Real Estate
Return
By the end of 2023, the portfolio of Ferd Real Estate had a property value of NOK 11.5 billion, a decrease of NOK 78 million from 2022, corresponding to minus 1.9 percent. The main explanation for the decrease in value was increased yield levels and higher development costs for projects under development, changes in long-term interest rates, and departures during the period. The equity value at the end of 2023 was NOK 4.3 billion, an increase of NOK 189 million from the previous year.
Ferd Real Estate is a responsible and long-term urban developer. We preserve history, understand the present, and evolve for the future. With diligence, innovation, and a strong commitment to sustainability, Ferd Real Estate creates value beyond economic return.
Organisation
Ferd Real Estate has a dedicated team of 21 employees who encompass the core expertise within commercial, residential, and urban development, as well as asset management and investment, finance and marketing. In 2023, we strengthened the organisation with six new hires.
Market situation
Over the past year, the real estate industry has faced several challenges, including the energy situation in Norway and Europe, geopolitical turmoil due to the war in Europe, inflation, cost increases in the industry, and rising interest rates. The increased interest rates have diminished households’ disposable income and created uncertainty in the housing market.
Throughout 2023, residential property prices in Norway experienced modest growth, concluding the year with an overall price increase of 0.5 percent. In the areas where Ferd Real Estate has residential projects, the price trends for 2023 were mixed: Oslo saw an increase of 1.8 percent, while Lørenskog, Bærum, Asker, and Nordre Follo experienced declines of 2.6 percent, 2 percent, 2.8 percent, and 3.4 percent, respectively; Moss remained relatively stable with a slight increase of 0.1 percent.
The majority of residential projects in Ferd Real Estate’s portfolio have been in the development phase, situated in robust markets with planned realisation further into the future.
Additionally, Ferd Real Estate’s commercial properties are also well-positioned, with no office development projects scheduled for contracting before 2026 at the earliest.
Portfolio
Residential Properties
Humlehagen, Ensjø – 133 apartments and nine townhouses
By the end of 2023, 133 of 142 units were sold, with the handover of the homes set to begin in the first half of 2024. The project represents the final part of Tiedemannsbyen.
Kleven Gård, Bekkestua – 40 residential units
The sales launch for the project is planned for 2024.
Bergerveien, Vestre Billingstad – 420 apartments
The sales launch is set to begin in September 2024, with the first part being the Kobberkvartalet, comprising 235 apartments.
Bråtejordet, Strømmen – 185 residential units
All residential units in Phase B7 have been completed, with 25 units remaining unsold (comprising 15 townhouses and ten apartments). Phase B6 has been postponed until further notice. The project is a collaborative venture with Mestergruppen Eiendom (with Ferd Real Estate holding an 80 percent stake and Mestergruppen Eiendom holding 20 percent).
Skolekvartalet, Ski – 241 residential units
The project is currently under regulation and is jointly owned in a 50/50 partnership with Vinkl.
Trekantkvartalet, Ski – 215 apartments
The project is currently under regulation.
Høyda, Moss – 750 to 800 residential units
The project is currently under regulation.
Commercial Properties
Vitaminveien, Storo – 18,500 square meters
The project is currently under regulation, with construction anticipated to commence in 2026.
Trekanttomten – 18,500 square meters
The project is currently under regulation. The planning program was approved in the fall of 2023, and construction is expected to begin in 2026.
3KT, Trekanttomten – temporary use (2022-2025)
In the 2023 season, from April to September, the site welcomed over 50,000 visitors and hosted more than 100 different events. This led to a nomination for 3KT as Urban Project of the Year at the OMA Awards. In 2023, Ferd showcased two art exhibitions at 3KT. These included Jo Bentdal’s “Law of Instrument” and “Common Sensibility”, and Julie Ebbing’s “Dig a Pony”. Johannes Høie’s project is ongoing, with completion expected in spring 2024. In 2024, Eik Servering is set to assume responsibility for the temporary activities at 3KT after Flott Gjort AS went bankrupt in 2023.
Oslo Logistikkpark Gardermoen
In 2023, Ferd Real Estate realised its logistic property at Gardermoen.
Rental Properties
Hieronymus, Rådhuset – 12,500 square meters
The building, which was completed in 2023, is already 94 percent leased following the signing of three new lease agreements and the renegotiation of one existing lease in 2023. During the year, two new tenants were welcomed, and the building introduced new amenities including a fitness center, bicycle parking and a staff restaurant.
Brynsveien 14/Østensjøveien 16 – 13,600 square meters
Completed in 2019, the building is currently 87 percent leased.
Petersborghuset, Ensjø – 550 square meters
Leased to The Church City Mission (Kirkens Bymisjon), which operates the community house.
Blåswixveien 5, Lillehammer – 14,500 square meters
Leased to The Swix Concept Store.
The weighted average unexpired lease term (WAULT) for the commercial properties in the portfolio is approximately 5.5 years.
Marienlyst
In 2023, Marienlyst was designated as a separate business area, which led to the introduction of revised plans for the project. The project plan includes the construction of around 1,200 residential units, development and rehabilitation of the Broadcasting House covering 40,000 square meters, and approximately 20,000 square meters designated for commercial purposes. Construction for the project is scheduled to start in 2029.
Sustainability
For Ferd Real Estate to excel as a leading urban developer, meeting sustainability requirements is paramount. Integrating sustainability throughout our investment process and project cycle is vital—not only to uphold our responsibilities but also to ensure long-term economic profitability.
Historically, Ferd Real Estate has engaged with sustainability in various capacities across our property portfolio, development projects, and ongoing construction projects. With high ambitions for our sustainability initiatives, in 2023 we began developing a comprehensive sustainability strategy. To support this, an external consultancy firm was engaged to assist in conducting a double materiality analysis.
Based on the EU Directive for sustainability reporting, the analysis evaluated how Ferd Real Estate impacts and is impacted by various sustainability themes. Through an in-depth examination of Ferd Real Estate’s value chain activities and other relevant insights, the company’s impacts, risks, and opportunities within each topic have been identified and mapped. As a result of this process, we have identified significant sustainability topics and further defined four strategic focus areas that will drive Ferd Real Estate’s future work on sustainability: the development of climate-friendly and resilient buildings, efficient and conscious resource utilisation, social responsibility, and ensuring a responsible value chain.
Future prospects
Ferd Real Estate commands a diversified portfolio that includes urban development and residential projects, as well as commercial properties strategically located within Oslo’s Ring 3 area, close to public transportation hubs. This advantageous positioning is set to drive value creation into 2024 and the years that follow. Concurrently, Ferd Real Estate will pursue new investment opportunities that can leverage Ferd’s investment capacity and competitive edge. The primary focus will be on office properties and residential projects within core growth areas that have robust public transportation access within the Oslo region. A strategic approach to risk diversification at the corporate level, in combination with operational agility and a long-term perspective, enables Ferd Real Estate to adopt a more development-oriented stance than its industry peers. This provides Ferd Real Estate with a competitive advantage as an urban developer.