Sjælsø Gruppen A/S and London-based Benson Elliot Capital Management LLP today signed an agreement for a 50:50 partnership for the final development and sale of Sjælsø Gruppen's residential project at Havneholmen in Copenhagen.
Under the agreement, the P/S Havneholmen joint venture will, from today, acquire all unsold apartments in the project as these are completed over the next few years. The agreement covers a residential area of 18,000 sqm valued at approximately DKK 900 million.
As Sjælsø Gruppen has already sold a number of the apartments to other buyers, Havneholmen's total project value amounts to approximately DKK 1.1 billion. For Sjælsø Gruppen, the agreement with Benson Elliot means that more than 60% of the project has been sold to external parties, when Sjælsø Gruppen's continued involvement in P/S Havneholmen has been accounted for.
The new partnership enables Sjælsø Gruppen to initiate the project's construction phase with immediate effect. Sales of the apartments will proceed as planned, but will be further accelerated in the period immediately up to their completion. As a result, buyers will benefit from only a short delay between the signing of the purchase contract and taking possession of their new home.
"We're delighted that the partnership with Benson Elliot will allow us to complete the project faster than expected while, at the same time, offering potential buyers more attractive conditions," says Flemming Jensen, Director, Sjælsø Gruppen. "We feel that home buyers in central Copenhagen, in particular, want to move into their new homes as soon as possible after signing the purchase contract. The partnership with Benson Elliot means that we can better meet the demand for a faster transfer without compromising our financial targets."
"Sjælsø Gruppen works regularly with Danish and international partners developing property projects," Flemming Jensen said. "This enables us to optimise our skills and expertise and in our view, working together with professional investors and partners on major projects continues to offer considerable opportunities.
Benson Elliot's involvement reflects the company's desire to invest in the residential sector in Copenhagen, which is based on extensive analysis of the local property market. "The venture illustrates our continuing confidence in the Danish property market and in Sjælsø Gruppen," said Mr. Mogull. "The Danish market today is strong, and healthy economic factors underpin the outlook. High employment and low interest rates, combined with substantial buyer liquidity and a sound economy, provide a healthy basis for Copenhagen residential investment in the short term as well as further ahead."
"Having worked succesfully with Sjælsø Gruppen in the past, I am pleased to continue that relationship on a project as prestigious as Havneholmen. Much of Copenhagen's housing stock consists of older homes of outdated design and size homes that are often ill-suited for the needs of modern families. With an improving local economy, and Havneholmen's excellent harbour front location, we have high expectations for this partnership with Sjælsø Gruppen."
Source: Sjælsø Gruppen