Hines Enters Denmark with $126M Deal
- Jan 20, 2017
Copenhagen, Denmark—Hines and Universal-Investment have acquired five prime high-street retail assets with associated office and residential components in central Copenhagen for $126 million from Avignon Capital, on behalf of its Bayerische Versorgungskammer fund.
The transaction marks Hines’ first entry into Denmark. This deal is the seventh transaction by Hines for the $1.4 billion investment BVK mandate, which is targeting prime high-street retail assets across Europe.
“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,” Peter Epping, managing director, investment management for Hines Europe and fund manager for the BVK account, said in a prepared release. “We are excited by the opportunity to deliver value-add creation through the redevelopment of parts of the portfolio.”
The portfolio consists of five prime retail assets combining approximately 126,000 square feet in the heart of the city’s retail core. Three buildings are located on Købmagergade, a prime pedestrian shopping street and home to many of the city’s luxury brands. The remaining two are situated in the historic retail precinct, the Strøget.
Combined, the five properties are more than 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.
“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,” Lars Huber, Hines Europe’s CEO, said in prepared remarks.
Capital Investment will continue its role as property manager for the portfolio on behalf of Hines. Cushman & Wakefield and Red Property Advisors advised on the acquisition.
Image courtesy of Hines