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EntrĂŠ, multifunctional centre, MalmĂś, Sweden

TK Development A/S Stock exchange announcement no. 1/2008 CVR 24256782

Prague Outlet Center, Czech Republic

Shopping centre, Nowy Sacz, Poland

Ringsted factory outlet, Denmark

Residential Park, Bielany, Warsaw, Poland


Stock exchange announcement no. 1/2008

TK Development A/S

CVR 24256782 ISIN code 0010258995 Municipality of registered office: Aalborg www.tk-development.dk e-mail: tk@tk.dk Tel: (+45) 8896 1010 Executive board: Supervisory board: Frede Clausen Poul Lauritsen Robert Andersen Torsten Erik Rasmussen Per Søndergaard Pedersen Kurt Daell Jesper Jarlbæk Niels Roth 90 %

Euro Mall Holding A/S

TKD Nordeuropa A/S

CVR 20114800

CVR 26681006

Stockholm Gamla Brogatan 36-38 S-101 27 Stockholm Tel: (+46) 8 751 37 30

Aalborg Vestre Havnepromenade 7 DK-9000 Aalborg Tel: (+45) 8896 1010

Helsinki Korkeavuorenkatu 34 FIN-00 130 Helsinki Tel: (+358) 9 2284 81

Riga Duntes str. 6 LV-1013 Riga Tel: (+371) 7 821 811

Copenhagen Arne Jacobsens Allé 16, 3. t.v. DK-2300 Copenhagen S Tel: (+45) 3336 0170

Vilnius Gynėjų str. 16 LT-01109 Vilnius Tel: (+370) 5231 2222

Berlin Ahornstraße­ 16 D-14163 Berlin Tel: (+49) 30 802 10 21

Prague Karolinská 650/1 CZ-186 00 Prague 8 Tel: (+420 2) 8401 1010

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100 %

Stock exchange announcement no. 1/2008, TK Development A/S

Warsaw ul. Mszczonowska 2 PL-02-337 Warsaw Tel: (+48) 22 572 2910

Sofia The Executive Center, 7th fl. 2a, Saborna Street BG-1000 Sofia Tel: (+359) 2 9264 180


Stock exchange announcement no. 1/2008

TK Development anticipates continued growth Updated profit forecast for 2007/08, projecting a profit of DKK 240-250 million after tax and minority interests. Profit forecast of about DKK 300 million after tax for the 2008/09 financial year.

Summary: •

• • •

The Group expects a profit of DKK 240-250 million af-

This stock exchange announcement has been issued to update

ter tax and minority interests for the 2007/08 financial

the profit forecast for the current financial year, and to provide

year.

information about the development in newly added projects,

For the 2008/09 financial year, the Group expects to ge-

the progress of projects in the existing project portfolio and

nerate a profit after tax of about DKK 300 million.

the development in the Group’s project portfolio. The con-

A satisfactory number of new projects was added to the

tent structure of this announcement will be the same in future

portfolio during the period under review.

quarterly interim reports, which the Group will issue after the

The Group’s project portfolio has developed as planned,

end of Q1 and Q3 as from the 2008/09 financial year.

comprising a total of 1,306,000 m² at 31 October 2007. At the end of January 2008, the project portfolio is ex-

In addition, this announcement contains the profit forecast

pected to amount to about 1.1-1.2 million m², the same

for the next financial year.

level as at 31 July 2007. Further information is available from Frede Clausen, President and CEO, on tel. +45 8896 1010.

Shopping centre, Nowy Sacz, Poland

Stock exchange announcement no. 1/2008, TK Development A/S

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Stock exchange announcement no. 1/2008

Profit for the 2007/08 financial year The TK Development Group has updated its profit forecast for the 2007/08 financial year and now estimates that the Group will report a profit of DKK 240-250 million after tax and minority interests, compared to the previously announced profit estimate of minimum DKK 240 million.

projects of about 29,000 m² and plans to hand over projects totalling about 260,000 m² for the full 2007/08 financial year.

listed a number of projects that are expected to contribute to earnings for the second half of the 2007/08 financial year. The status of these projects appears from the outline.

Other projects/sale of land Galeria Biala, Bialystok, Poland Targówek Retail Park, Warsaw, Poland Extension of the Plejada Shopping Centre, Sosnowiec, Poland Sale of land, Reduta, Warsaw, Poland Ostrava Retail Park, Ostrava, Czech Republic Extension of the Futurum Shopping Centre, Ostrava, Czech Republic Total

Spinderiet, Valby, Denmark This multifunctional shopping and metropolitan centre, which consists of retail, restaurant, office, leisure and residential facilities, opened on 15 November 2007. The project, ment company. The housing part, which consists of 2,500 m² of rental units and 9,500 m² of owner-occupied units, has been sold to DVB and a private investor, respectively. Retail park, Århus South, Denmark

The Group’s Interim Report for the first six months of 2007/08

Milgravja Street, Riga, Latvia

first half of the year are outlined below.

excl. housing, has been sold to DADES, a property invest-

In the first six months of 2007/08, the Group handed over

Project The Spinderiet shopping and metropolitan centre, Valby, Denmark Retail parks in Århus and Esbjerg, Denmark Retail parks in Stockholm, Örebro and Växjö, Sweden Retail parks in Lohja and Lappeenranta, Finland

projects during the period since the Interim Report for the

Floor space (m²) Status 36,200

Opened

5,000

Opened

6,400

Opened

8,700

Opened

Documents under prep. 59,000 Partially completed 46,000 Opened 20,000

This project consists of a retail park of about 5,400 m², to be built in two phases, of which the first completed phase of about 2,500 m² was handed over to the investors, a property company and a user, in November 2007. Retail park, Storegade, Esbjerg, Denmark This 2,500 m² retail park has been fully let and sold to a property company. Construction started in spring 2007, and the retail park was handed over to the investor in October 2007. AaB College, Aalborg, Denmark Part of the area at Hadsundvej, Aalborg, has been sold to Aalborg Boldspilklub A/S, and the development comprises a sports college with course and conference facilities as well as accommodation for students, with a total floor space of

24,400

Opened

3,600

Opened

vious financial year, and the second phase was handed over in

9,800

Completed

November 2007. This project is included in the above outline

10,300

Opened

under “Other projects/sale of land”.

3,000

Opened

approx. 232,000

approx. 15,500 m². The first phase was handed over in a pre-

Retail park, Marieberg, Sweden

A few projects are expected to be finally transferred to the

The 6,350 m² retail park project in Örebro, Sweden, is to be

investor in January 2008.

developed in two phases. The first phase of about 2,350 m² has been fully let and was handed over to Oppenheim Immo-

The most important developments in the above-mentioned

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Stock exchange announcement no. 1/2008, TK Development A/S

bilien Kapitalanlagegesellschaft mbH in October 2007.


Stock exchange announcement no. 1/2008

Retail park, Botkyrka, Stockholm, Sweden

Sale of land, Reduta, Warsaw, Poland

This project consists of a 2,400 m² retail park. All premises

As mentioned in the Interim Report for the first six months

have been fully let. Upon completion, the retail park was han-

of 2007/08, a conditional agreement was made with an inve-

ded over to a private investor in October 2007.

stor during the first half of 2007/08 regarding the investor’s

Retail parks, Finland The project in Lappeenranta consists of a 3,800 m² retail park. Following completion of construction, the retail park

purchase of the land and a blueprint project. When the conditions for completion of the sale had been fulfilled, the sale was completed.

was handed over to a private investor in November 2007. The

Ostrava Retail Park, Czech Republic

4,900 m² retail park in Lohja was also completed and handed

This 10,300 m² retail park has been built on Euro Mall Hol-

over to a private investor in November 2007.

ding’s site at the Futurum Shopping Centre in Ostrava. The

Milgravja Street, Riga, Latvia In January 2008, agreement was reached on the sale of the

retail park opened on 26 September 2007 and was handed over to GE Real Estate Central Europe.

Group’s project at Milgravja Street, Riga, comprising options

Extension of the Futurum Shopping Centre, Ostrava, Czech Re-

to construct about 20,000 m² of residential property.

public

Galeria Biala, Bialystok, Poland This 46,000 m² shopping centre, developed in cooperation with Meinl European Land Ltd., comprises a hypermarket, about 90 speciality stores and leisure facilities. The shopping centre opened on 5 December 2007, and all premises have

Euro Mall Holding has handled the development and construction of a 3,000 m² extension of this centre on behalf of GE Capital/Heitman. The extension opened on 22 November 2007.

Outlook for 2008/09

been fully let. Targówek Retail Park, Warsaw, Poland This project consists of a 24,400 m² retail park situated next to the Targówek Shopping Centre. The project comprises 11 retail units, which have been opened successively in step with completion. The whole retail park was handed over to Credit Suisse Asset Management Immobilien Kapitalanlagegesellschaft in November 2007. Extension of the Plejada Shopping Centre, Sosnowiec, Poland Euro Mall Holding has handled the development and construction of a 3,600 m² extension of this centre on behalf of St. Martins Property Corporation Limited. The extension of the centre opened on 28 November 2007.

For the 2008/09 financial year, the Group expects to generate a profit after tax of about DKK 300 million. This corresponds to a rate of return on equity of about 20 %. TK Development has an option to acquire the remaining ownership share held by the Investment Fund for Central and Eastern Europe in Euro Mall Holding A/S. The above profit forecast assumes that this option will be exercised effective 1 February 2008. The profit forecast only includes value adjustments of the Group’s investment properties that result from indexation of rent and any improved operating results. Thus, it does not include any value adjustments following from changes in fixed

Stock exchange announcement no. 1/2008, TK Development A/S

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Stock exchange announcement no. 1/2008

return requirements or the possible sale of one or more of the

In addition, the development of several small and medium-

investment properties involved.

sized retail projects has been initiated on the Danish market.

The profit forecast for 2008/09 is based on the following market conditions: •

There is sustained high demand from retailers in all markets, and the rental level is slightly increasing.

Construction costs have increased due to capacity problems in the sector, but TK Development expects this situation, which is at times overheated, to gradually revert to normal in the course of 2008.

The current international credit crisis means that some buyers will face higher financing costs and more rigorous equity requirements. They will thus expect higher retuns, particularly in the Northern European market. Investors continue to show keen interest in buying real property projects, but the credit crisis has sharpened their focus on project quality. The credit crisis is not expected to have direct impact

Bazaar, Gothenburg, Sweden TK Development and the Swedish housing developer JM AB have entered into a cooperation agreement with SKF Sverige AB to develop SKF’s former factory area in the old part of Gothenburg. The contemplated project comprises a total floor space of about 75,000 m²: 30,000 m² for a shopping centre, 15,000 m² for services/commercial use and 30,000 m² for housing. TK Development will be in charge of developing the 45,000 m2 for a shopping centre, services and commercial facilities, while JM AB will have responsibility for the 30,000 m2 of housing. The acquisition of land for the project will be completed following the adoption of a local plan, expected in autumn 2009. Kofoten, Kristianstad, Sweden TKD Nordeuropa has acquired a property in Kristianstad and is planning a conversion and extension in order to establish a retail park of about 5,800 m². Construction is expected to start in spring 2008 and to be completed by early 2009.

on TK Development. In the short term, the Group has

Shopping centre, Hyvinkää, Finland

already sold the majority of its projects. Moreover, in-

TKD Nordeuropa has acquired a right to buy a tract of land

vestors buying TK Development’s projects are primarily

in Hyvinkää in Finland for the purpose of constructing an

consolidated companies for which the credit crisis is not

18,500 m² combined shopping centre, hotel, office and medi-

expected to have any significant importance.

cal clinic. In addition, the project comprises about 6,700 m²

Project developments Office project, Vejle, Denmark

of residential space. The local plan is expected to be adopted at the beginning of 2008 so that construction can begin in mid2008, with the opening scheduled for spring 2010.

In Vejle, TKD Nordeuropa has acquired an option to buy a

Maskavas Retail Park, Riga, Latvia

tract of land to construct an office building of about 30,000

TKD Nordeuropa has acquired an option to buy a tract of

m². The local plan for the area is expected to be adopted at

land in the southern part of Riga for the purpose of develo-

the end of 2008. The project is estimated to be completed by

ping an 8,000 m² retail park. Construction is estimated to

early 2010.

start at the end of 2008 once the relevant authority approvals are in place, with completion scheduled for late 2009.

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Stock exchange announcement no. 1/2008, TK Development A/S


Stock exchange announcement no. 1/2008

Bulgaria

The table below shows the number of square metres in the

As previously announced, TK Development opened an office

project portfolio, distributed mainly on the two business units

in Sofia in spring 2007 to investigate the potential for develo-

and, to a lesser degree, on the Parent Company.

ping shopping centres and retail parks in Bulgaria. Potential locations in major towns and cities are being investigated, and work has started on several specific projects. Within a short period of time, it is anticipated that Bulgaria will contribute to strengthening the Group’s overall project portfolio.

The Group’s project portfolio The Group’s project portfolio comprised 1,306,000 m² at 31 October 2007. When taking into account the projects handed over since then, the projects to be handed over in January 2008 and the new projects added, the Group expects its project portfolio to be in the 1.1-1.2 m² million range at the end of January 2008, the same level as at 31 July 2007.

Projects at 31 Oct. 2007

TKD Nordeuropa

Euro Mall Holding

TKD, Parent Company

Group, total

Per cent of total

('000) m² Sold Completed In progress Not initiated Total

0 115 14 129

10 120 146 276

0 0 0 0

10 235 160 405

0.8 % 18.0 % 12.2 % 31.0 %

Remaining Completed In progress Not initiated Total

0 45 500 545

0 40 302 342

2 0 12 14

2 85 814 901

0.1 % 6.5 % 62.4 % 69.0 %

Total project portfolio

674

618

14

1.306

100.0 %

Table 2

The Group’s closing project portfolio at 31 October 2007

A more detailed description of all major projects appears from

consists of sold projects of 405,000 m² and remaining pro-

the section concerning the project portfolio under each of the

jects of 901,000 m2.

individual business units.

The development at Group level is outlined below:

TK Development, the Parent Company

31 Jan. 2006

31 Jan. 2007

31 July 2007

31 Oct. 2007

Completed In progress Not initiated

21 188 80

0 207 144

0 220 185

10 235 160

Total

289

351

405

405

(’000) m²

Sold

Completed In progress Not initiated

58 30 632

14 42 754

2 84 671

2 85 814

Total

720

810

757

901

1,009

1,161

1,162

1,306

90

94

88

92

Number of projects Table 1

for TKD Nordeuropa and Euro Mall Holding as well as the Bulgarian activities. Moreover, this part of the Group owns the projects in Germany and Russia and a few other assets. The activities in this part of the Group have undergone no sig-

Remaining

Total project portfolio

TK Development, the Parent Company, is a holding company

nificant changes compared to the description in the Group’s Interim Report for the first six months of 2007/08.

TKD Nordeuropa The Group’s activities in Northern Europe are placed in the wholly-owned subgroup TKD Nordeuropa. TKD Nordeuro-

Stock exchange announcement no. 1/2008, TK Development A/S

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Stock exchange announcement no. 1/2008

pa primarily operates in the segments consisting of retail pro-

property company and a user, in November 2007. The second

perty (shopping centres and retail parks), office property and

phase has been sold to a property company based on forward

mixed-segment projects.

funding. Construction will start once the letting status and relevant authority approvals are in place.

Since the Group presented its Interim Report for the first six months of 2007/08, it has recorded satisfactory progress in its ongoing projects and a satisfactory intake of new projects. Project portfolio The development potential of the project portfolio represented 674,000 m² at 31 October 2007, of which sold projects accounted for 129,000 m² and remaining projects for 545,000 m². The project portfolio had a total development potential of 591,000 m² at 31 January 2007 and 531,000 m² at 31 July 2007.

Østre Havn/Stuhrs Brygge, Aalborg, Denmark In the area previously occupied by Aalborg Shipyard at Stuhrs Brygge, TKD Nordeuropa is developing a business and residential park of about 80,000 m², for which TKD Nordeuropa regularly buys land for new project development. In the first half of 2007/08, TK Development sold a shipyard workshop, which is deemed worthy of preservation, to a private investor. In addition, attempts are being made to amend the local plan for the purpose of changing the zoning status of 10,400 m² from office to residential use. The local plan is expected to be completed by mid-2008.

Projects Amerika Plads, Copenhagen, Denmark Shopping centre, Frederikssund, Denmark

Kommanditaktieselskabet Danlink Udvikling (DLU), which

TKD Nordeuropa has acquired several properties in Frede-

is owned 50/50 by the Arealudviklingsselskabet I/S and TKD

rikssund with a view to constructing a shopping centre. The

Nordeuropa, owns three projects at Amerika Plads: Lot A, lot

project consists of 25,800 m², of which 4,500 m² will be let

C and an underground car park. A building complex with

to a supermarket operator and the remaining 21,300 m² to

about 13,500 m² of office space is to be built on lot A, and a

specialty stores and restaurants. In addition, TKD Nordeuro-

building complex with about 11,000 m² of commercial and

pa will have an option to construct about 3,000 m² of office

residential space on lot C. Construction will take place as the

space and about 2,000 m² of residential units. The occupancy

space is let. Part of the underground car park in the Amerika

rate has reached almost 45 %, and the anchor tenants include

Plads area has been built, and is operated by Europark. The

Kvickly, Fakta, Hennes & Mauritz, Synoptik and Skoringen.

total parking facility is expected to be sold upon completion.

The local plan for the area was adopted in December 2007. Construction is expected to start at the beginning of 2008, and the opening is scheduled for the end of 2009. A multistorey car park with about 800 parking spaces will be established in conjunction with the centre.

The project is being developed in a 50/50 joint venture with Miller Developments, an experienced factory outlet developer. This project consists of a 12,000 m² factory outlet centre as well as restaurant facilities and about 1,000 parking spaces.

Retail park, Århus South, Denmark

This will be the first major factory outlet centre in Denmark,

In Århus, the Group is developing a 5,400 m² retail park. The

and the letting process is underway. The factory outlet is sche-

project consists of two phases, of which the first completed

duled to open on 6 March 2008. After start-up and maturing,

phase of about 2,500 m2 was handed over to the investors, a

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Ringsted Factory Outlet, Ringsted, Denmark

Stock exchange announcement no. 1/2008, TK Development A/S


Stock exchange announcement no. 1/2008

Project outline The outline below lists the key projects of TKD Nordeuropa’s project portfolio. Floor space (m²)

TKD’s ownership interest

Construction start/ Expected construction start

Opening/ Expected opening

Project name

City/town

Segment

Denmark Ringsted factory outlet

Ringsted

13,200

Østre Teglgade

Copenhagen

Amerika Plads, underground car park Spinderiet Ejby Industrivej Vandtårnsvej Hadsundvej AaB College, phase II

Copenhagen Valby Copenhagen Copenhagen Aalborg Aalborg

Retail Office/ Residential Underground car park Mixed Office Office Mixed Mixed

36,200 15,400 21,000 25,800 9,100

100 % 100 % 50 % 100 % 100 %

Early 2005 Late 2008 Mid-2008 Early 2008 Late 2006

November 2007 Late 2009 Continuous Continuous November 2007

Østre Havn/Stuhrs Brygge

Aalborg

Mixed

80,000

50 % 1)

Continuous

Continuous

Amerika Plads, lot C Amerika Plads, lot A

Copenhagen Copenhagen

Mixed Office

11,000 13,500

Retail park, Århus South

Århus

Retail

5,400

100 % Spring 2007

Shopping centre, Frederikssund

Frederikssund

30,800

100 % Early 2008

Late 2009

Neptunvej Retail park, Tagtækkervej Office project, Vejle

Randers Odense Vejle

Retail/ Residential Mixed Retail Office

Late 2010 Late 2010 Phase 1: November 2007. Phase 2: Early 2010.

13,000 6,800 30,000

100 % Late 2008 50 % Mid-2007 100 % Early 2009

Late 2009 Mid-2008 Early 2010

Entré, multifunctional centre Bazaar, Gothenburg Retail park, Karlstad Retail park, Barkarby, phase IV Retail park, Marieberg, phase II

Malmö Gothenburg Karlstad Barkarby Örebro

Mixed Mixed Retail Retail Retail

39,500 45,000 15,000 5,600 4,000

100 % 100 % 100 % 100 % 100 %

Retail park, Söderhamn

Söderhamn

Retail

6,800

100 % Spring 2008

Retail park, Nyköping Retail park, Kofoten, Kristianstad

Nyköping Kristianstad

Retail Retail

5,000 5,800

100 % Autumn 2007 100 % Spring 2008

Spring 2009 2012 Late 2011 Autumn 2008 Autumn 2008 Phase 1: Spring 2009. Phase 2: Mid-2009. Mid-/Autumn 2008 Early 2009

Tammerfors Lohja Lappeenranta Seinäjoki Hyvinkää

Retail Retail Retail Retail Mixed

5,300 4,900 3,800 6,750 25,200

100 % 100 % 100 % 100 % 100 %

Mid-2008 Early 2007 Spring 2007 Mid-2007 Mid-2008

Early 2009 November 2007 October 2007 Autumn 2008 Spring 2010

Vilnius Riga Riga Riga

Retail Residential Retail Retail

18,500 20,000 12,400 8,000

100 % 50 % 100 % 100 %

Spring 2008 Early 2008 Spring 2008 Late 2008

Spring 2009 Late 2008 Late 2009

24,000 32,000

50 % Autumn 2006 100 %

March 2008

2008

Continuous

50 % 2004

Continuous

1)

50 % 2008 50 % 2008

Sweden Mid-2006 Early 2010 Late 2010 Late 2007 Late 2006

Finland Tammerfors Retail Park, phase II Lohja Retail Park Retail park, Lappeenranta Retail park, Seinäjoki Shopping centre, Hyvinkää Baltic States Rubicon Milgravja Street Ulmana Retail Park Maskavas Retail Park TKD Nordeuropa, total floor space

approx.

600,000

1) TKD Nordeuropa’s share of profit on development amounts to 70 %.

Stock exchange announcement no. 1/2008, TK Development A/S

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Stock exchange announcement no. 1/2008

the factory outlet is expected to be sold. Hadsundvej, Aalborg, Denmark

areas and underground parking facilities with 900 spaces.

When KMD moved to new corporate headquarters at Stuhrs

Retail park, Marieberg, Sweden

Brygge in Aalborg, TKD Nordeuropa took over the company’s

The 6,350 m² retail park project in Örebro, Sweden, is to be

previous headquarters property at Hadsundvej in Aalborg.

developed in two phases. The first phase of about 2,350 m²,

The site is located close to the city centre and the university.

which has been fully let, was handed over to Oppenheim Im-

The project area covers 25,800 m², and current plans provide

mobilien Kapitalanlagegesellschaft mbH in October 2007.

for a project with residential and office premises. The develop-

The remaining premises of about 4,000 m² comprised by the

ment of residential and office premises will be phased in step

second phase are being let, and the project is expected to be

with letting or sale. In the first half of 2007/08, an agreement

handed over in autumn 2008. The investor has an option to

was made regarding the sale to a private investor of an option

buy the second phase of the project.

to build residential property of about 14,000 m². The sale is subject to permission being granted for the planned construction of residential property. The local plan is currently being prepared. The sale is expected to be completed once the local plan has been adopted, presumably in early 2008.

Retail park, Söderhamn, Sweden The Group is developing a 6,800 m² retail park on land in Söderhamn, Sweden. The retail park will be built in two phases, of which the first phase covers 3,300 m². The letting of premises is proceeding, and lease agreements have been signed

Østre Teglgade, Copenhagen, Denmark

for some of them. A building permit is expected to be granted

This project area covers 24,000 m² attractively located at Tegl-

in spring 2008, and the first phase is scheduled to open in

holmen. Owned by TKD Nordeuropa, the land is well-suited

spring 2009 and the second in mid-2009. A letter of intent

for a housing or office project. The project may be built in

with a private investor has been signed.

phases in step with letting and/or sale.

10/16

accommodation. In addition, the centre will have common

Retail park, Barkarby, Stockholm, Sweden

The Entré multifunctional centre, Malmö, Sweden

This project consists of a retail park that will cover 23,050 m²,

In the 2006/07 financial year, TKD Nordeuropa sold the

distributed on seven stores, when fully developed. Construc-

Entré multifunctional centre in Malmö to CGI – Commerz

tion will be phased in step with letting. The first phase of 4,000

Grundbesitz Investmentgesellschaft mbH. The selling price

m², which has been let to Jula and Färgtema, was completed

has been fixed on the basis of a return requirement of 6 %,

and handed over to the investor in July 2006. The second and

and the sales agreement is based on forward funding. Con-

third phases, consisting of 13,450 m² let to Intersport, Asko,

struction commenced in mid-2006, and the occupancy rate

Mio and Pay C, were handed over to the investor in autumn

is about 60 %. The anchor tenants include Hennes & Mau-

2006. The last and fourth phase has been extended to 5,600

ritz, Lindex, Hemköp, Intersport, SF Bio (Svensk Film) and

m² with public authority approval, and a lease agreement has

Sats. The opening of the centre is scheduled for spring 2009.

been concluded with the electronics chain Media Markt. A

The centre will be developed as a multifunctional project of

building permit for the last phase was issued in October 2007,

39,500 m², of which 25,000 m² has been allocated for retail

and construction has started. The last phase is expected to be

stores, 10,700 m² for restaurants, cinema, fitness and bowling

handed over in October 2008. The total project has been sold

facilities, 1,100 m² for offices and 2,700 m² for residential

to the German investment fund Commerz Grundbesitz Spez-

Stock exchange announcement no. 1/2008, TK Development A/S


Stock exchange announcement no. 1/2008

ialfondsgesellschaft mbH on the basis of forward funding. Retail park, Nyköping, Sweden This 5,000 m² project consists of two rental units, and a lease agreement has been signed for one of these units. Following the issuance of a building permit for the project, construction started at the end of 2007. The two rental units are scheduled to open in mid-2008 and autumn 2008, respectively. A letter of intent has been signed by a private investor.

Euro Mall Holding The TK Development Group carries on its activities in Central Europe primarily through Euro Mall Holding, which is 90 % owned by the TK Development Group, with the remaining 10 % owned by the Investment Fund for Central and Eastern Europe.

Project portfolio

Retail park, Seinäjoki, Finland TKD Nordeuropa has acquired a tract of land in the Finnish

The development potential of the project portfolio repre-

town Seinäjoki for the purpose of establishing a 6,750 m² re-

sented 618,000 m² at 31 October 2007, of which sold pro-

tail park. Construction was initiated in August 2007 and is

jects accounted for 276,000 m² and remaining projects for

expected to be completed in autumn 2008. The current oc-

342,000 m². The project portfolio has developed as planned,

cupancy rate is 71 %. The project has been sold to a private

which means that several projects have been completed and

investor, based on forward funding.

handed over, and that the remaining projects have recorded satisfactory progress.

Retail park, Rubicon, Vilnius, Lithuania TKD Nordeuropa has acquired a plot of land in Vilnius for

The project portfolio had a total development potential of

the purpose of building an 18,500 m² retail park. An ap-

about 554,000 m² at 31 January 2007, and about 617,000

plication for project approval has been submitted, and con-

m² at 31 July 2007.

struction is expected to start in spring 2008, with the opening scheduled for spring 2009. Letting has started, and the first

For a more detailed description of the Group’s investment

Heads of Terms have been signed by tenants. Negotiations

properties, reference is made to the Group’s Annual Report

with potential investors for the project are ongoing.

for 2006/07 and Interim Report for the first six months of

Ulmana Retail Park, Riga, Latvia In Riga, TKD Nordeuropa has acquired a plot of land on which the construction of a 12,400 m² retail park is planned. Letting is ongoing, and Heads of Terms have been signed for

2007/08 as no major changes have occurred in relation to the description in those reports. Projects

most of the premises. Construction is expected to commence

Stocznia Multifunctional Centre, Young City, Gdansk, Poland

in spring 2008, and the retail park is scheduled to open at

This multifunctional centre in Gdansk, Poland, will have to-

the end of 2008. Negotiations with potential investors for the

tal premises of about 94,000 m², to be developed in a joint

project are ongoing.

venture with Meinl European Land Ltd. The centre will comprise retail, restaurant and leisure facilities of about 57,000 m², an office tower of about 15,000 m² and two residential

Stock exchange announcement no. 1/2008, TK Development A/S

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Stock exchange announcement no. 1/2008

Stocznia Multifunctional Centre, Young City, Gdansk, Poland

Bazaar, Gothenburg, Sweden

Ulmana Retail Park, Riga, Latvia

Lohja Retail Park, Lohja, Finland

Spinderiet, Valby, Denmark

Prague Outlet Center, Prague, Czech Republic

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Stock exchange announcement no. 1/2008

Project outline The outline below lists the key projects of Euro Mall Holding’s project portfolio. Project name

Floor space (m²)

TKD’s ownership interest

Construction start/ Expected construction start

City/town

Segment

Prague Airport Ruzyne II

Prague

Mixed

20,000

Prague Outlet Center

Prague

Retail

25,000

75 % Spring 2007

Sterboholy Retail Park Ostrava Retail Park Futurum Shopping Centre, extension

Prague Ostrava Ostrava

Retail Retail Retail

7,000 10,300 3,000

100 % 2010 100 % Early 2007 20 %1) Spring 2007

Liberec Retail Park

Liberec

Retail

17,100

100 % Autumn 2007

Kolin Shopping Centre Most Retail Park

Kolin Most

Retail Retail

10,000 8,400

100 % Autumn 2007 100 % Early 2008

Gdansk

Mixed

94,000

Opening/ Expected opening

Czech Republic 100 % 2010

2011 Phase 1: November 2007. Phase 2: Late 2010. 2011 Sep-07 Nov-07 Phase 1: Autumn 2008. Phase 2: Spring 2009. Autumn 2008 Late 2008

Poland Stocznia Multifunctional Centre, Young City Galeria Biala Targówek Retail Park Bytom Retail Park Tivoli Residential Park, Targówek Poznan Warta Reduta III Plejada Shopping Centre, extension Residential Park, Bielany Shopping centre, Tarnow Shopping centre, Nowy Sacz Shopping centre, Jastrzębie Euro Mall Holding, total floor space

Bialystok Warsaw Bytom

Retail Retail Retail Residential/ Warsaw Services Retail/ Poznan Residential Warsaw Office Sosnowiec Retail Residential/ Warsaw Services Tarnow Retail Nowy Sacz Retail Jastrzebie Retail approx.

45 % Mid-2008

Late 2010

46,000 24,600 25,800

24 % Autumn 2006 100 % Autumn 2006 100 % 2008

26,400

100 % Spring 2007

Dec-07 August-November 2007 Continuous Phase 1: Mid-2008. Phase 2: Late 2008.

50,000

1)

100 % 2008

Continuous

9,800 3,600

100 % 100 % Late 2006

Nov-07

60,000

100 % Mid-2008

Continuous

14,300 14,800 43,300

100 % Early 2008 100 % Early 2008 2) Mid-2008

Late 2008 Late 2008 Autumn 2009

-

515,000

1) Euro Mall Holding´s share of profit on development amounts to 50 %. 2) Based on fee income.

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Stock exchange announcement no. 1/2008

towers totalling about 22,000 m². The land for the project has

Shopping centre, Nowy Sacz, Poland

been acquired from the Baltic Property Trust Group, which

Euro Mall Holding has acquired a plot of land in the Polish

will also hold a long-term investment in the office section.

town of Nowy Sacz for the purpose of constructing a shop-

Meinl European Land Ltd. has undertaken the overall project

ping centre with a 5,000 m² hypermarket and specialty stores

financing and will retain a long-term investment in the retail,

of about 9,800 m². The current occupancy rate is 91 %. A

restaurant and leisure premises. The residential units are ex-

building permit has been granted for the project, and con-

pected to be sold to private owner-occupants. Negotiations

struction is expected to start in early 2008, with the opening

are being held with several tenants, all indicating keen interest

scheduled for late 2008. Negotiations with potential investors

in renting premises in the centre. During the development

for the project are ongoing.

period, TK Development will generate earnings through fee income and a profit share based on the rental income obtained

Shopping centre, Tarnow, Poland

when the centre opens. An application for a building permit

In the Polish town of Tarnow, Euro Mall Holding has acquired

has been submitted, construction is expected to start in mid-

an area of land for the purpose of building a 14,300 m² shop-

2008, and the opening is scheduled for end-2010. This pro-

ping centre, of which a supermarket will account for about

ject represents the first phase of a major development plan for

2,500 m² and specialty stores for about 11,800 m². An appli-

the whole area.

cation has been submitted for a building permit, expected to

Bielany Residential Park, Warsaw, Poland Euro Mall Holding has acquired a tract of land in Warsaw allowing for the construction of 900-1,000 residential units.

end of 2008. The current occupancy rate is 80 %, and negotiations with potential investors for the project are ongoing.

The plan is to build the project in four phases. The planned

Galeria Biala, Bialystok, Poland

project can be accommodated within the existing local plan,

This shopping and leisure centre in Bialystok, Poland, has been

and a building permit for the project is expected to be issued

developed in cooperation with Meinl European Land Ltd. The

in mid-2008, with construction of the first phase to start im-

46,000 m² shopping centre, which comprises a hypermarket,

mediately afterwards and handing-over scheduled for early

about 90 speciality stores and leisure facilities, opened on 5

2010. The remaining phases are expected to be handed over

December 2007. The centre has been fully let and is expected

successively until 2012. The residential units are expected to

to be handed over to the investor in January 2008.

be sold as owner-occupied units to private users.

Tivoli Residential Park, Targówek, Warsaw, Poland

Shopping centre, Jastrzębie, Poland

The Group is developing its first housing project in Poland

This project, consisting of a 43,300 m² shopping centre, will

on the land owned by Euro Mall Holding in the Targówek

be implemented by Meinl European Land Ltd., with Euro

area in Warsaw. When fully developed, the multi-phase pro-

Mall Holding as the project developer. Thus, Euro Mall Hol-

ject will consist of 280 residential units and ground-floor

ding has entered into an agreement with Meinl regarding

premises for service trades. The residential units will be sold

Euro Mall Holding’s assistance for development, letting and

as owner-occupied apartments. The construction of the first

construction management of the project on a fee basis. Con-

phase of about 140 residential units, of which 97 % have been

struction is expected to start in mid-2008, and the centre is

sold, started in spring 2007 and is expected to be completed

scheduled to open in autumn 2009.

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be issued in early 2008. The centre is scheduled to open at the

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Stock exchange announcement no. 1/2008

by mid-2008. The second phase is also expected to comprise

lowing the issuance of a building permit for the project, con-

about 140 units. To date, sales agreements for about 40 %

struction started in October 2007. The centre is expected to

of the units in the second phase have been concluded. The

open in autumn 2008. Binding lease agreements for more

construction of the second phase is scheduled for completion

than half the premises have been signed. The project has been

at end-2008.

sold to GE Real Estate Central Europe on the basis of forward

Bytom Retail Park, Bytom, Poland

funding.

Euro Mall Holding intends to develop a retail park with total

Most Retail Park, Czech Republic

leasable space of about 25,800 m² on its plot at the Plejada

Euro Mall Holding has acquired a plot of land in the Czech

Shopping Centre in Bytom, which is centrally located in the

town Most for the purpose of establishing an 8,400 m² retail

Katowice region. Construction of the project will be phased

park. A detailed project plan has been drawn up, letting has

in step with letting. Letting efforts are ongoing, and construc-

been initiated, and a building permit is expected to be issued

tion will be started as space is let.

in early 2008. Completion of the project is scheduled for the

Prague Outlet Center, Prague, Czech Republic Euro Mall Holding is developing a 25,000 m² factory outlet

end of 2008.

Other matters

centre on its centrally located site in Prague. The first phase of about 18,000 m² opened on 15 November 2007. The current

For a more detailed description of other matters relating to

occupancy rate for the first phase is 65 %, which Management

the Group, including risk issues, reference is made to the

considers satisfactory for a factory outlet project. The project

Group’s Annual Report for 2006/07 and the Group’s Interim

is being developed in a joint venture with an international col-

Report for the first six months of 2007/08, both available at

laboration partner with factory outlet experience, which ac-

the Group’s website www.tk-development.dk.

quired 25 % of the project in the 2006/07 financial year. After start-up and maturing, the centre is expected to be sold. Liberec Retail Park, Czech Republic This project consists of a 17,100 m² retail park and will be built in phases, the first covering about 11,400 m² and consisting of 13 units. Letting has been initiated, and binding lease agreements for 70 % of the premises comprised by the first phase have been signed. Construction started in October 2007, with the first phase scheduled to open in autumn 2008 and the second in spring 2009. The project has been sold to GE Real Estate Central Europe on the basis of forward funding. Kolin Shopping Centre, Czech Republic This project consists of a 10,000 m² shopping centre. Fol-

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