The total development cost is estimated to be DKK1bn (£117m), with the balance coming from commercially backed funding.
Sports and venue specialists from Aecom company Davis Langdon worked on the strategy for developing and funding the project from its inception in early 2010. Its team, which includes IPWas sports and entertainment financial/procurement specialist, created the development process for the project and has completed outline and full business cases.
It has led the procurement process for an international operator which will lease the facility for 25 years, with AEG and Live Nation now in the final phase of tendering.
Davis Langdon said that funding strategy and procurement route developed by the team has shown that arenas can be delivered where cities once believed they might not be financially achievable. Unlike many other major arenas, the scheme does not place any future burden on the municipality to subsidise the arena during its operation.
Now that funding is confirmed the process to select a design team and finalise the operator lease will start. Construction is planned for completion in 2015 with the first events due to be held at the arena before the end of 2015. The arena will host a wide range of events including concerts, family shows and sports.
James Clark, project lead and head of Davis Langdon's business in Denmark, said: “Like many other cities, Copenhagen has tried to develop an indoor arena on several occasions, and being part of the team that will finally make this happen is truly exciting for everyone involved. With funding having been approved, we are now looking forward to implementing the rest of the strategy to deliver a world class facility for Copenhagen, one which will be run by a major international operator with no future risk of subsidy from the municipality.”
IPW managing director Nick Russell said: “The procurement approach and our team’s understanding of the marketplace have allowed this project to move to the next stage in its journey to delivery. Putting the operator at the centre of the procurement itself is an essential ingredient in the funding and design strategy. Copenhagen provides a guide to all major cities seeking arenas about what can be achieved in the current strong market conditions."