Sjælsø Gruppen has signed a contract with Ørestadsselskabet for the rights to construct 129,200 m² commercial property in Ørestad Syd.
The intention is to utilize the site, which is located adjacent to the motorway and the Metro, and facing Fields and Ferring, for the construction of the World Trade Center Copenhagen. WTC Copenhagen will provide office accommodation of various dimensions, hotel and conference facilities and an international knowledge and commercial center.
In order to adhere to its financial targets, Sjælsø Gruppen has chosen to acquire the site through a joint venture between Sjælsø Gruppen and SG Nord Holding A/S, the latter comprising the Icelandic Samson/Straumur and Brdr. Rønje Holding A/S. The new joint venture will operate on the basis of a risk and earnings allocation favouring Sjælsø Gruppen and be structured in accordance with the principles governing previous joint ventures between Sjælsø Gruppen and Danish and foreign partners.
The price of the land totals DKK 426 million (€57 mln), with the overall value of the WTC Copenhagen project amounting to approximately DKK 3.5 billion (€0.47 bln).
Following completion of the land purchase, the marketing phase for WTC Copenhagen will commence in earnest. The construction will proceed in stages with the first stage beginning when rental contracts for a minimum of 10,000 m² have been signed. Sjælsø Gruppen maintains its previously announced expectations for annual pre-tax profits of DKK 700-900 million (€93.8-120.6 mln) for 2006 and 2007.