Norway. Construction City Eiendom AS

Date of agreement:18 Jan 2022
Country:Norway
Customer:Construction City Eiendom AS
Amount in NOK:NOK 600 million
Amount in EUR:EUR 58.8 million
Maturity:5 years
NACE sector / loan type:Real estate activities

This loan contributes to climate change mitigation: 100%

Financing from NIB Environmental Bond proceeds

NEB-eligible share: 100%

NEB category: Green buildings

Amount disbursed: EUR 24.6 million

Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds

Project

NIB provides a loan to co-finance the building of a BREEAM-Excellent office building at Ulven in Oslo.

The 103,000 square meters building will house about 4,500 employees from the Norwegian construction industry, hence the name “Construction City”. It will be the first of its kind in NIB’s Nordic and Baltic member countries. The construction began in October 2021 and the completion is scheduled for end 2025.

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

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 the Oslo borough of Kværnerbyen.

Fulfilment of NIB's mandate

Productivity
The Construction City project is the largest ever collaborative effort in Norway’s construction and real estate industry. Industry clusters are, attractive hubs for a creating knowledge and skills network across companies and verticals, and for improving industry performance. By concentrating technology, talent, and industry, several benefits and synergies are likely to drive innovation and offer growth opportunities.

The construction and real-estate industry is the largest onshore industry in Norway. Given a geographically dispersed and fragmented industry, collective innovation and cooperation will become a necessity for future international competitiveness.

Environment
The Construction City project plans to certify the buildings in accordance with the BREEAM-NOR Excellent green building certificate, which is the second highest certification class and evaluates the sustainability performance of the building. The expected annual net energy demand is 79kWh/m2, approximately 8.7 GWh/year, equivalent to energy class A.

Indicators for expected impact of the investment:

Productivity
-Vacancy rate
– Number of employees/ businesses based at the Construction City.

Environment:
– Certification level BREEAM and square metres constructed/certified
– Use of energy (kWh/m2 and MWh)

Sustainability summary

NIB has not identified any concerns.

Press release
20.01.2022

NIB lends to innovative Construction City office building in Oslo

Press release

NIB låner til Construction Citys innovative kontorbygg i Oslo