MT Højgaard Holding’s business unit, MT Højgaard Projektudvikling, has entered into an agreement for the development, construction and sale of a project to Niam for DKK 577 million. Niam is one of the largest private property owners in the Nordics.
The project comprises 27,578 square meters of new construction divided between 9 apartment buildings with a total of 301 apartments on Dalum Paper factory’s former area in Odense. Construction work is expected to commence in September 2021 with planned completion of the last phase of the project in Q1 2024. The construction work will be performed by MT Højgaard Danmark and Raunstrup, which is part of Enemærke & Petersen.
Following the agreement with Niam, planning is now in place for all 45,000 residential, corporate and commercial square meters being developed by MT Højgaard Projektudvikling as a mix of new construction and renovation of parts of the former factory buildings worthy of preservation and located on the brink of the stream in Odense. MT Højgaard Projektudvikling has entered into agreements for the sale or conditional sale of projects comprising a total of 36,500 square meters, and the company will erect 62 terraced houses and an apartment building with 19 owner-occupied flats on the remaining part of the area with a view to sell these units to end-users.
Dalum Paper factory is MT Højgaard Projektudvikling’s largest single project. The agreement with Niam Danmark is therefore an important step in the efforts to reduce capital tied up in the MT Højgaard Holding Group’s total property portfolio, which had a value of DKK 511 million at the end of Q1 2021.
”We are looking forward to cooperate with Niam with a view to create an attractive new residential area with varied housing forms and respect for the unique history and soul in the area of Denmark’s oldest paper factory. It is an exciting project that lets us draw on competencies across the MT Højgaard Holding Group to transform a former industrial area into a new, diverse residential quarter,” says Finn Mortensen, Project Development Director at MT Højgaard Projektudvikling.
The agreement does not change MT Højgaard Holding’s previously announced outlook for 2021 where the Group expects revenue of around DKK 6.8 billion and operating profit of DKK 160 before special items and special amortisation.
CEO of MT Højgaard Holding, Morten Hansen, or Project Development Director at MT Højgaard Projektudvikling, Finn Mortensen, can be contacted on telephone +45 22 70 93 65.