Bloomberg News

Carlsberg Will Build College as First Development at Valby Site

November 04, 2012

A consortium led by Carlsberg A/S (CARLA) has agreed to build a campus for a local college as the first property development at the Valby site in Copenhagen where the Danish brewer started production more than 150 years ago.

An investor group, in which Carlsberg holds a 25 percent stake, plans to build the facilities for University College Capital, an independent self-governing community college, the brewer said in an e-mail. The college will lease the buildings for an undisclosed amount for 30 years and then buy them for 1.5 billion kroner ($260 million), Carlsberg said.

Four years ago, Carlsberg moved all of its production to Fredericia in western Denmark from Valby, where the company was founded in 1847. The brewer kept its corporate headquarters, a museum and its specialty brewery in Valby and announced plans to sell the rest of the 567,000 square-meter (6.1 million square- foot) site, which is located in the south western part of the Danish capital.

In April this year, Carlsberg sold a 75 percent stake in the group developing the site to investors including PFA Pension A/S, Pensam Forsikring A/S, Topdanmark A/S (TOP) and the Realdania Fund, which owns a 10 percent stake in Danske Bank A/S. (DANSKE) The brewer in August booked a 1.7 billion-krone pretax gain from the sale of the 75 percent stake.

The group plans to develop the site, dubbed “Carlsberg City,” into a mixed housing and commercial neighborhood. The college, which still needs the parliament's approval, will be the first major development at the site.

“The government needs to approve the University College’s agreement to go ahead with its campus plans on the Valby site,” Ben Morton, a Carlsberg spokesman, said in an e-mail. “It has been discussed for the past two to three years and we hope it will be accepted.”

According to parliament records, the assembly’s Finance Committee is set to discuss the contracts for the planned 55,000 square-meter facility before the end of the year. Denmark’s parliament is required to approve public works exceeding a value of 100 million kroner.

To contact the reporter on this story: Peter Levring in Copenhagen at plevring1@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net


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