With effect from 28 February 2005, TKD Nordeuropa has signed an agreement with Miller Developments on the construction of a 12,000 m2 factory outlet center in Ringsted, Denmark. The project, which is the first major factory outlet center in Denmark, is expected to be completed in the autumn of 2006.
The project comprises a 12,000 m2 factory outlet with restaurant facilities and about 1,000 parking spaces. As regards infrastructure, the factory outlet will be well located near motorway entrance/exit Ringsted.
This is the first major factory outlet center project in Denmark. Based on preliminary discussions with potential tenants of strong retail brands, the future prospects for the project are good.
The TK Development Group expects that the construction work will start at the end of 2005, and that the factory outlet center will open for trading in the autumn of 2006. The final timing of the sale of the project, which is expected to take place in 2007, will depend on the actual letting.
The project will be carried out as a new 50/50 joint venture with Miller Developments, which is a subsidiary of the Miller Group, the largest, privately-owned property development, house-building and construction services company in the United Kingdom.
The TK Development Group still expects to record a profit of DKK 0 after tax for the 2004/05 financial year and a profit of DKK 20 million for the TKD Nordeuropa Group. Furthermore Management maintains its expectations for the 2005/06 financial year of a profit after tax of DKK 50 million for the TK Development Group and DKK 70 million for the TKD Nordeuropa Group.
Source: TK Development