08 November 2018
Union Investment Real Estate completes first Danish Transaction
German-based Union Investment Real Estate has made its first Danish real estate investment on Frederiksborggade 5 on Strøget in Copenhagen, Denmark.
The property covers 2,800 sqm on one of the most sought after and busy locations in Denmark. Union Investment acquired the long term let asset for its institutional open-ended fund UniInstitutional European Real Estate.
Roman Müller, Investment Manager, from Union Investments comments: “We are delighted to conclude our first investment in the Danish market with such a strongly profiled core asset with great anchor tenants on long lease agreements.”
The transaction is the culmination of a business plan developed by Aberdeen Standard Investments who also led the sales process on behalf of the seller. The plan involved a five year development process undertaken by Aberdeen Standard Investments which has delivered a high specification building let to quality tenants with a strong credit rating on long term leases.
Aberdeen Standard Investments Fund Manager Martin Helweg-Ovesen commented: “This was previously a disjointed building that was under-utilised. We have extended and modernised the property to include valuable retail space. The result is a very high specification retail space that suits the needs of the first-class international retail tenants, such as Vapiano and youSee, which we have secured for the property.”
Besides a Vapiano restaurant and a YouSee retail store, the property houses the Danish serviced office operator Ordnung and six newly refurbished residential apartments.
Aberdeen Standard Investments Fund Manager Jacob Kruse Rasmussen, who delivered the business plan alongside Martin Helweg-Ovesen, adds: “Frederiksborggade 5 is one of a number of highly successful Copenhagen developments completed by Aberdeen Standard Investments on behalf of our international clients in recent years. But this investment stands out because of the challenges that the project presented. We are very satisfied with the resulting core property profile with its appeal to a broad range of international investors and with the financial results created for our client.”
The parties agreed to not disclose the financial details of the transaction. The seller has been advised by Savills/Nybolig Erhverv and Bruun & Hjejle.Union Investment was advised by CBRE, Fokus Asset Management, Ramboll and Kromann Reumert.
For Union Investment Institutional Property GmbH