Estimate for renovation of Havnegade 5 is increasing

According to a new estimate from Danmarks Nationalbank’s consultants, the total renovation of the Bank’s building in Havnegade in Copenhagen, including removal of asbestos and PCBs, fireproofing, replacement of marble and glass on the façade as well as of technical installations, will run into around kr. 2.8 billion.

At the same time, the date for Danmarks Nationalbank’s relocation back to its own building from its temporary address at Langelinie Allé will be postponed by one year from 2028 to 2029.

In 2022, the estimate was kr. 1.9 billion, but the updated estimate of the construction costs from the Bank’s consultants is now almost kr. 2.8 billion. The reason for the increase is that it has now been established how the various renovation tasks are to be performed. In addition, there have been significant price increases for construction projects in recent years, which contributes to the higher estimate.

“Danmarks Nationalbank owns the building at Havnegade 5. The building is listed, worn and built with materials containing environmentally hazardous substances such as PCB and asbestos. As an owner and employer, we are obliged to renovate it so that it can again be used as a workplace,” says Chief Operating Officer Lone Mortensen.

Since September 2021, Totalrådgivergruppen EKJ and Rørbæk Møller Arkitekter have worked closely with Danmarks Nationalbank to plan and design the restoration and renovation project. The scope of the project has been known since 2022, but the expected costs have increased by kr. 850 million in connection with the project planning and design, which included pilot projects and analysis of the existing installations and conditions. The general price and wage increases in the construction industry have also contributed to the increase.

Danmarks Nationalbank’s consultants was tasked with determining how to restore and renovate the solutions created by architect Arne Jacobsen in his pioneering building project and to make them more durable than they were 45 years ago when the building was completed.
Danmarks Nationalbank’s headquarters was listed in 2009, and was Denmark’s youngest listed building at the time.

“The listing makes the project more complex, but even if Havnegade 5 had not been a listed building, it needs a thorough renovation, and, just like all other building owners, we have a responsibility to ensure that the building is in a sound condition,” says Lone Mortensen.

Many of the solutions have worked well over the years, but a large part of the building is now ripe for a thorough renovation to ensure that it is functional. For example, the biggest single expense item is the replacement of worn-out technical installations, and parts of the building contain substances such as asbestos and PCBs, which must be removed before the building can be used as a workplace again. In addition, the building must be fireproofed to meet current safety requirements.

Procurement procedures will be conducted for the three sub-projects of the building project on an ongoing basis towards 2026, and only then will the final price be more or less fixed.

The construction estimate of just under kr. 2.8 billion is excl. VAT. According to standards for developers, risk pools and pools for contingencies have been allocated in the overall price estimate.

Reasons for the increased estimate:

• Far more costly PCB removal than first assumed;
• More complicated dismantling and reassembly of building parts;
• Replacement of installations under limited space conditions;
• More technical installations need to be replaced;
• Pilot project shows greater damage to concrete on exterior façades;
• Need for external storage facility for dismantled building parts;
• Higher expected price of establishment of land anchors;
• General price and wage increases in construction industry.