The Carlyle Group Makes First Investment in Denmark: 400 Homes on the Copenhagen Waterfront

The Port of Copenhagen Ltd. has signed an agreement for a residential development project with the Danish property developer Nordkranen A/S and global private equity firm The Carlyle Group. The waterfront housing project is the first property investment The Carlyle Group has made in Denmark.

The Port of Copenhagen Ltd has agreed to sell approximately 40,000 m2 of land of along Islands Brygge South in Copenhagen to Nordkranen/The Carlyle Group, for the development of 400 apartments. The area is developing into one of Copenhagen’s most attractive waterfronts and is close to the city centre with good transport links of both bus and subway services.

The buyer and seller have also agreed to work together on a development plan for the whole area, which is currently home to a number of large dilapidated industrial units. NCC Property Development owns 33,000 m2 in the area and is also committed to working on the local development plan.

The project is in keeping with the local authority’s plans for the harbour area in Copenhagen, which involve a combination of homes and service industries. Construction work will commence once the City of Copenhagen has approved a local area development plan. The local authority is positive about building homes in the area and expects to approve a local area development plan in 2005, which would allow construction work to go ahead in early 2006.

Nordkranen and Carlyle expect to invest a total of DKK 1 billion/ €130 million to complete the full redevelopment of Islands Brygge South.

“We are delighted to be investing in Denmark. Copenhagen has a healthy economy, unemployment is low and there is high demand for homes. We believe this new residential development in the heart of urban Copenhagen will be an excellent first investment for us,” commented Dr. Wulf Meinel, managing director, The Carlyle Group.

“It was exciting when one of the biggest German investors, Deka Immobilien, chose the Port of Copenhagen for their first investment in Denmark. Similarly, it is a promising advance in a Danish context to see another major international investor in the harbour area. Major investors think in the long-term and are quality conscious,” said managing director Henning Hummelmose, Port of Copenhagen Ltd.

“We plan to build good quality flats for rent at the more affordable end of the price scale as well as luxury apartments. The location will be attractive, on the waterfront and only a short distance from the city centre as well as Ørestaden and Sydhavnen where many people work. We are pleased to be involved in this project alongside the Port of Copenhagen and Carlyle,” added Dan Petersen, managing director, Nordkranen. Nordkranen is based on Islands Brygge in Copenhagen.

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