Store Norske is buying Hurtigruten’s buildings on Svalbard for 690 million kroner

Hurtigruten Grop is selling its buildings on Svalbard to Store Norske for NOK 690 million. 

At the same time, the two companies are entering into a 30-year cooperation agreement on the development of tourism on Svalbard, Hurtigruten stated in a press release.

Store Norske Spitsbergen Kulkompani (SNSK) is wholly owned by the Ministry of Trade and Fisheries.

Money from the Ministry

The Ministry will contribute money to the purchase, the government announced.

“Store Norske is a key player in Svalbard. The company is already active in property management locally and has commercial real estate as one of several focus areas. The purchase of these buildings fits in well with Store Norske’s strategy and will strengthen the company,” Minister of Trade and Industry Iselin Nybø (V) said.

The Ministry will present the case for consideration in connection with the revised national budget.

Hurtigruten manager Daniel Skjeldam states that there has been great interest in the properties on Svalbard from several serious players over time.

“Svalbard is a key destination for us… It has been important for us to find a perfect partner who can contribute to the long-term development of tourism and the Svalbard community. We found that with Store Norske,” Skjeldam said.

“Focus area”

“Commercial real estate is a focus area for us, and we have long wanted to buy Hurtigruten Group’s building portfolio on Svalbard,” Jan Morten Ertsaas, CEO of Store Norske, noted.

The building portfolio for sale is around 40,000 square meters and includes three hotels with 290 rooms, office space, 40 apartments, and two large retail premises, Hurtigruten stated.

The value of the deal is approximately NOK 690 million.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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