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| Country | Denmark |
|---|---|
| List | First North Denmark |
| Sector | Real estate |
| Industry | Management |
Company Announcement no. 29 - 2023
14 August 2023 20.30 (CET)
This Company Announcement contains inside information
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Today, Movinn A/S (as operator and tenant) and AG Gruppen A/S (as developer and owner) have signed a long term master lease agreement on a 94 unit (approx. 4,700 sqm) commercial development project in Copenhagen. The property is conceptually planned to have hotel / serviced apartments, a wellness area and shared workspace. The development is located in Amager, with walking distance to the beach and short commute to the city center and the airport alike.
The property will consist of a mix of studio, 1-bed and 2-bed apartments - each fully fitted with kitchen space, bathrooms and decorated with a customized FF&E (furniture, fixtures & equipment) concept to offer high quality and a timeless feel with clear references to the Danish design tradition. In the basement, the development will have a full wellness area complete with sauna, cold showers, soaking tubs, gym and treatment room. In the ground floor there will be apartments with private gardens, a foyer, a shared workspace and meeting rooms for residents and guests to use on request. The general philosophy behind the general layout and concept is to create a holistic experience where guests and residents can combine health / wellness, living and working under one roof.
Movinn and AG Gruppen share a clear vision for sustainable property development and sustainable property operations, meaning the property will be constructed to obtain a certification under the DGBN rating system. Different sustainable features will be prioritized in the project; large solar panel systems on the roof being one tangible example.
The property lease and operations will be placed in a separate subsidiary fully owned by Movinn A/S and the commercial launch date is expected to be in late 2025 / early 2026. The master lease agreement is conditional on AG Gruppen divesting the project.
This master lease agreement will not have any financial impact for Movinn in 2023 and 2024. A more precise timeline and launch date of the property will be communicated when the project is further into its construction phase. Measured in 2023-prices, the project is projected to generate annual revenues in the range of 20,0 - 22,0 mDKK and realize an EBITDA in the range of 3,0 - 5,0 mDKK.
Movinn CEO, Patrick Blok states:
“Completing a deal of this caliber ticks a lot of strategic boxes for us, so I am happy with the outcome. We are adding nearly a hundred new units in a key, established market. We expect to leverage existing operating synergies, tap into new client segments, enhance efficiency and introduce a high quality product and concept. I would like to thank the team at AG Gruppen and the advisors at Nordanö, Accura and Horten for orchestrating a high-quality, professional process. We eagerly anticipate our role in the continued development and operations of this great projekt in the times ahead".
Summary:
- Movinn signs a long term master lease on a 94 unit commerical project in Copenhagen (DK).
- Approx. 4,700 sqm including spa / gym area in basememt.
- Developer: AG Gruppen.
- Advisor teams: Nordanö, Accura and Horten.
- The units are scheduled to be handed over in late 2025 / early 2026.
- The full year revenue effect of the development is expected to be between 20,0 - 22,0 mDKK. (2023-prices)
- The full year EBITDA effect of the development is expected to be between 3,0-5,0 mDKK. (2023-prices)