Spabo Eiendom sells Oslo apartments for 500 million NOK

Spabo Eiendom is selling approximately 70 apartments in western Oslo, with a total estimated value of 500 million NOK, due to declining profitability in the rental market. The company has already sold 40 units worth 250 million NOK and is in the process of selling an additional 25 to 30 units.

Jan Spandow, owner and chairman of Spabo Eiendom, attributes the loss of profitability to current tax levels, specifically wealth tax and dividend tax. He noted that these taxes have reduced returns from 2.5 percent to just 0.7 percent. While the company has hedged against interest rate increases, Spandow stated they cannot protect themselves against unstable political conditions.

Spabo Eiendom, which has operated since 1987 and manages properties in Oslo and Ålesund, reported a net loss of 5.8 million NOK last year due to operating and interest costs. This move reflects a broader trend in Oslo, where one-fifth of all corporate-owned rental properties have disappeared since 2019.