Scandinavian Property Development acquires office development project K2 - Fornebu (NO)

Scandinavian Property Development ASA has entered into an agreement for the acquisition of the development project K2 - Fornebu. The office development project consists of 28,000 m² of office development property located between Telenor Head Quarter and Radisson SAS Fornebu Park Hotel at Fornebu, just outside Oslo. The purchase price is approximately NOK 280 million (c. €33m). Today, K2 - Fornebu is owned by Telenor Eiendom Holding AS.

The transaction grants Scandinavian Property Development ASA the rights to develop 28,000 m² of office property.

The Fornebu area is one of the largest and most important development areas in Norway. The area is situated in the outskirts of the capital city of Norway, Oslo. Office rental prices are rapidly increasing in the Oslo area. The purchase of K2 - Fornebu underlines Scandinavian Property Development's ambition of acquiring future-oriented projects in central, high-growth regions of Scandinavia.

"Scandinavian Property Development is very satisfied with the purchase of the office development project K2 at Fornebu, close to the city of Oslo. The project is located between Telenor Head Quarter and a Radisson SAS Hotel, and other important environments as IT Fornebu and our company's major residential project are situated near by. The project is estimated to yield an IRR of more than 20% and the office premises will surely be very attractive among blue chip tenants and property investors. The office rental prices have already increased by approximately 10% during the 1st six months of 2007. We already have a lot of knowledge about the market and the Fornebu area in general which we can benefit from. This makes Scandinavian Property Development a highly competent developer of this office project," says Stein Haugbro, Chief Executive Officer of Scandinavian Property Development ASA.

The transaction is expected to be completed by the end of November 2007.

Source: Scandinavian Property Development

Related News