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Scandinavian Property Development ASA (OSL:SPDE) Scandinavian Property Development ASA (SPDE) has, on behalf of subsidiary company Fornebu Boligspar AS, decided to delay construction start for Storøya (section 6.0) at Fornebu. SPDE will reconsider the question in the spring 2009, regarding a possible construction start in the summer 2009.
The decision is in line with the recommendation from the board of Fornebu Andelseierforening (FAF). The reason for the postponement is that both FAF and SPDE are unsure about the current market conditions for the development of new residential property.
- Independent assessments from two real estate agents and two appraisers show that there has been very little turnover of newly developed residential property in the past six months. This makes it difficult to assess the value of the residences in section 6.0. In addition, several market players expect a decrease in sales prices in the months to come. SPDE therefore considers the market situation to be too weak compared with the total construction cost to justify a construction start as of now.
- SPDE and FAF have a common interest in developing good residences at Fornebu with a profit. SPDE is continuously monitoring the market, and is seeking a close dialogue with the board of FAF regarding the further development, says CFO Are Njåstein.
For further information on SPDE, please go to our website: www.spde.no
