NIB lends to innovative Construction City office building in Oslo

NIB and the Norwegian real estate company Construction City Eiendom AS have agreed on a five-year loan for the building of the planned BREEAM-NOR Excellent certified office building Construction City at Ulven in Oslo, Norway.

The NOK 600 million (EUR 58.8 million) loan will co-finance the construction of the largest ever collaborative effort in Norway’s building and real estate industry, with a mission to drive collaboration and new solutions in the construction industry.

The loan project is eligible to be funded by NIB Environmental Bond proceeds.

Construction City will cover an area of 103,000 square meters and have tenants from across the entire value chain of the Norwegian construction industry. It will be the first of its kind in NIB’s Nordic and Baltic member countries. The construction began in October 2021 and it is scheduled for completion in 2025.

“We thoroughly appreciate the collaboration with NIB and are proud of their acknowledgement of one of the largest construction projects in Norway. Our aim is to develop a new arena for industry collaboration and innovation. Through our cluster, we will challenge industry players to address challenges jointly, and develop innovative and sustainable solutions for the future”, says Nils Morten Bøhler, Chairman of the board at Construction City Eiendom AS and CEO at OBOS Eiendom AS.

“By concentrating technology and skilled management, Construction City has the potential to offer several benefits and synergies that are likely to drive innovation and offer growth opportunities”, says André Küüsvek, NIB President and CEO.

The borrower, Norwegian real estate special purpose vehicle Construction City Eiendom AS, is a subsidiary of OBOS Eiendom AS.  OBOS is the largest housing developer in Norway. OBOS engages in the development and sale of homes and properties, banking and financial solutions, property management, real estate brokerage and other forms of service production in the housing and property sector. The organisation is a cooperative owned by its members and was established in 1929 to provide a solution to Oslo’s housing problems.

In 2020, NIB provided a loan to finance the construction of Oslo K, a 30,000 square metre BREEAM NOR Excellent office building in Kværnerbyen, Oslo.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact
Mr Patrick Nylund, Senior Client Executive, Industry, Materials & Real estate,
at +358 10 618 0329, patrick.nylund@nib.int

Mr Arild Moen, Communications Manager, at +358 10 618 0496, arild.moen@nib.int