TKD Nordeuropa reaches agreement to sell and develop 42,000 m² centre in Valby, Copenhagen (DK)

TKD Nordeuropa, a wholly-owned subsidiary group of TK Development, has entered into an agreement to sell and develop the shopping and metropolitan centre, Valby Torvene, in Valby, Copenhagen.

The buyer of the centre is Dades, a Danish property investment company. The parties have agreed on a sales price of DKK 662 million. Dades is one of Denmark’s largest property investment companies, with a portfolio of commercial properties and shopping centres covering almost 700,000 m².

For several years, TKD Nordeuropa has planned the new shopping and metropolitan
centre, which is to be built on the former cotton mill site in Valby. The metropolitan centre will consist of about 18,000 m² of shops and restaurants, 5,000 m² of offices, 7,000 m² of leisure facilities and 12,000 m² of parking facilities. Modelled on an international design, the shopping centre buildings will be linked by a glass roof at fourth-storey level and a traditional centrally located mall walkway.

The project comprises the conversion of the existing cotton mill and the construction
of five new independent buildings to create a new metropolitan area with its own streets. The ground floor will be used for retail sales and the other floors for accommodation and offices, thus ensuring the centre a natural level of activity at
all times.

The project has been under development for several years and is the result of
highly satisfactory cooperation with the City of Copenhagen, central government
authorities and Valby Metropolitan Council, among others.

About 60 % of the premises have already been let to such tenants as Kvickly,
Fakta, Hennes & Mauritz and Jysk.

Moreover, the centre will include 12,500 m² of housing, of which 2,500 m² has
been sold to the housing association DVB. The remaining units are expected to
be sold shortly.

Construction work will start in the very near future, and the centre is expected to
open in the autumn of 2006.

After the closing of the accounts for the 2004/05 financial year on 31 January
2005, the following profit estimates have been made for the 2004/05 and 2005/06
financial years:

  • The subordinated debenture loan of nom. DKK 220 million in TKD Nordeuropa
    was not floated until July 2004, which was later than originally planned. Accordingly,
    the implementation of some projects has been postponed relative to the
    initial schedule, resulting in lower earnings for the 2004/05 financial year. However,
    total estimated earnings on the project portfolio remain unchanged. Against
    this background, the estimated profit of TKD Nordeuropa for the 2004/05 financial
    year has been changed from DKK 40 million after tax to DKK 20 million after tax. For the 2005/06 financial year, TKD Nordeuropa is expected to record a profit of about DKK 70 million after tax.
  • TK Development is still expected to record a total consolidated result of DKK 0
    after tax for the 2004/05 financial year.
  • Both the Central European and the Northern European markets are anticipated to
    undergo positive development in the 2005/06 financial year. Thus, Management
    forecasts a total consolidated profit of about DKK 50 million after tax for TK Development for the 2005/06 financial year.

Source: TK Development

Related News