Køge, Denmark

Adjacent to Køge Station and the town centre shopping area, TK Development is building a 34,300 sqm project comprising a retail project of about 19,000 sqm, public service facilities of just under 9,000 sqm, including a town hall and a rehabilitation centre, and residential units of about 6,300 sqm. In addition, the project comprises parking facilities of about 13,000 sqm. The building rights for the town hall and the rehabilitation centre have been sold to Køge Municipality.

The 19,000 sqm retail project has been sold under a conditional sale agreement to Finnish-based Citycon together with parking facilities of about 13,000 sqm. The project will be handed over to Citycon in three phases. The first phase, comprising a cinema and restaurants, was completed in May 2017 and handed over to the buyer in July 2017.

In August 2017, one of the contractors on the project filed a petition in bankruptcy. This bankruptcy will delay the opening of the project’s retail section (second phase) and lead to substantial additional costs to complete the project and late delivery of some of the housing units. The shops included in the second phase are now scheduled to open on 28 September 2017.

While delayed, delivery of the second phase to Citycon is still expected to take place this autumn. The sale to Citycon is still expected to have a positive, if substantially reduced, impact on results for the 2017/18 financial year. A minor part of the project is scheduled for completion in 2018. 

The current occupancy rate for the total retail project is 91%. Tenants include Irma, Fakta, H&M, Bones, Kings & Queens, Sportigan, Wagner, Gina Tricot, Deichmann and a six-screen Nordisk Film cinema.

In the context of the 6,300 sqm residential project, TK Development is currently working on the development of about 3,000 sqm of housing units in Rådhusstrædet. A total of 28 residential units will be constructed, consisting of both owner-occupied units and two-storey town houses. The pre-completion sale has begun. Construction will be carried out in connection with the rest of the project, and the first residential units are expected to be ready for handover at the end of 2017.