Background
We actively screen our portfolio to identify upgrade opportunities that enhance attractiveness and help avoid stranded assets. As part of our ESG strategy, we are committed to improving existing building stock. In this project, we assessed a 1990s office property that had a significant potential to reduce electricity consumption.

The Project

Our Norwegian real estate fund, Fokus Eiendomsfond Norge I, owns Brynsalléen 4 in Oslo, where we identified an opportunity to significantly reduce the electricity used for heating. As part of a comprehensive upgrade, we installed 20 geothermal wells, producing approximately 1,300,000 kWh annually. 

Additionally, the property houses a tenant who has a large server facility, which generates substantial surplus heat. By using this surplus heat for building heating, the property generates an additional 200,000 kWh per year. 

Project highlights include:

• Installation of 20 geothermal wells
• Usage of surplus heat from server facility

The Results:

Following these measures, the building’s energy rating improved from EPC E to EPC B, reflecting a significant reduction in purchased electricity and improvement in environmental impact. 

The total investment costs in geothermal wells and technical upgrades, net of public funded Enova support, was approximately NOK 10.7 million. 

The geothermal wells and surplus heat from servers will supply common areas in the building with approximately 1.5 MWh of heating per year. The added heat, which replaces electricity previously bought from the grid, is sold to the tenants at a price determined by spot electricity prices.  

Assuming a conservative long-term electricity price, the incremental income from the sale of surplus heat to tenants has a net present value in excess of NOK 20 million and a Return of Investment (ROI) in excess of 100 %.

Lars Flåøyen, Fund Manager Norway says: “This project represents a clear win-win-win scenario, combining strong financial returns, tenant benefits-, and environmental impact”.

Services provided:

• ESG services
• Project Management
• Asset Management
• Property Management