Fornebu to sell Stavanger project for EUR 35m

Norwegian listed property company Fornebu Utvikling (FBU) has signed a preliminary term agreement for the sale of its Hinna Park project company in Stavanger for NOK 287 mln (EUR 35 mln).

The buyers are Camar and Eføy Investering. Camar, owned by John Arild Ertvaag and family, is an investment company within oil service related activities, trade and real estate. Eføy Investering is owned by Ole Ertvaag. The main holding is ownership in HitecVision.

Hinna Park is one of the largest development projects in the Stavanger-region and has been owned by FBU since June 2007. On the basis of the development projects that already have been completed and the real estate development that will be realized, the area will consist of more than 120,000 m² for residential and commercial property.

The agreement is a result of a targeted sales process following the company´s strategy to focus its activities to the Fornebu area, FBU said.

The transaction includes acquisition of all remaining assets regarding Fornebu Utvikling's activities in the Stavanger region. The transaction is expected to be completed in January 2011 and will be settled in cash.

The final sales agreement is dependent upon satisfactory due diligence and approval by the two parties' board of directors.

Pangea Property Partners acted Fornebu Utvikling.