Sjælsø sells new rental property project with 63 apartments to PKA for DKK 137m (DK)
Wednesday 19 November 2008
Sjælsø has signed an agreement with PKA for the sale and construction of a rental property in Valby Have at Gammel Køge Landevej in Valby. Designed by Arkitema, this new rental project has been developed in close co-operation with PKA.
The project, which comprises 63 apartments with parking facilities, has a total project value of DKK 137 million (approx. €17 mln.). The apartments are expected to be ready for occupation in the spring of 2010.
The project is Sjælsø’s final residential project in Valby Have. The remaining approx. 6,000 m² commercial project at the same location is expected to be let and started in the near future.
When fully developed Valby Have will comprise approx. 500 residential apartments and approx. 6,000 m² commercial buildings. More than 1,200 residents will live in the small urban development which combines apartments and terraced houses.
Good market for rentals
Sjælsø continues to note a positive rental market with strong demand from both tenants and investors.
“Following the sale of all our residential units under construction in our 100% owned projects in Greater Copenhagen to Essex in August, we have noted a rising interest in rental property from a broad range of investors,” Flemming Joseph Jensen, CEO of Sjælsø, says.
“The development in demand and rental levels for apartments for renting together with falling production prices enables us to develop and sell residential projects with a good return for investors,” explains Flemming Joseph Jensen. “We, therefore, expect to sell more residential projects over the coming months”, Flemming Joseph Jensen says.
Expectations for 2008
The sale to PKA will contribute positively to earnings in 2008, 2009 and 2010 and supports Sjælsø’s previously announced profit forecast for 2008.
Consequently, expectations are for a profit before tax of DKK 250-350 million before any value adjustments.
Denmark