Scandinavian Property Development listed on Oslo Børs (NO)

Scandinavian Property Development has announced that it is listed on Oslo Børs (Oslo Stock Exchange) with the ticker code SPDE as per 1 November 2007. "This is an important step towards our aim of becoming a leading Scandinavian property development player," says Stein Haugbro, CEO of SPDE.

Scandinavian Property Development is the company behind Norway's largest property transaction, the Fornebu land just outside Oslo, with a development potential of around 543.000 m² and 15.000 m² yielding properties. In addition, SPDE owns and develops Hinna Park outside Stavanger, consisting of 134.000 m² development potential, primarily commercial property. About 66% of SPDE's development potential is residential property and 34% is commercial property.

"SPDE is uniquely different from all other real estate stocks on the stock exchange. We are the only pure-play property development company on Oslo Børs, while the other companies primarily manage yielding properties. SPDE represents a unique opportunity for investors interested in property development exposure without being tied to the traditionally long time horizon in property development projects," says Haugbro.

Prime properties
SPDE describes itself as a company which develops the best part of the real estate market. The company points to Fornebu and Hinna as the two largest residential and commercial property projects in the two largest pressure areas in one of the world's strongest economies. The combination of population growth, urbanization and economic growth constitutes an exciting cocktail, not least for the future of Fornebu and Hinna Park.

"Fornebu and Hinna Park ensure a very solid fundament for SPDE and our further ambitions. Our aim is to become a leading Scandinavian property development player, and we continuously consider a number of projects. As soon as we find projects which satisfy our requirements, we will act. The wait does not have to be long," says Haugbro.

Strong macro trends
SPDE is not worried by the short term ripples in the real estate market. They argue that the macro trends for residential and commercial real estate in Norway is very strong, and no place are they stronger than in Oslo and Stavanger.

"SPDE will provide a high return. Our target is a pretax IRR of 20%+ over time. The strong macro trends underscore our confidence in this prognosis," says Haugbro.

The company has previously been traded on the OTC list and had in excess of 600 shareholders before the listing on Oslo Børs. The market capitalization of the company at the timing of listing is about NOK 3 billion. The listing is arranged by SEB Enskilda and ABG Sundal Collier

Source: SPDE

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