DSB Ejendomsudvikling, NREP, Industriens Pension and Novo Holdings have entered into a joint venture agreement to redevelop Jernbanebyen (the Railway District) in Copenhagen. The goal is to create an attractive and healthy district focusing on climate, community and modern life.
The consortium that will be behind the comprehensive redevelopment of Jernbanebyen, Copenhagen’s new major district, is now in place.
DSB Ejendomsudvikling, Novo Holdings, Industriens Pension and NREP have signed a conditional joint venture agreement, which means that all of Jernbanebyen will be consolidated under joint ownership once a local plan for the district has been adopted.
Under the agreement, the partners have set a joint framework for the work to redevelop Jernbanebyen, which will be located on DSB’s former railway yard in the area of Copenhagen between Vesterbro, Kongens Enghave and Teglholmen. The ambition is to develop a district that sets new standards in sustainability and health in connection with urban redevelopment.
Consolidating the ownership
Jernbanebyen is currently owned partly by DSB and partly by Freja Ejendomme. In 2021, NREP, Industriens Pension and Novo Holdings entered into an agreement with Freja Ejendomme to purchase its land in Jernbanebyen. DSB Ejendomsudvikling A/S, which owns the largest part of the district, also wanted to find a joint venture partner to redevelop DSB’s part of the district. Based on the new agreement, the plan is now for the two parts of Jernbanebyen to be consolidated to enable the redevelopment of the whole district with the new consortium as owners.
“With the consortium behind the redevelopment of Jernbanebyen formally in place, we are ready to continue the work of developing the district sustainably to benefit Copenhagen and its residents,” says Søren Beck-Heede, CEO, DSB Ejendomsudvikling.
“We see great opportunities in consolidating the redevelopment of Jernbanebyen in a joint long-term partnership that will actively contribute to the shared vision of creating a green district for Copenhagen with a strong emphasis on sustainability and health. This investment fits well strategically with Novo Holdings’ focus on generating attractive long-term returns by investing in sustainable real estate and infrastructure,” explains Morten Beck Jørgensen, Managing Partner, Novo Holdings.
“We are delighted that we now have the opportunity to redevelop Jernbanebyen under one ownership consortium, in which all four parties have an ambition to create a healthy and diverse district with mixed types of housing, workplaces and a vibrant retail environment. With the overall redevelopment of Jernbanebyen, we will become co-owners of a vibrant and attractive new district, from which we expect an excellent long-term return for the consortium members,” says Søren Tang Kristensen, Head of Real Estate, Industriens Pension.
“We are looking forward to the collaboration and to putting all our efforts into redeveloping Jernbanebyen in a unique concept, on which we particularly focus on creating a more sustainable city life, both socially and environmentally. Among other ways, we will achieve this by reducing CO2 emissions in both construction and operation and by making room for communities and healthy environments. In addition, Jernbanebyen will have a diverse mix of families with children and older people,” explains Thomas Riise-Jakobsen, Partner, NREP.
Consistently green character
Jernbanebyen is the last major site for urban redevelopment in southern and central Copenhagen. The 365,000-m2 urban area will be transformed into a new district that will have two large parks and three football fields. With a consistently green character, everyone in Jernbanebyen will live and work with nature up close in an otherwise partly car-free district.