Klövern Makes EUR 99M Acquisition in Copenhagen
Denmark Klövern has acquired four office properties in Copenhagen for an underlying property value of MDKK 735 (EUR 99M).
The properties have a total lettable area of around 36,600 sq.m. and are almost fully let. Among the largest tenants are the Municipality of Copenhagen, IBM, G4S, Nestlé, Regus and Q8. The rental value amounts to DKK 41 million per year, the economic occupancy rate is 99.7 per cent and the average remaining lease contract period is around 3 years.
"These four properties, with stable cash flows and of fine technical quality, complement our portfolio in Copenhagen in a great way. In total we now have around 86,000 sq.m. of high-quality commercial space which makes a good business unit. We believe that the office market in Copenhagen will have a good development going forward", says Rutger Arnhult, CEO of Klövern.
Transfer of possession is planned to take place on 4 July 2018 and the acquisition is intended to be primarily financed with bank loans.