INCUS INVESTOR ASA - Strand Municipality considering the purchase of properties from Scana Property

 

Referring to the press release from Strand Municipality on 31 May 2016 where the municipality informs that they are in talks with Scana Property AS about a possible acquisition of Scana Property's properties in Strand. This includes an industrial area of approximately 77 acres and an undeveloped area of approximately 70 acres in Jørpeland ("Stålverksområdet") and various outlying areas in Strand municipality.

Scana Property is a subsidiary of the listed industrial investment company INCUS Investor ASA ("INCUS" - former Scana Industrier ASA). Scana Property whose main purpose is to own and manage properties used by sister companies in Norway and Sweden. The industrial area was formerly leased to Scana Offshore Technology AS and Scana Steel Stavanger. Scana Offshore Technology was taken over by Aquamarine in 2014, while Scana Steel Stavanger went bankrupt in March 2015 and the bankruptcy estate to steelmaking operations were taken over by Norwegian Material Center of Expertise AS ( "Nomac"). Both Nomac and Aquamarine are currently tenants.

Since INCUS no longer has operations at Jørpeland the company considers a sale of the properties in Strand as a possibility to strengthening the Group's financial position.

The undeveloped area around the industrial site has recently been zoned for industrial purposes, and represents an attractive area beside the sea for real estate development in the future. In particular, it is expected that the opening of Ryfast (underwater tunnel) in 2019 will lead to migration and increased activity in Jørpeland when the travel time to Stavanger is shortened by more than 30 minutes.

"Stålverksområdet" has a central location between Jørpeland center and the sea, and will be an important area in the further development of Jørpeland. An owner of the properties with a strategic perspective will be able to plan and implement a good and comprehensive development of the area as an integral part of Jørpeland center. Moreover, a long-term owner could experience an increase in value after the opening of Ryfast in 2019. Based on this Scana Property means that Strand municipality could be a natural and proper owner of the sites the company owns in the municipality. It has therefore initiated a dialogue with the municipality to discuss this. The talks are still at an early stage, and it is currently unclear whether Strand municipality concludes that the properties are of interest, and whether a definitive agreement will be entered into and the conditions. The case raises among others questions about the role the municipality should play in facilitating spaces for industrial and urban development and the economic priorities. The case is being processed in the Presidency meeting on 8 June.

For further information please contact:
Mr. Kjetil Flesjå, CFO Incus Investor ASA, Mobile: [phone]

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

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Source: Incus Investor ASA via Globenewswire

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