Aberdeen Property Investors and Scandinavian Property Development ASA (SPDE) have today 19 May 2008 agreed upon certain changes in their relationship.
Aberdeen has established a broad organisation for SPDE and initiated an extensive property development program. At the same time, the stock exchange listing of SPDE and changed marked conditions have resulted in new and different challenges. As a result thereof, the parties have decided to make certain contractual changes.
The contractual changes imply that the existing management agreement terminates as per 30 June 2008. The management agreement contains certain provisions as to payment of termination fees, and SPDE will pay to Aberdeen NOK 49 million in connection with termination of the agreement (equal to about NOK 0.6 per share). At the same time SPDE and Aberdeen have entered into an agreement governing responsibilities for employees related to SPDE.
SPDE wishes to continue its co-operation with Aberdeen regarding the development project in Odense in Denmark, with a success incentivised fee structure. SPDE will also in a transitional period purchase certain management services regarding inter alia financial services from Aberdeen. Such services will be purchased on ordinary market terms. The parties have entered into separate agreements pertaining to these services.
Aberdeen and SPDE will seek to implement these changes as soon as possible. It is both parties aim to work for good results in SPDE and to make the values of SPDE visible.