Veidekke strengthens position in housing development in Sweden
(Thomson Reuters ONE) -
Veidekke Bostad AB acquires development option for 800 homes in Sweden from
Bouwfonds Property Development. This acquisition strengthens Veidekke's presence
in Sweden, particularly in housing development in the Stockholm region. "We
envision a major potential for Veidekke in housing development and housing
production in Sweden's three major city regions, and the acquisition of this
site portfolio is a part of this effort," says Arne Giske, Executive Vice
President of Property Scandinavia.
Dutch company Bouwfonds Property Development, one of Europe's leading property
developers, has decided to concentrate operations in the Netherlands, France and
Germany and has therefore approached Veidekke with an offer to buy its 50% share
in Bouwfonds Veidekke AB. This company was established in 2005, and by way of a
management agreement Veidekke Bostad has been responsible for project
acquisition, development, implementation and administration. As of 1 June
Veidekke will be sole owner of the company.
Veidekke Bostad will pay NOK 250 million for the shares, whereof NOK 140 million
is paid only upon approved zoning of one of the major projects. Upon
consolidation of the entire company, Veidekke's balance will increase by approx.
NOK 800 million, primarily financed through sales credits. The acquisition
entails that Veidekke's original share is valued at real value, i.e. approx. NOK
250 million (cf. IFRS 3), and the transaction thus provides a positive effect on
earnings of approx. NOK 140 million in Q2 2011.
Bouwfonds Veidekke AB was, as mentioned, founded in 2005 in cooperation with
Dutch company Bouwfonds, and has since its inception been owned 50/50 by
Bouwfonds and Veidekke Bostad. The company has a project portfolio of 1,600
building rights for homes, 1,400 in the Stockholm region and 200 in Gothenburg.
Among the 1,400 in Stockholm, there are 350 building rights on Östermalm, a
project being carried out in cooperation with Akademiska Hus for the building of
Kungliga Musikhögskolan. There are a further 350 building rights in central
Stockholm, in addition to 700 in Stockholm suburbs. These include 100 building
rights currently under production in Sollentuna. The portfolio also includes
550 building rights related to options.
"The entire portfolio will provide turnover of approx. NOK 6 billion, in
addition to major contracts for Veidekke for the next five to seven years. The
company's portfolio thus provides good potential for earnings in the years
ahead," says Per-Martin Eriksson, managing director of Veidekke Bostad AB.
For further information please contact:
Arne Giske, Executive Vice President, Property Scandinavia, mobile +47 905
89 526,arne.giske(at)veidekke.no
Jørgen Wiese Porsmyr, Executive Vice President and CFO, mobile +47 907 59 058,
jorgen.wiese-porsmyr(at)veidekke.no
Jørgen Michelet, Senior Vice President Finance/IR, mobile
+47 917 43 856,jorgen.michelet(at)veidekke.no
Veidekke is one of Scandinavia's largest contractors with 6,100 employees and
revenues of NOK 16.3 billion (2010). Activities include building and
construction projects, residential developments, asphalt plants, gravel and
aggregates, road maintenance and recycling. Our values are to be professional,
honest, enthusiastic and pioneering. Our goals for health and safety and the
environment are as important to us as our financial goals. Veidekke is
characterised by a decentralised organisational model with a strong corporate
culture and a high degree of employee involvement. Over half the employees are
co-owners, holding almost 20% of Veidekke's shares between them. The company is
listed on the Oslo Stock Exchange and has never declared a loss since it was
founded in 1936.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Fact Sheet:
http://hugin.info/172/R/1520078/456487.pdf
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Veidekke ASA via Thomson Reuters ONE
[HUG#1520078]
Unternehmensinformation / Kurzprofil:
Datum: 31.05.2011 - 11:57 Uhr
Sprache: Deutsch
News-ID 55159
Anzahl Zeichen: 4855
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Town:
Oslo
Kategorie:
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"Veidekke strengthens position in housing development in Sweden"
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