Norwegian Properties to become largest Nordic RE player

Norwegian Properties is set to become the largest real estate company in the Nordic region following its NOK 3.3 bn (EUR 410 mln) bid for Norgani Hotels. Over 60% of Norgani's shareholders pre-approved the NOK 82.5 per share offer when it was announced on 14 August, and Norwegian Properties said it was on course to achieve the target of 90% backing by early September.

If successful, the takeover of the fifth largest hotel company in Europe would be the largest ever real estate transaction in Norway. The deal would also transform Norwegian Properties into the largest real estate company in the Nordic region, Norwegian Properties claimed. The Oslo-based company has built up a real estate portfolio worth NOK 21 bn since it was established in April 2006. Norgani Hotels, also based in Oslo, owns a portfolio of 72 hotel with a total of 12,500 rooms in Sweden, Norway, Denmark and Finland. The hotel group is valued at NOK 10 bn.