ÅRSRAPPORT 2004 Freja ejendomme A/S

This year, the development of Freja ejendomme has
once again been positive. The expectations expressed
last year have been outperformed, both with respect
to the sale of properties and additions to the portfolio.
The profit before tax for 2004 amounts to DKK
168.4 million. After tax, the profit is DKK 119.6
million.
2004 is the first year that Freja presents its financial
statements under the International Financial
Reporting Standards – IFRS. The Company’s decision
to prepare the financial statements in accordance
with IFRS as from 2004 has resulted in an
increase in the profit for the year before tax by
DKK 48.6 million. Restated to IFRS, the 2003 profit
for the year before tax has been correspondingly
reduced by DKK 48.6 million. The 2003 profit for
the year consequently amounts to DKK 67 million
compared with DKK 116 million as reported in the
Company’s Annual Report for 2003.
Freja’s equity amounts to DKK 716.4 million and
total assets at 31 December 2004 stand at DKK
869.7 million.
PROPERTY SALES AND ADDITIONS
During the year, six properties were sold and two
partially sold. Furthermore, in two instances adjustments
have been made to rights of construction
sold. The total sales amount was DKK 332.2 million
with proceeds of DKK 162.8 million.
In 2004, 21 properties located around the country
were added to our portfolio.
DEVELOPMENT HIGHLIGHTS
Freja treats every property individually because each
property has its own set of possibilities and challenges
to be dealt with. The Company continuously
develops a number of properties. The aim is to add
to the value of the individual properties. The rate at
which a development progresses cannot always be
predicted, because the political decision-making
process and other factors may cause delays.
During the year, the properties Herstedlund in
Albertslund, Bråbyvej in Haslev, Hambrosgade and
Margretheholm, both in Copenhagen, the state
ENGLISH SUMMARY
prison in Horsens and Randers Barracks demanded
the most development resources.
Krøyers Plads in Copenhagen has been the project
that has required the most management resources
during the year. This is primarily due to the great
interest from various sides in the hearing phase of the
local planning proposal. As yet, it has not been decided
whether the spectacular project, designed by the
Dutch architect Erick van Egeraat, will be given final
approval and consequently be realised. In any event,
the land has been sold to NCC, which owns the
absolute construction right to the area.
Based on an ideas competition for Herstedlund in
Albertslund, it was decided to develop a proposal
consisting of a wooded, plain-like area with eight
separate, oval sites. Each has the potential to hold
approx. 6,000 square metres of densely built-up area
with low buildings. The local plan for the area is a socalled
framework plan, which will not be finalised until
a supplemental plan sets out the detailed design of the
dwellings. Supplementary local plans have been
approved for three of the sites, which have been sold.
The remainder of the sites are expected to be sold in
2005.
The municipality of Copenhagen has indicated that
the proposed supplementary local plan for Margretheholm,
located north east of Holmen in Copenhagen,
will be submitted for consultation before the summer
holidays. With a local plan in place, it will be possible
to start development of an area of Copenhagen
formerly used by the Navy. It has not yet
been decided whether residential dwellings will be
constructed, but the municipality of Copenhagen
and Freja are both promoting this possibility.
Shortly after the summer holidays, Freja launched an
international ideas competition for the property in
Hambrosgade in Copenhagen. The property consists
of two sites of 15,200 and 6,000 square
metres, respectively. A local plan has already been
approved for the area, according to which both
sites are to be used for service trades. The next step
will be to sign an agreement with a future builder
based on the result of the ideas competition.
The development of the state prison in Horsens,
which is to be vacated towards the end of 2006, is
still ongoing. The municipality wishes the prison build-
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