OSLO: Norwegian Property, through NPRO Holding AS, buys Veidekke Eiendom together with Fredensborg AS and Union Real Estate Fond III Holding AS.
NPRO and Fredensborg will be equal partners with 42.5% each, and Union will own 15% (together the investor group). In total, the Investor Group becomes 100% owners of Veidekke Eiendom AS and Veidekke Eiendom AB.
The Investor Group will together fund NOK 2.6 billion in new equity, and Veidekke Eiendom will be financed with 5.7 billion of debt. The transaction is expected to be completed during September 2020.
At the end of 2019, Veidekke Eiendom had 1,557 apartments under construction and a land bank of about 15,500 units in Norway and Sweden. The main part of the landbank is situated in the largest cities in Norway and Sweden, with an emphasis on Eastern Norway and the Mälardalen.
CEO Bent Oustad states: “The investment is in line with Norwegian Property’s communicated ambitions and strategy for growth, and the Group’s low LTV is a good platform for investments. We consider this a good opportunity for Norwegian Property to further develop the business in collaboration with industrial and financial partners with whom we can share the development risk. We are very pleased with the acquisition of a company with competent employees and a large site bank with many, well-advanced projects in both Norway and Sweden.”
Norwegian Property is a focused and fully integrated property company with commercial properties located mainly in the Oslo area in Norway. The portfolio is characterized by central location and attractive premises high quality tenants.