Paid 133 million for the plot – selling luxury flats for half a billion

Bonum is building and selling 20 luxury flats above two tennis courts in Oslo's most prestigious west end. The most expensive include ten years' membership of Oslo Tennisklubb

At the end of 2018, Bonum secured two tennis courts from Oslo Tennisklubb (OTK) at fashionable Madserud in Oslo.

The purchase price was 120 million kroner, whilst the total consideration ended at 133.5 million kroner, according to the land registry.

Now the property developer is putting up for sale 20 luxury flats with a combined value of 457 million kroner on the property.

This is evident from websites that have so far only been accessible to people who have registered their advance interest in the project.

"The area borders the magnificent Vigeland installation in Frognerparken, which is considered amongst Norway's most impressive parks. In addition, the new Oslo Tennisklubb will be the nearest neighbour," it states.

Rejects super profit

Possible parking spaces in the underground garage at 1.2 million kroner each are additional, informs Privatmegleren, which is facilitating the sale.

According to public documents, 35 parking spaces are planned. This increases the project's sales value from 457 to 499 million kroner.

Even though there is a large gap to the plot price of 133.5 million kroner, high construction costs and project quality contribute to squeezing the profit, according to Bonum.

"We obviously wouldn't have started if we were losing money, but the construction costs are considerably higher than for a normal apartment project with the qualities we have put in here," says project manager Eskild Skåttun at Bonum to E24.

Nor is Bonum deterred by the collapse in the new housing market, which saw the market down 38 per cent in May compared with the same month last year.

"The new housing market is challenging, but we always have faith in good projects with location and quality like this," says the project manager.

Tennis membership

The 20 flats designed by R21 Arkitekter are distributed across four buildings with one to two flats per floor, and a total of 2,440 square metres gross floor area (BRA).

The flats vary from 84 to 165 square metres (BRA) with fixed prices from 14.5 million to 37.5 million kroner. The most expensive flats are the penthouse flats, with square metre prices of up to 264,000 kroner, including membership of OTK.

"Buyers of the penthouse flats will be able to take advantage of a ten year membership of the club, which provides a unique opportunity for recreation and sport right on the doorstep," it states in the marketing on the project's websites.

Estate agent Fredrik Dyve at Privatmegleren confirms that around 270 pre-registered interested parties have now had the project launched and the opportunity to buy flats.

Pre-registered interested parties have since Wednesday been able to register their purchase interest, with a deadline on Thursday at 10.00.

"We have already sold one and soon two, and there is a process with several," says Dyve to E24.

He notices little sign that tougher economic times are dampening interest.

"I would say it's an incredibly exciting and good project that I experience the market is demanding," says Dyve.

Notification of acceptance of purchase offers is sought to be decided on Friday 16 June at 16.00, where seniority in the housing cooperative USBL gives priority, it is pointed out in an email from Privatmegleren.

"After clarification of pre-emption rights, a draw will be made if there are multiple bids on the same flat," it states.

Thereafter, the project is expected to be offered on the open market. Estimated move-in is the third quarter of 2025.

Dispute

OTK sold the tennis courts and surrounding areas to Bonum in December 2018 to finance the construction of a new tennis hall and new tennis courts.

The development plans were the subject of a legal dispute with the neighbours, which the latter ultimately lost.

As previously reported by E24, the sale price of 120 million kroner for the nearly 3.2 acre property appears in a presentation to the annual meeting of the tennis club in 2020.

As also previously reported by E24, a financially hard-pressed OTK also sold a tennis court to investor Øystein Stray Spetalen in 2012–13 for 10 million kroner.

Subsequently, area additions were made in two rounds, which brought the total price to around 12.2 million kroner for the now 994 square metre property.

The investor began in autumn 2021 with plans for a luxury housing project with construction of seven flats and a combined gross area (BRA) of 1148 square metres on his tennis court.

Estate agents, including the aforementioned Dyve, have previously estimated to E24 that it should be possible to achieve square metre prices of 150,000 kroner for flats with high standards, lift, terrace and parking in the area, which is amongst the capital's most prestigious.