Luxury project sinks developer

Rising build costs and interest rates prove fatal for LB Prosjekt despite completing luxury Molde apartments.

Rising construction costs and interest rate hikes eroded profits, but all buyers received their units.

The 20 apartments overlooking Moldefjorden sold quickly when sales launched in 2021, but escalating costs destroyed the financials.

Unfortunate timing

Property broker Anders Sæternes tells E24 that while the location was attractive, the timing proved unfortunate. A significant portion had been sold at fixed prices before construction began, meaning rising costs hit hard.

Owners Rune Aksdal and Lasse Aarønes Moen have lost their equity of NOK 5.2 million plus shareholder loans of undisclosed value. According to bankruptcy trustee Niels R. Kiær, all apartments have been delivered and all suppliers paid.

We recently reported that real estate bankruptcies increased by 32 percent – and in September alone surged by 158 percent, according to Dun & Bradstreet figures.