US developer-investor Hines has completed the acquisition of Købmagergade 44-46/50, a five-storey mixed-use asset in central Copenhagen, on behalf of its Hines European Value Fund.
The asset was purchased from Freja ejendomme which is a private company owned by the Danish State. The purchase price is DKK 845 mln (€113 mln).
The buildings are partly occupied by the University of Copenhagen. They are located in the heart of Copenhagen’s retail and tourist thoroughfare, adjacent to one of Denmark’s most visited tourist attractions – The Round Tower (Ruundetaarn). The area is benefiting from a shift toward more luxury goods retailing and the recent improvements to public realm including the pedestrianisation of the Købmagergade.
Hines said that the acquisition offers a rare opportunity to acquire two adjacent historical properties and implement a comprehensive value-add redevelopment programme to create a high-quality retail, hotel and residential mixed-use asset.
'Located in Central Copenhagen, the almost vacant buildings offer a rare opportunity to redevelop a high-quality mixed-use asset that will meet the needs of both the domestic market and international tourists. The acquisition also demonstrates our commitment to the Nordic region, an area where Hines has been growing expertise and acquiring investments where we can drive value for our investors,' said James Robson, managing director Hines Europe with responsibility for the Nordic markets.
HEVF is a Euro-denominated, Luxembourg-based investment fund launched in 2017. Managed by Hines, its objective is to acquire a portfolio of core-plus and value add commercial real estate throughout Europe on behalf of an institutional investor group.
Paul White, fund manager of Hines' HEVF, added: 'We are very pleased to make our second acquisition for HEVF following our first investment in Stuttgart earlier this year.'
This is Hines' third acquisition in Copenhagen in the past 15 months following the purchase of four high-street retail properties on the Købmagergade for the Hines Pan-European Core Fund and a retail portfolio for a separate account.
James Lombard, partner, EMEA Capital Markets at Cushman & Wakefield, which acted on behalf of the vendor, said: 'The buildings offered rare value-add potential in the heart of the prime retail pitch of Copenhagen and demonstrates continued investor appetite for high street assets in one of Europe’s most liquid and dynamic high street markets. In the current ever changing retail landscape, demand for high street assets in core locations continues to be highly competitive when compared to other retail sub-sectors.'