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BWG Homes ASA (OSL:BWG) (Oslo 1 October 2008) Block Watne owned by BWG Homes ASA, offers an interest rate guarantee to those who purchase and take over a home by 31 December 2008. The interest rate guarantee is an interest rate ceiling agreement based on 1 month NIBOR nominal interest at 6.5 per cent. If the 1 month NIBOR rate exceeds 6.5 per cent, Block Watne pays the difference.
The interest rate guarantee which is independent of the customers' home financing, applies to the entire contract price and runs for five years.
- We experience that customers are taking more time to make a decision to buy. Higher interest rates have created uncertainty, and the banks now demand the customers to sell their present home in advance of granting loans. We want to secure our customers' investment in a new home, and offer an interest guarantee agreement for purchasing houses in Block Watne development projects, comments CEO Ole Feet in Block Watne.
- Our only demand is that the dwelling must be paid for and taken over by 31 December 2008. The interest rate guarantee agreement offered gives our customers more financial security and makes the loan repayments more predictable. At the same time our customers will still enjoy the benefits of a floating rate when interest rates decline, Ole Feet emphasises.
Facts about the Block Watne interest rate guarantee agreement - Block Watne guarantees a maximum interest rate ceiling of 6.5 per cent for the entire contract price - The interest rate guarantee is linked to 1 month NIBOR nominal interest - The interest rate guarantee runs for five years, from 1 January 2009 to 31 December 2013 - The interest rate guarantee agreement applies to purchases of houses in Block Watne's development projects - The dwelling must be paid for and taken over by 31 December 2008 - If 1 month NIBOR nominal interest exceeds 6.5 per cent Block Watne pay the customer the difference - The interest rate guarantee agreement is not linked to customer relationships with specific banks - It does not necessarily call for having loan financed the property through a bank - Payment can be made direct to the bank that has made the loan if so preferred - Block Watne manages the scheme free of cost
Further information from: Ole Feet, CFO, Block Watne AS, +47 23 24 60 32, +47 900 91 230 Elisabet Landsend, Corporate communications, BWG Homes ASA, +47 23 24 60 40, +47 952 21 918
BWG Homes develops, sells and constructs residential homes in the Nordic region. The present brands owned by the group are Block Watne and Hetlandhus in Norway, Myresjöhus and SmålandsVillan in Sweden. BWG Homes sells and constructs homes through own residential projects and for individual customers. Ranked as a leading residential house builder in its markets, the group annually completes more than 2 000 new homes. BWG Homes has 1 270 employees. In 2007 the pro forma turnover was NOK 3.2 billion.
