Scandinavian Property Development (SPDE) said on Tuesday it has secured extensions on loan agreements with the municipal authorities in Oslo and Norwegian financial services company Storebrand for the mixed-use development at Fornebu, Norway. Under the new agreement with the Oslo authorities, the partial payment due on 1 July 2008 has been postponed to 1 October 2009. A separate loan with Storebrand for the Hundsund project at Fornebu has been extended from 30 June 2008 to 31 December 2009.
Scandinavian Property Development (SPDE) said on Tuesday it has secured extensions on loan agreements with the municipal authorities in Oslo and Norwegian financial services company Storebrand for the mixed-use development at Fornebu, Norway. Under the new agreement with the Oslo authorities, the partial payment due on 1 July 2008 has been postponed to 1 October 2009. A separate loan with Storebrand for the Hundsund project at Fornebu has been extended from 30 June 2008 to 31 December 2009.
SPDE said the due dates had been extended to tie in with the progress of the projects. 'I am satisfied that we now have this under control in an exigent credit market,' said Are Njastein, CFO of SPDE.
The Fornebu development involves more than 5,000 residential units and over 100,000 m2 of commercial space, including offices, a shopping centre and a hotel. Work on the Hundsund residential project, which forms part of the Fornebu development, started last week.
