A controversial property deal in Eastern Norway has taken another damaging turn. The owners of twelve plots of land face fresh losses after a company's collapse and a subsequent bankruptcy auction. This case exposes sharp practices in Norway's real estate sector and raises questions about investor protections.
Eplehagen Eiendom AS originally acquired the plots from landowners. The company promised high returns in exchange for taking over the properties at low cost. Many sellers instead suffered substantial financial losses. The broker involved lacked proper licensing, and the company's financial management faced heavy criticism.
Investor Frode Røste Solvang announced plans to rescue the company in October. He made bold promises about profitability for the land projects. Those promises did not prevent Eplehagen Eiendom from declaring bankruptcy three months later. Solvang then reappeared, stating he would purchase the same twelve properties from the bankruptcy estate at a low price.
That plan has now unraveled. The bankruptcy trustee, Johan Henrik Nossum, reports that Solvang's company, Cru Asset Management, failed to complete payments on six of the properties it agreed to buy. The trustee has canceled those agreements and resold one property to another buyer. Ten properties have been sold for a total of 66.7 million Norwegian kroner. Cru Asset Management purchased six for 44 million kroner but did not pay on time.
Solvang presented a different account to the press. He described the bidding strategy as purely business. "We had to bid on everything because it was more attractive for the trustee," Solvang said. "In our world, we always thought there were some properties we would not take over." When asked if this amounted to misleading the trustee, he called it a commercial strategy that created extra work for the estate but was worthwhile for his firm.
The trustee states the remaining five properties will be subject to resale in the coming period. This affair is part of a wider pattern for some sellers. One couple from Kongsberg sued their insurance company after the original deal collapsed. That case ended in a settlement.
This scandal highlights vulnerabilities in Norway's property transaction systems. While Norway has strong consumer protections generally, complex investment schemes can create pitfalls. The case involves specific locations in the Ăstlandet region, a major area for development pressure. It shows how aggressive investment tactics can impact ordinary Norwegians. The fallout may prompt closer scrutiny of real estate investment vehicles and bankruptcy auction processes. For international observers, it serves as a reminder that even in highly regulated markets like Norway, due diligence remains critical.