Hines and Universal-Investment acquire five prime high-street retail assets in Copenhagen
Hines, the international real estate firm, and German investment company Universal-Investment, have successfully completed the acquisition of five prime high-street retail assets with associated office and residential components located on the Strøget in central Copenhagen on behalf of the Bayerische Versorgungskammer (BVK) €1.3 billion separate account. The purchase represents the first Danish acquisition for the BVK mandate and has been purchased from Avignon Capital for €119 million.
The transaction marks Hines’ entry into Denmark, growing the firm’s already strong presence in Europe where it has a total of €10.8 billion AUM in most major countries and cities across the continent.
The Copenhagen portfolio comprises five prime retail assets combining 11,700 square meters in the heart of the city’s retail core. Three buildings in the portfolio are located on Købmagergade, a prime pedestrian shopping street and home to many of the city’s luxury brands. The remaining two assets are located in the historic retail precinct, the Strøget, one of the world’s longest pedestrian shopping streets. The five assets in total are over 80 percent occupied, with a mix of international and domestic retail tenants, including Superdry, Benetton, Matas, Synoptik and Sand. The office component is leased to the Danish Government.
BVK is Germany’s largest pension scheme group with approximately €66 billion assets under management. This deal is the seventh transaction by Hines for the €1.3 billion investment mandate which is targeting prime high-street retail assets across Europe.
Peter Epping, managing director – Investment Management for Hines Europe and fund manager for the BVK account, said: “Located in Central Copenhagen in strong retail destinations and leased to high profile international and domestic retailers, this latest purchase will complement the BVK holdings across Europe. We are excited by the opportunity to deliver value-add creation through the redevelopment of parts of the portfolio.”
Lars Huber, CEO of Hines Europe, added, “Since winning the BVK mandate this time last year, Hines has successfully acquired a number of high quality retail assets in prime locations on high streets across European territories, including France, Milan, the United Kingdom and Norway. We are excited to now enter the Danish market and the teams remain focused on making this strategy a continued success.”
James Robson, managing director of Hines Europe, said: “With an increasing population, growing catchment area and relatively low saturation of retail brands, Copenhagen offers an attractive investment proposition. Through active asset management and redevelopment, we see the opportunity to drive rental growth and bring new operators to the area.”
Alexander Tannenbaum, Managing Director of Universal-Investment, adds, “German institutional investors favor steady returns. Therefore, the Nordic countries offer interesting opportunities as their economies show a stable and positive development.”
Capital Investment will continue to act as property manager for the portfolio on behalf of Hines. Cushman and Wakefield and Red Property Advisors advised on the acquisition.