Sale of non-strategic assets in Rogaland
Solon Eiendom (Solon) has signed binding agreements to divest its ownership interests in all landbank companies in Rogaland («landbank companies» in Norwegian being “tomteselskaper”). The sold assets sit outside Solon’s core focus area and release both capital and resources to be focused on core business. The sale will generate NOK 118 million in liquidity and a profit of approximately NOK 23 million in the third quarter of 2021. Solon acquired the ownership interests in April 2020 from former Kruse Smith Eiendom AS, and the ownership interests consist of several partly owned landbank companies, where Solon’s ownership has ranged from 18 — 50 percent. Landbank companies, a common type of joint ventures in the Rogaland area, are constructed to lead zoning processes, establish necessary infrastructure, and provide its owner with properties ready for construction. The legal structure has not allowed Solon to put its unique fingerprint on conceptualization and architecture. The divested portfolio consists of seven different joint ventures and a potential for approximately 985 units. Solon’s shares in the joint ventures are sold to Øster Hus, OBOS Block Watne and Øgreid Eiendom. Commenting on the sale of non-strategic assets in Rogaland, Solon’s CEO Andreas Martinussen says: “The divestment is totally in line with our strategy going forward and is a result of the recently concluded strategic review. Solon has decided to go back to its roots, and focus on high quality projects on attractive locations but with significantly higher volume and growth ambition both in Norway and Sweden. The divested units are detached house projects with a long horizon and low margins. Also, the number of units divested from our landbank is significantly outnumbered by the newly acquired projects from SBB i Norden AB. Our total landbank is therefore not reduced, but through the recent transactions improved in both quantity and quality. The sale shows that Solon is successfully moving forward in implementing its strategy.» For more information, please contact: Andreas Martinussen, Chief Executive Officer Phone: +47 400 00 405, e-mail: email@example.com. This information is subject to disclosure under the Norwegian Securities Trading Act, Section 5-12.