A consortium led by ATP and PensionDanmark is boosting resources for its Copenhagen office development project in a bid to kick-start pre-letting.
The investors, together with third partner CBH City & Port, have put more money into the ongoing, 60,000 sq m project, which began in 2011. ATP and PensionDanmark each hold 45.75% stakes in the Harbour consortium, which also owns the now-completed 45,000 sq m UN City development in Copenhagen. CPH City & Port has the remaining 8.5%.
The consortium has hired Mogens Bendixen as project director – a newly-created role for the development. Bendixen, previously at NCC Property Development, where he had various roles including project director and head of department, will be based at ATP Real Estate’s headquarters in Copenhagen.
Michael Nielsen, chairman of Harbour, and director ATP Real Estate, told IP Real Estate: “We need to be more active in the lettings market, and we have simply allocated more resources to drive it forward.”
Nielsen said the partners had always wanted to have a certain amount of space let before beginning construction.
“When – and if – we have the first leading contracts in place, we will take the decision whether to start construction,” he said.
No completion date has yet been set, said Nielsen, but added that construction will take between two and three years. Land and building rights were bought by the consortium in late 2011 to build two prominent office towers at the entrance to Copenhagen harbour. One of the two planned buildings will be built at the end of Marmormolen quay, with another at the end of harbour wall Langelinie. The towers will be joined by a high-level bridge structure over the water.
Nielsen said the financial crisis had slowed office letting activity for large schemes in the last five to six years with very little activity.
“We see a few more positive signs in the market, and this is one of the reasons we think the time is getting better and we could see enough tenants,” he added.