Danish consortium buys Carlsberg site in EUR 335m deal

A Danish consortium has acquired the former Carlsberg brewery site in central Copenhagen in a record DKK2.5 bn (EUR 335 mln) deal.

The consortium plans to develop a 567,000 m² mixed-use scheme on the site. 'This concludes the largest Danish development transaction in history and promises to be one of Europe’s most significant development projects,' brewer Carlsberg said in a statement.

The transaction includes a site area of 250,000 m2, situated on the border of the Copenhagen city centre. 'The site's history, location and size presents an attractive opportunity to create a new city district, 'Carlsberg City' (in Danish: Carlsberg Byen), where Danish industrial history meets the modern life of the big city,' Carlsberg added.

Carlsberg has a 25% stake in the consortium. The other members are property development foundation Realdania (25% stake); pension funds PFA Pension (20%), PenSam (15%) and Topdanmark (15%).

The deal is even larger than the acquisition in December 2011 of the 45,000 m² United Nations headquarters in Copenhagen for EUR 282 mln. The buyers of UN City were Copenhagen City & Port Development and pension funds ATP and PensionDanmark.

The total development will cover 567,000 m² of floor area, comprising a mix of commercial, residential and cultural areas. Carlsberg said that a number of buildings will be refurbished, ensuring 'the preservation of the old brewery's unique 160-year heritage'.

More than 500,000 m² of buildings will be erected, including nine slim high-rise towers of up to 120 metres which will offer views of Greater Copenhagen and Southern Sweden.

The consortium said that ‘Carlsberg City’ is already experiencing strong interest from the investor and occupier markets, with several projects already pre-sold and construction of other significant developments expected to be initiated shortly.

The development is based on a master-plan by Danish architectural firm, Entasis, which won first prize in the world's largest architectural competition, the World Architecture Festival.