Petter Witnes is becoming a significant player in the rental market in Sarpsborg. He is involved in 280 rental units through various companies.
Brusemyrlia Project
In Brusemyrlia, the developer is well underway with the work of 91 rental apartments. If everything goes according to plan, the first ones will move in at the end of 2025. Sarpsborg municipality has, through a long-term agreement, the right to refer people and families to 40 percent of the homes.
"We are a growth municipality and need more housing," says Mayor Magnus Arnesen.
Last Wednesday, he received an introduction to the Brusemyrlia project from developer Petter Witnes. Also present were the Minister of Municipal and District Affairs Kjersti Stenseng (Ap), representatives from Husbanken and a group of people connected to Sarpsborg municipality.
| Date | Event |
|---|---|
| 02.04.25 07:36 | Article Published |
| 02.04.25 01:00 | Odd Arne Ruud |
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The Details
The 91 rental units under construction are the result of a collaboration between Sarpsborg municipality, Husbanken and Brusemyr Eiendom AS. The latter is a company where Petter Witnes and Arton Pestisha are owners.
In Brysemyrlia, there will be 17 buildings consisting of 91 housing units.
Allocation Agreement
The municipality has the right to refer people and families to 40 percent of the new rental apartments in Brusemyrlia.
"We have already received several inquiries from elderly people in the neighborhood who may be potential tenants for these homes," says department head Robin Brynildsen at the housing office in Sarpsborg.
Homes with what is called are intended for housing applicants who, for various reasons, fall outside the ordinary housing market.
This may be due to challenging finances, a changed life situation, illness or separation.
The allocation agreements, which the municipality enters into with several developers, help replace the rental apartments that the municipality has owned.
SA has written several articles about the sale, which will be carried out over several years and provide an expected income of 900 million kroner.
The apartments are primarily intended for people who do not need follow-up from the municipality.
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Petter Witnes's Plan
Petter Witnes completed a similar project at Hafslundsøy in 2020. There, 40 apartments were rented out in less than a week.
"I feel that we, in cooperation with Husbanken and the municipality, are in the process of creating a new market on the landlord side in Sarpsborg," he says.
The municipality currently has 12 of the apartments at Hafslundsøy.
Witnes is also planning a similar project in quarter 64 in Sarpsborg city center.
"We are experiencing particularly increasing interest from the elderly who are considering renting instead of owning, this to free up both time and equity for other purposes. Many apartments have already been reserved, and as soon as we get confirmation of the completion date from the contractor, we will start both the marketing of the project and the conclusion of lease agreements," says Witnes.
More Players
Witnes is not alone in Sarpsborg in developing homes with allocation rights.
At Borgenhaugen, Bergheimsvingen AS is in the process of completing 28 apartments. 11 of these can be used by the municipality.
In Sarpsborg, there will likely be a total of 236 allocation apartments in 2025, of which the municipality has an agreement on 110 of them. The first agreement was entered into with Østfold Boligutvikling AS in 2012.
Through various companies, Witnes is now involved in 158 apartments with an allocation agreement in Sarpsborg municipality.
Funding
In rental apartments with allocation agreements, the developer/landlord can apply for a loan from Husbanken to build, buy or convert existing buildings for rental purposes.
"The standard of these homes will be as good as what we have on owner-occupied homes," says Per Olaf Skogshagen from Husbanken.
Husbanken offers loans that can cover up to 85 percent of the market value for rental apartments with an allocation agreement. The loan can have a repayment period of up to 50 years, and it is possible to fix the interest rate for up to 20 years.
The total cost with the apartments in Brusemyrlia has a price of just over 300 million kroner.
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The apartments that are coming for rent are in size from 50 to 120 square meters, with 1 to 4 bedrooms. Monthly rent will be between 12,900 and up to 19,000 kroner.
"Here, there are no other common expenses you have to take into account," Witnes explains.
What is added is expenses for TV, electricity, internet and fees for water and sewage.
The remaining 60 percent of the rental apartments are a pure addition to the rental market and are rented out in the open market with an offer of a minimum five-year lease.
The lease agreement is entered into directly between the tenant and the landlord. The parties have the same obligations, responsibilities and rights as in an ordinary lease.
Market Analysis
The municipality can ensure that a Nav guarantee or a corresponding municipal guarantee is given as security for the lease.
Both Witnes and Brynildsen are concerned with creating good living environments, and will strive to allocate the tenants to where they believe they will thrive best, and fit in well.
"Here, people will live who you would naturally meet in any other residential environment," says Witnes.
"The housing market in Sarpsborg has become difficult in recent years. In the years to come, we will need several different types of housing," Brynildsen adds.
Husbanken sets requirements for professional operation and management in the company, and the landlord must show that they have the purpose of owning, managing and renting out homes to those who can rent with an allocation right. The rental apartments must be suitable for the target group, and should be spread in ordinary and good residential environments.
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