HusCompagniet and Velkomn enter into contract for 153 semi-detached houses
Investor news
HusCompagniet has entered into a turn-key contract with property developer and operator of rental housing Velkomn for the construction of 153 DGNB gold-certified single and double storey semi-detached houses in Haslev in Faxe Municipality on Southern Zealand.
Subject to issuance of building permit, the project is scheduled to commence in Autumn 2024 with handover in mid-2026. The contract is expected to generate total revenue at a level of approximately DKK 175 million over the construction period with the majority of revenue being recognized in 2025. The order entry will be recognized upon issuance of building permit.
Velkomn is primarily owned by UK property developer Matter Real Estate and has an ambition of building a large-scale portfolio of affordable, spacious and energy efficient semi-detached houses in Denmark. The agreement with Velkomn underlines HusCompagniet’s commitment to form close partnerships with professional investors based on aligned interests driving long-term collaboration, growth and mutual value creation.
“We are thrilled to enter this collaboration with Velkomn and look forward to building a strong partnership leveraging our experience and expertise in support of their ambition to establish a strong position in the Danish semi-detached housing market. The agreement with Velkomn is another important step towards becoming a key player in in the professional semi-detached market,” says Martin Ravn-Nielsen, Group CEO of HusCompagniet.
Wooden frames and roof cassettes for the houses will be manufactured at HusCompagniet’s production facilities, supporting a gold level certification of the project according to the DGNB standard.
The project contributes positively to HusCompagniet’s B2B orderbook, compensating for a decision by ALFA Development at end of Q2 to withdraw from a turn-key contract entered into with HusCompagniet in April 2024 for the construction of 43 semi-detached houses in a new residential area in Nivå subject to ALFA Development gaining access to the land plot and obtaining a building permit as well as other customary conditions. ALFA Development has successfully acquired the land plot, and the cooperation between the parties as well as the process for obtaining a building permit progressed as planned.
The project with Velkomn and the withdrawal by ALFA Development do not impact HusCompagniet’s 2024 outlook, which is unchanged with revenue expected at DKK 2,300-2,600 million, EBITDA of DKK 80-130 million, and EBIT of DKK 30-80 million.
For additional information, please contact:
Martin Ravn-Nielsen, Group CEO, +45 51 15 65 16
About HusCompagniet
HusCompagniet is a leading provider of single-family detached houses in Denmark and builds semi-detached houses for private consumers and professional investors. The activities in the semi-detached segment are supported by HusCompagniet Production offering prefabricated wood-framed houses. HusCompagniet also has a presence in Sweden where the Group produces prefabricated wood-framed detached houses through its VårgårdaHus brand.
The Group operates an asset-light and flexible delivery model with on-site building, primarily on customer-owned land. The construction process is outsourced to subcontractors, enabling a flexible cost base.
HusCompagniet has showrooms and showhouses in Denmark and Sweden supplemented by digital sales through the online platform “HusOnline”. HusCompagniet currently has around 400 employees dedicated to maintaining the Group’s industry-leading customer satisfaction level and co-creating the homes of tomorrow – today.