Central Denmark Region sells off the former Aarhus Municipal Hospital
A property deal of historic proportions was concluded in Aarhus this week. Central Denmark Region has sold the hospital buildings on Nørrebrogade – the former Aarhus Municipal Hospital – to the Aarhus University research foundation’s property company Forskningsfondens Ejendomsselskab (FEAS) for DKK 807.50 million. In cooperation with Aarhus University, FEAS will develop a new campus area on the 110,000 sq. m property.
The sale is an excellent start on a new chapter for Central Denmark Region, which administers the public healthcare system in central Jutland. The region is currently constructing a new University Hospital in Skejby outside Aarhus which is expected to be completed in 2019:
“Central Denmark region got the right price. Exactly one year ago, Central Denmark Region sold the former Aarhus county hospital on Tage Hansens Gade to the City of Aarhus for DKK 400 million and a large plot in Skejby. And now it’s time for the former city hospital on Nørrebrogade. This new sale brings us a giant step closer to being able to finance the region’s considerable share of the new hospital construction project budget,” states Bent Hansen, chairman of the regional council.
FEAS, the purchaser of the property, is a subsidiary of the Aarhus University Research Foundation (AUFF), which has supported the university’s gradual development of its campus in Aarhus since the company’s establishment in 1987. Today, FEAS owns approximately 115,000 sq m at different locations in Aarhus, including Nobel Park and numerous buildings in the Katrinebjerg district. Now the company is adding another 110,000 sq m to its portfolio.
“We’ve had a really good negotiation process with the region, and are quite satisfied with the final contract of sale. FEAS was created in order to support the development of Aarhus University’s activities, and this sale will guarantee a fantastic framework for that development,” says Bent Müller, chair of FEAS.
Consolidation and development
The purchase of the property will give Aarhus University new opportunities to consolidate and strengthen a variety of its research activities, both through expanding existing activities and through relocating some of the activities that are currently spread over various locations. The university also sees great potential for the development of researcher and student housing as well as expanded partnerships with new and established businesses.
“By taking over this property, Aarhus University is gaining a unique framework for the expansion and consolidation of its strong position as an urban campus. In the long term, this will lead to opportunities to continue the development of a research and teaching environment of a high international standard,” states Rector Brian Bech Nielsen.
Central Denmark Region will continue to lease parts of the property for a minimum of four and a half years.
In line with the municipal development plan
The City of Aarhus has expressed wholehearted support for the sale, which is completely in line with the municipal development plan. Mayor Jacob Bundsgaard is convinced that the new plans for the area will have a decisive influence on the city’s development. And his expectations are high:
“Aarhus University is a significant institution in Aarhus and an important part of the major development the city is undergoing at present. The battle to attract knowledge and talent is fierce, and the new opportunities the sale represents for the university will strengthen the city’s position as one of Scandinavia’s leading education and research cities. The sale of the municipal hospital is thus absolutely crucial to the city’s growth and development.”
Aarhus and FEAS will now proceed to negotiate the conditions for development, the moving process, rent payments etc. When the lease agreement is finalised, it must be approved by the university’s board as well as the Finance Committee of the Danish Parliament.
According to the most recent schedule for the construction of the new hospital in Skejby, Central Denmark Region expects to move the last activities out of the buildings on Nørrebrogade in May 2019, at which time the property will be transferred to FEAS.
The contract between the region and FEAS must be approved at the next meeting of the regional council in January 2016.
Facts about the property
- The total floor area including tunnels and basements is approximately 143,000 sq m.
- The total usable floor area minus tunnels and basements is expected to be at least 110,000 sq m in future.
- The total site area is 99,000 sq m.
- The property consists of three plots: Nørrebrogade 44, Peter Sabroes Gade 10-12 and Nørre Boulevard 5.
- The hospital opened in 1893.
- The oldest buildings were designed by the architect Thomas Arboe, and later buildings were designed by C.F. Møller and Kay Fisker, among others.
- Aarhus University will lease the buildings from Forskningsfondens Ejendomsselskab A/S (FEAS).
Contact information
- Bent Hansen, chairman of the regional council: Tel. +45 4031 3707
- Brian Bech Nielsen, rector of Aarhus University: Tel. +45 2338 2349 or contact Anders Correll, head of press affairs, +45 2899 2235
- Jørgen Lang, managing director of FEAS: Tel. +45 8715 3361
- Jacob Bundsgaard, mayor of Aarhus: Contact Lars Petersen, press consultant, tel. +45 4185 4001