The property is a historical listed red building from 1883 and is also referred to as ‘Rød Lagerbygning’ (‘Red Warehouse’). It is being developed by CapMan and Revco and comprises 9,870 sq m in total. The building is currently undergoing a transformation from its original use as a warehouse and workshop through the 20th century to a modern office building while maintaining the industrial expression.
Peter Gill, Partner and Head of CapMan Real Estate Denmark, says:
"We are very satisfied with the sale of this highly attractive property on the Danish real estate market. The refurbishment is progressing well, and the building is characterised by the original rustic industrial expression combined with a modern look and functionalities in a unique combination, that captures the atmosphere of the entire area. We had a great deal of tenant interest in the building and recently signed a long-term lease with Boston Consulting Group."
The buyer is the German family-owned THI Investments. Director Florian Geistmann from THI Investments is delighted about this new asset saying:
"It all comes together with the work-live-play of the location, the quality of the asset and the tenant occupying the entire property from 2023. We look forward to the continued collaboration with CapMan and Revco."
This transaction is a forward purchase, and the construction will continue with takeover in the summer of 2023. The purchase price is confidential but close to half a billion DKK.
"We are extremely pleased to see this transaction fall into place. This property has attracted broad attention from international and national investors in the office market, having a fantastic location in Copenhagen and being a unique and interesting product," says Christian Bro Jansen, Head of Capital Markets Denmark, CBRE, who has been the Seller’s commercial advisor on the transaction.
The Seller has been advised by CBRE, Accura and EY, while the buyer has been advised by NREIM, Plesner, Deloitte and Sweco.
The transaction is the sixth exit of the CapMan Nordic Real Estate II fund. CapMan Real Estate currently manages over EUR 4.0 billion in real estate assets. The Real Estate team comprises over 60 real estate professionals in Helsinki, Stockholm, Copenhagen, Oslo and London.