April 16, 2018 / 4:12 PM / in 3 months

Billionaires Roekke and Fredriksen join forces in property deal

OSLO, April 16 (Reuters) - Shipping tycoon John Fredriksen and Norwegian billionaire Kjell Inge Roekke are setting up a property company together, their second joint venture in as many years.

Aker, Roekke’s investment company, said on Monday that it had signed a deal with Geveran Trading, one of Fredriksen’s investment vehicles, and Norwegian real estate firm Joh Johannson Eiendom to create FP Bolig Holding.

“We are strengthening our real estate initiatives by entering into joint ownership with two prominent investment companies,” Aker CEO Oeyvind Eriksen said in a statement.

Aker and Joh Johannson Eiendom will each own 37.55 percent of the new company, while Geveran will own the remaining 24.9 percent, Aker said.

FP Bolig will acquire from Aker three real estate sites in the Oslo suburb of Fornebu, Aker said, in an agreement that values Aker’s property assets at 828 million crowns ($106 million) on a debt and cash-free basis.

“Over a ten-year period it is expected that FP Bolig will develop approximately 80,000 square metres of residential properties, corresponding to about 1,000 apartments,” Aker said.

The FP Bolig deal is expected to release 360 million crowns in cash for Aker, with an accounting gain of 190 million crowns to be booked in the second quarter, Aker said.

In 2017 Roekke and Fredriksen created an offshore oil industry supply vessels giant, Solstad Farstad, when they merged their respective fleets with that of Farstad Shipping.

It was the first collaboration for the duo, who said at the time that they would seek more joint investments.

Aker controls oil sector suppliers such as Aker Solutions , Kvaerner and Akastor.

Geveran Trading has stakes in Marine Harvest, the world’s largest fish farmer, and real estate firms Norwegian Property and Entra.

Pareto Securities acted as financial adviser to FP Bolig, Aker said. ($1 = 7.7863 Norwegian crowns) (Reporting by Gwladys Fouche Editing by David Goodman)

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