Agat Ejendomme

M&A Activity • Feb 25, 2014

Company announcement no. 2/2014

Aalborg, Denmark, 2014-02-25 09:53 CET (GLOBE NEWSWIRE) --

Summary:

-- TK Development has conditionally sold a 6,000 m2 office project in Aalborg,
Denmark.
-- The project has been developed and let under a long-term lease to the
international Alfa Laval Group.
-- The project has been sold to PensionDanmark for a total price of DKK 126.1
million.
-- Construction is expected to start in March 2014, and hand-over to the
investor is scheduled for June 2015.

The “Alfa Laval” office project in Aalborg, Denmark, has been conditionally sold

TK Development has conditionally sold a planned striking office project in
Aalborg, Denmark. The project is to be built in an interesting development area
at the eastern waterfront of Aalborg where the Group has previously developed
and sold corporate headquarters to KMD, among other projects. Following project
execution, the remaining development potential will exceed 60,000 m2.

The new project is a 6,000 m² office building with parking facilities, and the
property has been let under a long-term lease to the international Alfa Laval
Group. The location of the headquarters building has been a vital element of
Alfa Laval’s decision to strengthen its position in the North Jutland area, and
the new facilities will accommodate about 300 employees.

The project has been sold to PensionDanmark for a total price of DKK 126.1
million. PensionDanmark’s investment is part of its focus on stable
alternatives - including 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.

The project has been designed by PLH Arkitekter A/S and consists of a
future-proof, four-storey atrium building in maritime style to reflect the
surroundings. The property will be constructed as a low-energy building with
solar heating and solar screening to reduce energy consumption, and
environmental certification will be applied for with the aim of being awarded
the DGNB Silver label.

The project will be built and sold in a joint venture with the Danish shipping
and industrial group, Lauritzen Gruppen, with TK Development’s profit share
amounting to 70 %. Actual project construction will start in March 2014, and
hand-over to the investor is scheduled for June 2015.

The project sale contributes to the Group’s generation of results for the
2015/16 financial year. TK Development maintains its profit forecast for the
2013/14 financial year.

Contact information:

TK Development A/S, Frede Clausen, President and CEO, tel. +45 8896 1010