Earlier on Wednesday, Entra said the value of its property portfolio had increased just over 8% since it reported its third quarter results in October.

"SBB regrets to inform that the due diligence condition to the Offer will not be satisfied or waived and the Offer will thus lapse," the Swedish real estate firm said in a statement.

SBB questioned Entra's reporting practices after the increased valuation, saying it no longer had "sufficient comfort to rely on historical reporting from Entra".

"The updated valuation is not in line with past practice and, in SBB's view, not in line with the Norwegian market development in general," it said.

Entra rejected SBB's Nov. 24 bid, which was trumped by rival Swedish real estate firm Castellum just days later.

Entra's assets include the 26-storey Posthuset office block in Oslo, the Norwegian capital's second tallest building.

(Reporting by Colm Fulton; Editing by Simon Johnson)