SPDE acquires retail project in Norway

Newly-established Scandinavian Property Development (SPDE) has signed an agreement to acquire a development project in Haugesund in Norway for EUR 27 mln. The project, dubbed 'Flotmyr', is predominantly retail and commercial and is part of the Haugesund Arena, home to a new stadium for the Haugesand soccer team as well as concert facilities. Commercial and retail outlets will occupy some 69,000 m² of the total 69,100 m² programmed for development; 30,000 m² has been earmarked for housing and a further 19,300 m² will be devoted to parking. SPDE can also opt to buy adjacent properties, subject to approval by the local authorities.

Haugesand is the retail hub for the entire region and its inhabitants spend more per head than anywhere else in Norway. The city has a solid labour market, unemployment stands at less than 2% and the nearest shopping centre is 5 km away, with no nearby development projects that could compete for custom. CEO Stein Haugbro said that SPDE is looking forward to an IRR of over 20%. 'The acquisition underlines our ambition of acquiring future-oriented projects in high-growth regions of Scandinavia. Haugesund is a city characterized by high activity within oil, gas, energy and offshore, all very important sectors of Norway.' The transaction is expected to be finalised by the end of January 2008, with completion of the project scheduled for 2011-2013.

Norwegian real estate company Scandinavian Property Development listed on the Oslo Bourse on 1 November this year.