Carlsberg A/S announced last week that it will sell 75 percent of its historic brewery grounds in Valby to a property development consortium.
The company said in a statement that the sale price for the property was 2.5 billion kroner, which will result in an after-tax profit of 1.4 billion kroner in the second quarter. Analysts said that the sale will free up cash for Carlsberg, the world’s fourth largest brewer, which it can use to reduce debt and focus on growth through acquisitions.
The Valby brewery, which was built in 1847, was closed in 2008 and production was moved to Fredericia. Discussions to sell the land, which covers about 250,000 sqm, began in 2009.
Carlsberg plans to refurbish some of the historic buildings. The rest of the site will be developed into a mix of commercial and residential properties.
"Carlsberg Byen (Carlsberg City) will be a unique cultural, social and architectural experience at the highest international level,” said Carlsberg's communication director Jens Bekke.
The other members of the consortium are property investment company Realdania with a 25% stake, pension funds PFA Pension with 20 percent, and pension fund PenSam and insurer Topdanmark, both with 15 percent stakes.