The Property Division is engaged in the development of dwellings for Veidekke’s own account, as well as non-residential buildings for private and public customers. The operations are concentrated around the largest towns in Norway and Sweden, while in Denmark, activities are limited.

In the fourth quarter, property operations in Scandinavia had a turnover of MNOK 227 (MNOK 220). Earnings before tax were MNOK -26.0, as against MNOK 17.0 in the same quarter of 2008. The result reflects the weak housing market and low production level, along with write-downs and sales gains with a net effect of MNOK 32.

Following a period of extremely low sales and few initiated projects, the housing market has shown a gradual improvement over the last three quarters. The market for used dwellings has been good in the Oslo and Stockholm areas, and advance sales have been satisfactory in the new projects we have placed on the market. This gives cause for optimism, although the market for large blocks of flats is still hesitant in many areas. Several projects will be started up both in Norway and Sweden during the first quarter of 2010.

A total of 182 housing units were sold during the fourth quarter, as against 130 in all of 2008.

Because of the low start-up rate in recent years, property operations only had 311 dwellings under construction at the end of the quarter. In comparison, 638 dwellings were under construction at the same time last year. At the end of the fourth quarter, the Group had a site portfolio corresponding to 7,800 housing units.