Sjælsø Gruppen has concluded agreement with TDC about construction of new headquarters on Teglholmsgade in Copenhagen, Denmark. In connection with expiry of TDC's lease in Nørregade, Copenhagen, TDC has concluded a lease agreement with KTAS' Pensionskasse (pension fund) about combining the activities and moving the headquarters to Teglholmsgade.
The new headquarters, drawn by Design Group Architects, are to be constructed in turnkey contract on a site adjacent to the realted buildings on Teglholmsgade. The property, which is owned by a wholly-owned property company of the pension fund, will comprise approx. 11,000 m2 incl. basement, and is expected to be ready for use by the summer of 2009. The project value represents a little more than DKK 200 million exclusive of land.
The commercial market still develops positively with great demand from tenants and users. The vacancy on the market is still very low, and accordingly, there is increasing need for new constructions 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.
In addition, Sjælsø Gruppen notes that there is continuing demand from both Danish and international investors for new office projects offering satisfactory returns.
The agreement substantiates Sjælsø Gruppen's formerly announced expectations of profit. Accordingly, profit before tax of DKK 800 to 900 million is still expected for 2007 as well as a high level of activities for 2008.