Listed property firm Norwegian Property (NPRO) has acquired Olso-headquartered real estate developer Veidekke Eiendom in a joint deal with Fredensborg AS and Union Real Estate Fond III Holding.
Financial details were not disclosed.
The investor group will together inject the business with NOK 2.6 bn (€242.2 mln) in new equity. In addition, Veidekke Eiendom will be financed with NOK 5.7 bn of debt. The transaction is expected to be completed in September 2020.
NPRO and Fredensborg will be equal partners with 42.5% each, while Union will own 15%, together becoming 100% owners of Veidekke Eiendom AS and Veidekke Eiendom AB, which comprise Veidekke Eiendom.
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.
NPRO CEO Bent Oustad said: '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.'
