Carnegie acted as exclusive financial advisor to FLSmidth in the establishment of a sale & partial leaseback partnership with ATP regarding FLSmidth’s HQ Site in Copenhagen (51,000 sqm site area and 30,000 sqm existing building area). With ATP Real Estate as the investor and landlord, a new FLSmidth HQ campus for more than 1,000 employees is to be constructed in the Northern part of the site. ATP will develop residential properties in the remaining parts of the site subject to the guidelines in a new local plan.
FLSmidth's historic head office at Vigerslev Allé in Copenhagen's Valby district has fallen behind the times, and the agreement signed between FLSmidth and ATP Real Estate marks the first step towards a new, modern campus on the site.
Converting the property into the new campus will involve a full-scale renovation of the historic buildings facing Vigerslev Allé worthy of preservation combined with the addition of brand new office facilities.
"Our existing buildings do not meet contemporary standards, so in any case we would need to find new premises within a short period of time. We wish to work with the municipal authorities to develop a new local plan, so we can retain our ties with the Valby district. With ATP Real Estate as the owner, we intend to commence a long-term partnership on developing the new campus and secure a presence for FLSmidth in the district for many years to come," said Christian Halken, country head and SVP, FLSmidth, in connection with announcement of the partnership.
The rest of the existing buildings are expected to be demolished, making room for new residential housing at the southern end of the FLSmidth site. The project, which will be developed and managed by ATP Real Estate, will be subject to a new local plan.
"We expect to build one of the most state-of-the-art corporate head offices in Copenhagen, and it will have the benefit of a long-term tenant. That will contribute to creating and retaining jobs in the city, while also assuring ATP's members of a stable return for many years to come. Building residential rental properties on the remaining part of the site fits in quite well with our investment strategy," said Michael Nielsen, CEO of ATP Real Estate, in connection with announcement of the partnership.
Construction is expected to commence in 2019-2020, depending on the local plan.