AF Gruppen

Earnings Release • Mar 8, 2017

AF Gruppen has received an order for the first construction stage in Bispevika

AF Gruppen has received an order for the first construction stage in Bispevika

Reference is made to the notice to the stock exchange dated

12 December 2016 concerning exclusive negotiations between

AF Gruppen (AFG) and Oslo S Utvikling (OSU) on the

development of Bispevika.

Today AF Gruppen received an order for the first

construction stage that comprises Dronninglunden in area B2.

Dronninglunden comprises 140 apartments that now have been

released for sale.

Work starts in July 2017 and is scheduled for completion in

the summer of 2019. The contract value is estimated at NOK

370 million, excluding VAT. The construction of the

apartments is subject to adequate advanced sales.

AF Gruppen and Oslo S Utvikling are negotiating a

partnership agreement for the development of Bispevika - an

area comprising approx. 1,300 homes with retail premises on

all ground floors. A final partnership agreement is expected

to be announced in March.

"We are pleased to receive the first order from OSU for the

development of homes in Bispevika. This project is expected

to be the first of several construction stages in Bispevika.

The contract includes ambitions for cost-effective and

innovative development, and we are looking forward to

cooperating with OSU on realizing these ambitions," says CEO

of AF Gruppen, Morten Grongstad.

For further information:

CEO: Morten Grongstad, tel. +47 991 53 905

EVP Building: Henning Olsen, tel. +47 917 41 592