Sjælsø Gruppen sells office project of approx. DKK 350 million to PFA (DK)

Sjælsø Gruppen has concluded agreement with PFA Pension about the sale of an office project with a project value of approx. DKK 350 million (approx. € 34 million). The construction will be initiated now with expected handing over in December 2008.

The project is located at Kalkbrænderihavnen (a Copenhagen port area) on the corner of Kalkbrænderihavnsgade and Sundkrogsgade, and comprises Sjælsø Gruppen's remaining construction opportunity in the area. The property will be of approx. 10,000 m², plus basement parking, etc., and will be constructed in an architecture matching the remaining properties in the area. The project has been drawn by Dissing & Weitling.

As a part of the agreement, Sjælsø Gruppen will issue a rental guarantee on more closely agreed terms. The property is expected to have three to five tenants. Already at this point, rental agreement has been concluded with Devoteam Consulting A/S of approx. 20% of the area of the property, and negotiations are in progress with several potential tenants for the remaining part of the property.

Devoteam Consulting A/S renders advisory services to public and private customers in the cross field between management and technology, including about lean and risk management. For several years, Devoteam Consulting A/S has seen steep progress and expects further growth in the future, which is the reason for the company's establishment of new headquarters at Kalkbrænderihavnen.

"The property will be quality construction with good location by the port. It is in line with our strategy to invest in large quality properties, and typically headquarter properties with good locations," says Director Michael Willumsen, PFA Ejendomme. PFA already
owns a number of notable headquarter properties in Denmark.

Positive expectations for the commercial market
The commercial market still develops positively with increasing demand from tenants and users. The vacancy on the market is still very low, and accordingly, there is increasing need for new construction to meet this demand. As such, Sjælsø Gruppen still sees increase in the addition of new potential tenants, which supports the expectations of a positive development in the commercial market. Sjælsø Gruppen also states that there is still very strong demand from Danish as well as international investors, and still with very satisfactory return requirements.

Expectations of profit are maintained
The agreement with PFA substantiates Sjælsø Gruppen's formerly announced expectations of profit. Accordingly, profit before tax of DKK 800 to 1,000 million (approx. € 100 to 125 million) is still expected for 2007 as well as a continued high level of activities for 2008.

Source: Sjælsø Gruppen

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