German fund manager Union Investment Real Estate has made its first Danish real estate investment with the purchase of a mixed-use asset in Copenhagen.
Frederiksborggade 5 covers 2,800 m2 on one of the most sought after and busiest locations in Denmark. Union Investment acquired the long-let asset for its institutional open-ended fund UniInstitutional European Real Estate for an undisclosed amount.
Roman Müller, investment manager at Union Investments commented: '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 which also led the sale 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's 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 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.
The seller was advised by Savills/Nybolig Erhverv and Bruun & Hjejle. Union Investment was advised by CBRE, Fokus Asset Management, Ramboll and Kromann Reumert.