Aker ASA: Aker to establish a new property development company with partners
Aker ASA's wholly owned subsidiary Aker Capital AS ("Aker") has entered into an agreement with Geveran Trading Co. Ltd (a company indirectly controlled by trusts established by John Fredriksen for the benefit of his immediate family) ("Geveran") and Joh Johannson Eiendom AS to establish a residential real estate development company, FP Bolig Holding AS ("FP Bolig").
"This is a new strategic step for Aker's real estate development. We are strengthening our real estate initiatives by entering into joint ownership with two prominent investment companies", said Øyvind Eriksen, President & CEO of Aker ASA.
Under the agreement, FP Bolig will acquire three real estate land areas at Fornebu from Aker. Over a ten-year period, it is expected that FP Bolig will develop approximately 80,000 square meters of residential properties, corresponding to around 1,000 apartments. Two of the projects will be owned and developed by a 50-50 joint venture between OBOS and FP Bolig, while the third project will be fully owned by FP Bolig.
Aker and Joh Johannson Eiendom AS will own 37.55 per cent each of FP Bolig, while Geveran will own the remaining 24.9 per cent.
"The partnership with Joh Johannson Eiendom, Geveran and OBOS gives us the opportunity to further develop Fornebu and strengthens our financial capacity to evaluate new opportunities", said Eriksen.
As part of the transaction, Aker's assets have been valued at NOK 828 million on a debt- and cash-free basis, which implies an equity value of approximately NOK 580 million. The transaction is expected to release approximately NOK 360 million in cash for Aker and will realize an accounting gain of approximately NOK 190 million to be booked in the second quarter of 2018.
Upon completion of the transaction, Aker's real estate assets will primarily comprise its 37.55 per cent ownership in FP Bolig, other commercial properties and land areas at Fornebu and in Aberdeen, and a portfolio of late-stage residential projects in Norway.
Since its establishment in 2012, Aker's real estate company has developed and sold properties with a total market value of approximately NOK 7 billion.
Pareto Securities AS acted as financial advisor to FP Bolig.
For further information, please contact:
Per Kristian Reppe, Investment Manager & Head of Investor Relations
Phone: +47 24 13 00 67
Mobile: +47 900 33 203
Atle Kigen, Head of Corporate Communications
Phone: +47 24 13 00 08
Mobile: +47 907 84 878
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.