Veidekke Company to Create Exciting New City Area in Copenhagen
A consortium consisting of Hoffmann Ejendomme A/S and The Carlyle Group, a global private equity firm, is purchasing the vegetable market in Valby in Copenhagen with a view to developing a completely new city area on the approximately 40-acre area. The property is centrally situated in a very attractive area near the Carlsberg brewery in Vesterbro.
The agreement to take over the vegetable market that has been reached between the consortium and the Copenhagen Wholesale Market (Grønttorvet København s.m.b.a.) will make it possible to develop and build a completely new area in the centre of Copenhagen. The take-over of the approximately 40-acre site will take place around New Year 2011, when the vegetable market plans to move to a large, new food and flower market in the Høje Taastrup Transport Centre. The sales contract is subject to the approval of the Copenhagen Wholesale Market's extraordinary general meeting at the end of June.
The Copenhagen Wholesale Market's board decided in the spring of 2006 to sell the old market in Valby because of the extremely cost-intensive investments that would be necessary in the future and the risk that the introduction of low emission zones in Copenhagen would bar heavy traffic from the area. Negotiations commenced at the beginning of the year and the parties have now agreed that the purchasers will take over the site and buildings in Valby two years after finalisation of the local development plan for the area by the City of Copenhagen.
Close cooperation with the local inhabitants
Hoffmann Ejendomme and Carlyle have formed a joint development company, CVM Development, which will draw up a proposal for a completely new city area in collaboration with the inhabitants of Valby, Danish and international architects and urban planners, and the City of Copenhagen authorities. On the basis of this proposal, the City of Copenhagen will finalise a local development plan for the area. The plan is expected to be available at the end of 2008. The purchasing consortium anticipates that the first residential units in the new area will be ready in 2012 and that total investment in the project will be DKK 6-8 billion.
"This is one of the most exciting development areas in Copenhagen, because the site is close to the city centre and because this is a chance to create an entirely new, coherent area. It is crucial for us that the development takes place in close dialogue with the local inhabitants, future-oriented experts and the City of Copenhagen," says Mr. Gert Olsen, Managing Director of Hoffmann Ejendomme A/S and spokesman for the consortium.
"We regard Copenhagen and the entire Øresund region as one of the most important growth areas in Northern Europe. This is an opportunity to build a whole new city district in a very attractive location and as such the project fits very well into our investment strategy," says Director Thomas Lindström of the Carlyle Group.
For more information, please contact:
Managing Director Gert Olsen, Hoffmann Ejendomme,
tel. +45 4329 9310, mobile +45 6012 9310
Managing Director Thomas Lindström, The Carlyle Group,
tel. +46 8510 69600, mobile +46 7089 25130
VEIDEKKE ASA
Veidekke ASA is a leading Scandinavian building contractor and property developer with 6,350 employees and an annual turnover of NOK 16.4 billion (2006). Veidekke is listed on the Oslo Stock Exchange. It has a wide group of shareholders and 14% of the shares are held by the company's employees. The company's activities cover a large range of building and construction contracts, development of housing and commercial projects for private and public customers, asphalt operations and road maintenance, and collection and recycling of waste.