FDBusiness.com

Carlsberg Group has sold its former brewery site in central Copenhagen for about DKr2.5 billion (Eur335 million) to a consortium of Danish investors. The proceeds will be used to reduce the Danish brewer’s debt.

The deal includes a site area of 250,000 sq m, attractively situated on the border of Copenhagen city centre. The site’s history, location and size presents an attractive opportunity to create a new citydistrict – ‘Carlsberg City’. The aim is to develop Carlsberg City into one of the most attractive parts of Copenhagen.

The total development site will be 567,000 sq m, offering a mix of commercial, residential and cultural areas. A number of buildings worthy of preservation will be refurbished, thereby ensuring the preservation of the old brewery’s unique 160 year heritage. In addition, more than 500,000 sq m of buildings will be erected, including 9 slim high rise towers of up to 120 metres which will stand as markers for Carlsberg Cityand offer excellent views of Greater Copenhagen and Southern Sweden.

Carlsberg will retain a 25% stake in the site and will book a pre-tax capital gain of approximately DKr1.7 billion as special item in the second quarter of 2012. The post-tax capital gain will be approximately DKr1.4 billion, free cashflow will be positively impacted by approximately DKK 1.9 billion, and net interest bearing debt will be reduced by a similar amount.