From greenfield site to new urban area: Development of 27,000 m2 site for PFA in Slagelse

Over the coming years, a new urban area will spring up close to Slagelse town centre. With an investment of DKK 230 million, Danish pension provider PFA has taken over the 27,000 m2 site, which initially will see the construction of 150 flats for young people and 44 family homes.

DEAS Asset Management has identified this exciting development opportunity and turned it into a tangible business plan in which PFA chose to invest in June 2020.

The investment is part of PFA’s overall investment strategy, which focuses in particular on investing in real estate in Danish growth towns. Slagelse is an obvious candidate.

Slagelse is very interesting as it has seen significant population growth in recent years. The site size enables us to create a coherent and attractive new urban area close to Slagelse town centre,

says Mikael Fogemann, Head of Nordic Real Estate at PFA.

DEAS Asset Management has been selected to develop the project and has also assisted PFA with the transaction and buyer advisory services, for example identifying all risk aspects and ensuring PFA the best possible contractual terms.

From development idea to solid returns

The master plan for the area is currently being negotiated with the Municipality of Slagelse on behalf of PFA, which wants to build various housing types to meet the growing demand for rental housing in Slagelse.

In collaboration with PFA and the architect, DEAS Asset Management is busy preparing a building programme which will ensure the most effective utilisation of the site as well as attractive homes for different segments.

We’re currently at the early planning stage, where the creative concept development process, commercial opportunities, practicalities and financing all need to come together. We must secure the best possible returns for PFA for the benefit of the pension company’s members and realise a new urban area that meets the high ambitions for the area,

says Claus Skytte, Head of Development at DEAS Asset Management.

Sustainable construction guarantees long-term value

As part of PFA’s real estate strategy and its focus on sustainability, the homes will be built according to the sustainability certification DGNB Gold.

This means that we – as developers – must incorporate sustainability from the outset, and that we must plan and document all the chosen solutions. In order to meet PFA’s wish for project certification, we maintain a constant focus on the buildings’ sustainable qualities, including all environmental, financial, procedural, social and technical aspects.

The transformation from greenfield site to new urban area is being realised in several stages, and the first homes for young people and families are expected to be ready in autumn 2022.

Published 03. November 2020

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Claus Skytte

Head of Development
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