Fornebu Utvikling sold 90 housing units in the second quarter with a sales value of NOK 429 million. The revenues will be recognised when the properties are handed over to the customer. The sales were mainly related to the sales start of four new projects at Fornebu during the quarter.
Operating revenues in the second quarter 2010 amounted to NOK 236 million compared to NOK 335 million in the corresponding period last year. The revenues consist of proceeds from sale of properties, a public area and completed apartments at Fornebu.
The Group completed the announced sale of land to OBOS Nye Hjem AS for NOK 100 million, the sale of 50% of the shares in Veifor AS to Veidekke Eiendom AS, as well as a sale of land to Veifor AS representing an operating income of NOK 70 million for the Group.
Rising residential and commercial property values in Norway resulted in a net reversal of previous write-downs of NOK 50 million in the second quarter.
The operating income amounted to NOK 11 million, compared to a deficit of NOK 613 million in the second quarter last year.
The previously announced buyback of units in Phase 1 at Fornebu from unit holders was completed during the quarter and resulted in a payment of NOK 349 million, partly financed by a new loan of NOK 195 million. The buyback results in a NOK 405 million increase in inventory during the quarter. The unit holders has have withdrawn their lawsuit.
- CEO Morten Grongstad comments: "The market for sale of residential properties at Fornebu has been very good this year, and we are extremely pleased with the response we have received for the four new projects we started selling in the second quarter. This has also prompted us to bring forward projects in the second half of this year, and we feel that we are in a good position to benefit from the positive development in the demand for residential properties in Oslo and Akershus."
Please find Fornebu Utvikling's report and presentation for the second quarter and first half year 2010 enclosed.
For further information, please contact:
Morten Grongstad,CEO, tel: +47 99 15 39 05
Inger Lise Egeland, CFO, tel: +47 94 87 69 45
About Fornebu Utvikling
Fornebu Utvikling (FBU) is a Norwegian real estate company listed on the Oslo Stock Exchange. The Group develops and sells residential and commercial properties of high quality. Currently, the Group has development projects at Fornebu outside Oslo (Norway), Hinna in Stavanger (Norway) and Odense (Denmark).