TK Development has signed a preliminary agreement to sell an office project in Aalborg to Danish pension fund PensionDanmark for DKK 126.1 mln (€17 mln).
TK Development has signed a preliminary agreement to sell an office project in Aalborg to Danish pension fund PensionDanmark for DKK 126.1 mln (€17 mln).
TK Development, which owns the project through a 70-30 joint venture with Danish shipping and industrial group Lauritzen Gruppen, will construct and hand over the site to the investor in June 2015.
The 6,000 m2 office is to be built on the eastern waterfront of the northern Danish city of Aalborg on a site with a development potential of over 66,000 m2.
Designed by architects PLH, the scheme is pre-let under a long-term lease to the Alfa Laval Group which will relocate over 300 employees to the site. Construction is expected to start in March 2014.
PensionDanmark said the investment is in line with its focus on stable alternatives. 'This includes high-quality properties let to robust tenants on long-term leases that can offer stable earnings which are fairly insensitive to economic fluctuations and generate an expected return comfortably above bond yields.'