The company has made its first investment in the principal development projects in housing and commercial property at Fornebu, the former Oslo airport, for around EUR 600 million.
The contract covers over 500,000 sq.m. of building rights and involves six companies that are currently developing housing and commercial property in the area. Closing of the transaction is expected before the end of February.
Espen Klevmark, Managing Director of Aberdeen Property Investors in Norway and the group’s Head of product development comments:
”Through the founding of Scandinavian Property Development, we are creating a major new property development company. From day one, Scandinavian Property Development will have both a very attractive portfolio of property projects and substantial competence in property development.”
The strategy of Scandinavian Property Development, which will be administered and managed by Aberdeen Property Investors, is to take an active and leading developer role in Scandinavia in the areas of both housing and commercial properties. The company aims to establish a portfolio with a value of more than EUR 1.5 billion during 2007. Thereby the company will achieve a size and ownership structure that will make the company’s shares attractive and liquid. A decision will be made on stock exchange flotation in the course of 2007. Meanwhile, the company will be listed in the OTC market as soon as it is practically possible.
Dedicated key personnel with highly respected development and financial skills are already in place, and the company is currently looking at specific acquisitions in Sweden for the first quarter of 2007, to a value of EUR 450 million, to complement the Oslo acquisition. The return target for the investment company will be 20+% after tax and fees, based on a balance of major non-yielding development projects and yielding opportunistic property portfolios.
Ubbe Strihagen, International Director at Aberdeen Property Investors added:
“Scandinavian Property Development will complement Aberdeen’s other products in the Nordic region. We are very pleased to present this product in response to recent requests from Norwegian and international property investors for a large, liquid and focused property development company.”
He continues:
Our forecast for the Nordic region as a whole is very positive with out-performance of the European average of 9.6 vs. 7.0 total return p.a. before leverage, over the next four years (2007-2010).
For further information, please contact:
Espen Klevmark
Managing Director Aberdeen Property Investors Norway
Tel: +47 900 23 111
E-mail: espen.klevmark@aberdeenpropertyinvestors.com
Bård Bjølgerud
Director, SEB Enskilda ASA
Tel: +47 21 00 85 24 / +47 98 22 85 24,
E-mail: bard.bjolgerud@enskilda.no
Ubbe Strihagen
International Director, Aberdeen Property Investors Holding
Tel: +46 70 520 33 80
E-mail: ubbe.strihagen@aberdeenpropertyinvestors.com
Charlotte Barker / Tom Siveyer, Maitland Tel: +44 207 379 5151
About Aberdeen Property Investors
Aberdeen Property Investors is the specialist division of Aberdeen Asset Management plc, a global investment management group listed on the London Stock Exchange and managing over EUR 100 billion of assets.
Aberdeen Property Investors manages some EUR 10 billion in property investments through property funds and management mandates. The division has some 500 employees at offices in ten European countries. Clients are primarily institutional investors such as life and pension funds.
Aberdeen was named the leading Property Investment Manager; Globally, in Western Europe and in the Nordic & Baltic regions in the Euromoney Awards 2006 for Excellence in Real Estate.
Issued and approved by Aberdeen Asset Managers Limited, on behalf of Aberdeen Property Investors, authorised and regulated by the Financial Services Authority.