Through its Norwegian subsidiary, IBI Norge AS, Sjælsø Gruppen has signed an agreement to build an approximately 26,000 m² retail park in Kristiansand in Norway in cooperation with a local partner.
The retail park will be situated in a retail and commercial district 9 km east of Kristiansand, which already houses a variety of retail businesses. The project has been developed in close partnership with Kristiansand Municipality, which wants to extend the retail area at Sørlandsparken.
The project, which is scheduled for construction start at the summer of 2007 and completion in the autum of 2008, has been let in advance to well-known retail chains such as XXL (sports equipment), Living (furniture), Lefdal (electronics), Jula (mail order warehouse) and Optimera Montér (construction products). Only 10% of the available space is currently unlet.
The project whose value totals approximately DKK 350 million has been sold to an investor.
Profit increased by 25% at IBI Group
The IBI Group has just published its accounts for 2005/06, i.e. for the period up to Sjælsø Gruppen's acquisition of IBI on July 1, 2006.
The 2005/06 accounts show an impressive increase in both turnover and profit with pre-tax profits rising by 25% to DKK 82 million based on a turnover of DKK 1,076 million.
The growth in profit confirms Sjælsø Gruppen's expectations in connection with the acquisition of the IBI Group, including the forecast for substantial growth in both turnover and profit.
The growth is expected to continue and to accelerate further as synergies between the IBI Group and Sjælsø Gruppen materialise.
Sustained, strong activity in the retail market
Sjælsø Gruppen is noting sustained, strong activity within the retail market in all Nordic countries. This includes substantial demand for new projects from commercial tenants as well as investors.
Consequently, Sjælsø Gruppen expects to sign contracts for further retail projects in the months to come.
The project in Kristiansand supports Sjælsø Gruppen's previously announced forecasts. Pre-tax profits for 2006 are expected to be in the region of DKK 700-800 million while pre-tax profits for 2007 are expected to be DKK 800-1,000 million.