Gladsaxevej 22 - 26, 2860 Søborg
We have built 18 new apartments in the area known as Dyssegård north of Copenhagen, located at Gladsaxevej 22 - 26. The total size of the building is 1645m2 residential and 540m2 basement. The building quality is very high.
VID-20231007-WA0019
Financials
Year 2024 2034
Rents: 3.400.000 4.796.000
Costs: 400.000 800.000
Profit: 3.000.000 3.996.000
Value: 75.000.000 99.900.000
All amounts in DKK.
The 18 apartments have been let out at an average price of DKK 2.066,- pr m2. We estimate, based on demand, that re-lettings can be done at DKK 2.400 pr m2.
All 18 apartments in the building can be let out at market rates; the rental agreement made between owner and tenant is legally binding, no current danish legislation can overrule the rent level agreed on these apartments. Less than 5% of all rental units in the greater Copenhagen area is covered by this legislation. The remaining 95% of rental housing is covered by very strict and complicated legislation with regards to rent levels and tenant rights.
Rental income 2034 is based on 3,50% yearly increase in rents. This is a VERY low estimate.
The average increase in free rents over the last 60 years in Copenhagen is 7,00% yearly. Free rental levels for apartments have only existed since 1992, so the calculations are based on rental of 1 single room in Copenhagen in a large apartment, a market that has always been "free".
Costs are expected to double over the next 10 years, not because of maintenance, but tax increases.
Value is based on a 4.00% yield, this can of course be higher or lower, depending on interest rates.
Currently, tenants are not beeing charged for parking spaces, but upon renewal of rental contracts (when somebody vacates an apartment) it will be possible to charge a fee for parking space, something that should generate significant income in the future, as Copenhagen City is increasingly cancelling parking space, and as the number of cars is expected to rise sharply over the next 10 years.
Each of the tenants have access to a very large storage room free of charge. In future tenant agreements, it should be possible to charge for storage space, and/or, this storage space can be let out to persons not residing in the building. Price for storage space is app. 400 DKK pr m2.
Other information:
Parking spaces: 30
Storage rooms: 18
Energy class: A
Contractors:
Foundation Work: Tscherning A/S
Concrete: Gandrup Elementfabrik A/S
Plumbing: Kentho VVS
Electric: City El-Anlæg
Ventilation: Dantherm
Windows: Krone Vinduer
Bricks: Petersen Tegl D71
Bathrooms: Modulbad
Balconys: Søgård Stål
Engineer: Allan Almbjerg, Horsens
Architect: Jesper Martin, NB4.dk
Roof: Hetag
Rooftop windows: Velux