Denmark: Carlsberg sells shopping centre under construction in Copenhagen

Carlsberg A/S announced on March 2 it has signed an agreement to sell the shopping centre Waterfront at present under construction. The shopping centre is expected to be completed and handed over to the buyer by the end of 2007.

The sale of Carlsberg's share of the shopping centre is expected to mean a gain of approximately DKK 120m in 2007 while the previously expected annual rental income of approx. DKK 15m will no longer figure in the accounts due to the sale. Carlsberg's share of the sales proceeds will amount to approx. DKK 350m. The sale of the shopping centre was not included in the comments on profit expectations in the announcement to the Copenhagen Stock Exchange of February 21, 2006.

Currently, agreements have been entered into on the delivery of properties/apartments at Tuborg Syd (Hellerup, Copenhagen) in the period 2006-08. The financial consequences of these agreements are that in 2006-2008 around DKK 410m, DKK 400m and DKK 20m, respectively, will be invested, while sales proceeds in 2006-2008 will be around DKK 105m, DKK 770m and DKK 780m, respectively.

Thus, the development of these properties will have a negative impact on free cash flow in 2006 as a result of investments which will not lead to sales until the following years. Gain on sales in 2006-2008 is expected to amount to around DKK 85m, DKK 275m and DKK 285m, respectively.

Carlsberg is one of the leading brewing groups in the world, with a large portfolio of beer and soft drinks brands. Its flagship brand – Carlsberg – is one of the fastest-growing and best-known beer brands in the world. More than 30,000 people work for Carlsberg at 92 local production sites in 48 countries, and its products are sold in more than 150 markets. In 2005 Carlsberg sold more than 100 million hectolitres of beer, which is about 83 million bottles of beer a day.

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