the largest brokers in apartment buildings in Oslo. Last year he sold townhouses for around 700 million. The most expensive changed hands for well over 100 million. Now Langtind a good handful of apartment buildings he probably should publish.
Partner and senior broker Terje Tinholt in Nordvik & amp; Partners confirms the trend.
– The phenomenon is not entirely new. We have noticed an increased interest in townhouses in the past two years. But unrest and fall on the stock market has meant that this has been exacerbated in recent months. More investors want money out of stock and into something else, says Tinholt.
A real estate investor who has been long in the game, points out that the interest rate plays a significant role.
– it has a lot to say that interest rates are so low, he said.
Several of Norway’s richest have built fortunes on their apartment buildings. A bunch of them are as active now as when they began some 15 years ago – and sell allegedly never. The last two years, new actors who have profited from shares and other, come to as well.
– The buyers are mainly divided into two groups. Those who buy property as an investment and is long. And those who butcher, thus renovating, sectioned and sell, says Langtind.
He said that the large and long-term investors are “buyer”, while developers are more uncertain. That is also more of farm owners, especially those who own a farm or two.
– I get several calls from owners who wonder to sell. Is the top now? they wonder, continues Langtind.
– An owner of a small apartment building on Majorstuen said to me that he is tempted to sell, but then he wondered also what he should do with so much money. Dare I put the money on the Oslo Stock Exchange? I certainly can not put them in the bank, says Langtind the farm owner.
Tried in clips?
The hot market for apartment buildings causes some samples in quick clip. In autumn 2014 dead business lawyer and real estate investor Erik Sture Larre (100). In his final years he stood listed with a fortune of 700 million in Kapital overview of Norway’s 400 richest. Last year sold heirs his an apartment building in Sorgenfrigaten 35 at Majorstuen. The buyer was SATS-founder Elaine Liven. He turned up at the estate after he received a gain on the sale of fitness chain in 2006.
– I think only of one thing now. Two-room, two-room, two-room, said Liven Finansavisen late summer 2014. When he was 65-70 houses and said that he concentrated on Grünerløkka and Dælenenga
In the capital knows paid Liven around 85 million farm in Sorgenfrigaten, which also lies further west of Oslo. The property will be offered for 130 million. The farm will be in poor condition and “must be taken from a to z”, according to a source that has been offered to buy it.
– I’m in a meeting and will soon go on a winter vacation, says daily manage and broker Henrich Mørch in residential and commercial broker industry (BN Units), which will have the mission to sell townhouse in Sorgenfrigaten.
A key source in the real estate capital have talked to says Mørch is the largest broker on apartment buildings in Oslo.
– He works closely with property investor Edgar Haugen. Haugen had placed Mørch beside them in the 50 birthday. Ask Mørch the market is so hot that he manages to get 130 million for Sorgenfrigaten when the farm was sold for 85 million last year, said the person.
– I have no comment on the mission, said Mørch to capital.
Just before capital goes to press, we get hold of Liven.
– it is not true that it will be sold.
– capital spoke with someone who has received an offer to buy it for 130 million?
– Yes, it’s true that some have been and seen on the farm. It was to check whether the price I paid was fair. I’ll keep the farm and modernize it, he said.
Liven denies that he paid 85 million for the farm which is still listed on Erik Sture Larre in Infoland. He will not say anything about what he did.
Safe haven
In 2013 and 2014 there was an increase in the number of wealthy investors who put money into apartment buildings. This led to price pressure because the long-term investors have a higher willingness to pay than those who must slaughter and sell.
– The increased demand for apartment buildings is a result of high liquidity and good access to funding, says Tinholt.
– Investors are looking at real estate as a safe haven, says Langtind. – Performance is of four-five percent. Those times it is at three percent, the buyer can often turn up the rent. There are many landlords who have kept the rent low because the farm has risen from around ten to 40 million kroner. Then they have not bothered to do anything about the rent. Banks are also looking at apartment building purchases safely. They lend lots of money to property, he points out.
At the end of 2015 sold Tinholt a small apartment building, Oscars gate 47-49, behind the castle. It was laid out with a suggested price of 62 million. According to Finance newspaper was the traded around 55-58 million. The property is sold as a limited company. It can be triggered tax, wrote our sister publication on Christmas Eve last year.
The property was at one time the most expensive lying out in the open market.
– The property had top two- location. It’s just Gimle better, says Tinholt.
– Clients who live outside the city, want something smaller town, but not something that is so very much less. It is the same trend of good addresses in London and New York, he points out.
Eiendomsmegleren believes that this has led to some landlords rather create four apartments of 250 square meters than ten of 100 square meters, if they buy an apartment building thousand square meters.
Tinholt has not sold any apartment buildings yet this year, but it should not be the buyers it is on.
– We have around ten cash buyers in all categories, says he said.
– following the sale of Oscars gate, we see that many customers are looking for something similar, some are serious, some are not.
the company Nordvik & amp; Partners selling scarce ten apartment buildings totaling last year.
Premium Price on all farms
Langtind also tells of another trend: apartment buildings are sold together for higher prices than individual houses; a farm with ten apartments costing more than ten individual apartments on different farms. Buyers may be willing to pay a “premium” of up to ten percent. The reason is that even then cost control, when everything is all in one, in a farm and they own everything yourself. Has apartments in several farms, committed the management of the individual farm.
Financial newspaper described this shift last fall.
– When you purchase an entire residential farm, you usually get a discount . Now sold farms actually at a premium compared with buying the apartments individually, said adviser Christopher Paus at GVA CRE Norway, until recently known as Foss & amp; Co Næringsmegling.
The company had sold a small apartment building on Grünerløkka in Oslo. The eight apartments in Markveien 26 amounted to 458 square meters, without having any extraordinary standard.
– Several large, professional landlords helped to town, but then came a relatively unknown investor in and dragged this from 27 million, as we thought it was worth, to 30.5 million, said transaction Petter Christensen firm Finansavisen fall.
square meter price measured for P-space was 66 400 crowns. It is significantly higher than the average in the district, which according to the latest statistics from the Real Estate Norway was 60 900 million when the article was written at the beginning of September last year.
The foundation of great fortunes
– there are many of the very richest in Norway that has built up on apartment buildings, notes Langtind.
He highlights especially two real estate investors who own many apartment buildings in Oslo and which has been going for many years. It’s Ivar Tollefsen and Paul G. Gundersen. Last year Rated capital that the two have fortunes respectively 9.3 and three billion on Norway’s 400 richest list.
– These guys were some of the earliest who began buying after rent control was abolished, and they have done good business. There are many who should not have been sold. They had perhaps made femgangeren on farms if they had retained. Yesterday I spoke with Ivar (Tollefsen, ed.’s Note.). He laughed when I asked if he was going to sell anything. Just call, he said, but I’ll just buy more! tells Langtind.
Edgar Haugen started according Langtind with a problem project at Sinsen as a bank gladly ditched. It consisted of over 250 apartments. The investor pays reportedly no more than around 200,000 kroner. apartment. As the value of apartments rose, got Haugen borrowed money and bought more property. Today he has an estimated fortune of 4.7 billion.
In 2005 sold Langtind a large corner apartment building of 3,000 square meters in Thorvald Meyers gate at Grünerløkka. He had considered it to 21 million. The price ended at NOK 33 million.
– The seller, a lady who had inherited the farm, wondering if it was possible to sell the farm at all. I was new in the game and was a little unsure though. It came 50 pieces, he says and laughs a little.
According to VG gained broker even 600,000 kroner from the sale.
The buyer was Edgar Haugen. He shared the apartments and sold them. Warehouses kept him a while before he sold it to Spabo group, owned by Spandow family. They own almost half of all commercial property in Grünerløkka, and last year was Thor Spandow listed 850 million on Kapital enrichment list. Today estimates Langtind that the farm has a value of 80-100 million.
In the years before the financial crisis in 2008 sold Langtind around 15 apartment buildings a year.
– House prices rose very in the period. The move increased. Demand rose, and it was built small, he said.
During and after the financial crisis was the quieter times before the market thus blossomed again for a couple of years ago.
– There is little of the same race now. Now there are almost zero interest rates as well, says Langtind, which sold 13 apartment buildings last year.
The most expensive, which was sold for well over 100 million, is located at the corner Waldemar Thrane street and Ullevålsveien at St. Hanshaugen . Seller was Tandberg family in Asker, who need cash to build out in Heggedal in Asker. The buyer was Paul G. Gundersen, which is the largest in apartment buildings in Oslo West.
Price Clamp 20-160 million.
Tinholt estimates that the cheapest apartment buildings is about 20 million.
– It’s smaller apartment buildings in the east. The cost to refurbish there as well, he said.
Langtind has the mission to sell a “huge” farm in Seljeveien on Loren. There are 24 apartments that were built in 2009. The price tag is 120 million.
– It is perhaps a bit much, admits he about farm located outside on the Finn.
– Is price the top here?
– No, the cost of borrowing money will even more down. The required return that investors have, adhere quite smoothly. You may find that it starts to approach a top price levels. In 20 years, they are certainly twice as much worth all together, he said.
In the pipeline His is also an apartment building at Majorstuen as Langtind has valued at 160 million.
– it is the most expensive apartment building at Majorstuen in private ownership, he said.
As this article goes to press, get Langtind confirmed that he will be selling a “magnificent” farm in von der Lippes street at Adamstuen. The owner is Tønsberg-woman Anna Elisabeth Amlie, which according Infoland inherited the farm from his father in 2014. He bought the farm on five floors in 1973. The area is about 2,000 square meters. On the plot that measures a scant measure stands seven garages.
– It was commissioned in von der Lippes street, writes Langtind in a text – with a picture sign of a champagne bottle.
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