Kleppierre, jointly with Entra has signed a sale and purchase agreement to acquire Oslo Shopping Center. The companies have agreed to buy the shopping center for $578 million.

Oslo Shopping Center is a retail and office complex which is located at the heart of Norway's capital. It generates among the highest retailer sales per sq.m. in Scandinavia. According to Bloomberg, the companies will split the center's retail and office assets and divide the parking spaces after buying the property. The property will be bought from DNB ASA and Norway's Steen & Strom Company which is controlled by Kleppierre will contribute 344 million Euros ($379 million) to the purchase price.

Primly located in Oslo's mail transportation hub, Oslo city shopping center has the highest footfall in Norway. Also the city's urban area counts more than one million inhabitants with the fastest growing demographic forecast.

According to Property Magazine, Steen & Strom will buy 67% of Oslo City holding company (344 million Euros) while Entra will acquire the remaining 33%. Through a capital injection of its shareholders - Kleppierre and APG, the company will finance 53% of the acquisition in equity. This will be proportionate to their existing stakes. The remaining 47% of the acquisition will be through external debt and available cash.

In a report by Reuters, the impact of transaction on Kleppierre's consolidated loan to value  will be limited to circa 50 bps. Also the closing is expected by the end of this year 2015 Source text for Eikon.

Kleppierre is a Paris based company that owns large retail centers in more than 15 countries across continental Europe. Kleppierre reported in the month of October that it has seen 41% increase in revenue for the first nine months of the year.

According to a statement, Oslo City has 33,000 square meters of retail space and 34,000 square meters of office space.