(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
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.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 192 cities in 20 countries. Hines has $93.2 billion of assets under management, including $47.9 billion for which Hines provides fiduciary investment management services, and $45.3 billion for which Hines provides third-party property-level services. The firm has 105 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,180 properties, totaling over 379 million square feet. The firm’s current property and asset management portfolio includes 483 properties, representing over 199 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.
About Bayerische Versorgungskammer
Bayerische Versorgungskammer is the competence and service center for occupational and communal pension schemes and Germany´s largest pension scheme group under public law. As a public authority of the Bavarian Ministry of the Interior, it is the joint executive body of twelve liberal professions´ and communal pension schemes. Bayerische Versorgungskammer covers about 2.1 million insured persons in total, with contributions of € 4.2 billion and € 3 billion pension payments annually. It currently has € 66 billion assets under management and 1,200 employees. Visit www.versorgungskammer.de for more information.
Universal-Investment is the largest independent investment company in German-spoken Europe with fund assets in excess of about €290 billion under administration, over 1,000 funds and investment mandates and a workforce of around 650. The focus lies on the efficient and transparent administration of funds, securities, real estate and alternative asset classes. The company is headquartered in Frankfurt/Main and has subsidiaries and holdings in Luxemburg and Austria. As pioneer of the investment industry Universal-Investment is now market leader in the areas of master-KVG and private label funds. Owing to the strong growth since starting the real estate business in 2011, Universal-Investment established itself among the Top 5 companies for institutional open-ended real estate funds in Germany. Members of the management board are Oliver Harth (deputy spokesman), Markus Neubauer, Stefan Rockel, Alexander Tannenbaum and Bernd Vorbeck (spokesman of the management board). (As per 31 December 2016) Visit www.universal-investment.com for more information.