Scandinavian Property Magazine by Estate MEDIA
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#1 2020 CONSTRUCTION, PROPERTY AND INVESTMENT IN THE COPENHAGEN REGION Scandinavian Property Magazine BY estate MEDIA INVESTMENT OPPORTUNITIES DEVELOPMENT Sebastian’sSebastian’s all all aboutabout sustainable sustainable growthgrowth (especially(especially when whenit comes it comes to residentialto residential investment) investment) As managerAs manager of our residential of our residential funds, and funds, one and of overone of over 50 PATRIZIA50 PATRIZIA fund managers, fund managers, Sebastian Sebastian Dietert Dietertis is fully committedfully committed when it whencomes it tocomes finding to attractivefinding attractive residentialresidential investments investments – aiming – toaiming secure to long-termsecure long-term returns returnsthat continue that continue to grow. to grow. We alreadyWe havealready over have €10bn over in €10bn residential in residential assets under assets under management.management. Find out Find more out at morepatrizia.ag/growth at patrizia.ag/growth 21004642_PATRIZIA_Living_Cities_EN_Garden_DPS_460x290mm.indd21004642_PATRIZIA_Living_Cities_EN_Garden_DPS_460x290mm.indd PgAll Pages PgAll Pages 18/02/2020 16:4218/02/2020 16:42 RESSOURCERÆKKERNE ADDRESS Robert Jakobsenvej, 2300 Copenhagen S Area 9,150 m2 Homes 92 units ARCHITECT Lendager Group TERRASSEHUSENE HOMES ADDRESS Carl Nielsens Kvarter, 5000 Odense C Area 5,130 m2 Homes 32 units ARCHITECT BUILT WITH Adept PASSION AND STRANDHAVERNE ADDRESS Amager Strandvej, 2300 Copenhagen S CARE. Area 28,588 m2 Homes 185 units ARCHITECT Juul Frost Arkitekter HAVNEFRONTEN ADDRESS Jens Hjernøes Vej, 8700 Horsens Area 12,493 m2 BUILT FOR PEOPLE. Homes 87 CREATED WITH CARE. ARCHITECT Ginnerup Arkitekter aggruppen.dk LATEST EDITIONS NOVEMBER 2019 DECEMBER 2019 THE LEADING DANISH PROPERTY MAGAZINE Reach the Danish property industry with Estate Magazine, the market leading gateway to a unique audience. Your presence in Estate Magazine is the fastest and cheapest way to the decisionmakers in the Danish Property business. With more than ten years of trustworthy news and a highly respected editorial reputation, your journey into the Danish market starts here. Contact Michael Mortensen Direct: +45 28 34 03 19 Email: [email protected] JANUARY 2020 FEBRUARY 2020 estate MEDIA www.estatemedia.dk Copenhagen is hot PUBLISHER ver the past 10 years, Denmark and So come and learn what all the hype is about. Estate Media Nordic ApS Nørre Farimagsgade 11 st.tv. especially its capital, Copenhagen, Invest in Copenhagen or place your next 1364 København K. has become a popular target for company office in the Danish capital. Livability +45 29 16 05 36 O property investment. Economic and political is high, restaurants are world famous, archi- www.estatemedia.dk [email protected] stability help Denmark attract European and tects and consultants have a world-wide foreign pension funds, investment funds and reputation for Nordic design. What’s not to CEO private investors. like? Lars Bernt [email protected] +45 52 17 06 44 But there are still a lot of people on the See you in Copenhagen and prepare by sidelines trying to get a clear view of the reading Scandinavian Property Magazine’s ADVERTISING Michael Mortensen situation and make contact with some of the independent coverage of the most interesting [email protected] main players who can lead them to the best agendas in the property industry. +45 28 34 03 19 properties. Of course, it’s not always easy, but EDITORIAL the immense international interest has made Estate Media is the focal point of the Danish Kamilla Sevel Danish consultants very good at understanding property industry, so if you want to be in touch Editor-in-chief foreign investors’ needs. with the industry, you are welcome to contact Tel: +45 42 76 00 20 Mail: [email protected] us. Several new, central and experienced players in MAXIMISE THE VALUE OF YOUR REAL ESTATE LAYOUT AND DESIGN today’s market are now helping international Enjoy your reading! Jakob Dybdal Boni investors identify the right assets, drive asset Kamilla Sevel PRINT management and do the administrative work FOTO: Stibo A/S until the portfolio is big enough for it to make ISSN nr. 1904-2434 GACHAU WILFRED sense for them to open an office in Denmark. For over 30 years, IWG has been delivering real estate solutions for businesses in every country, city, town, village and transport hub worldwide. Scandinavian Property Magazine is the official magazine of the Danish stand at MIPIM. The We enable landlords to maximise the value of real estate through a choice of magazine offers an overview of the Danish workspace brands which suit every location, customer type and property. market and insight into a few brand new development areas which may be of interest to first movers. Choose our proven business model and add value for your tenants with new facilities and services whilst adapting your property to the new world of work. The magazine also features a business direc- FRONT PAGE tory with listings of all the leading Danish Copenhagen players so you can quickly and easily find the Photo: Febiyan on Unsplash right contact. Meet the team iwgplc.com/mipim 8 Scandinavian Property Magazine | 2020 Content 24 We are in acquisition mode. 8 Copenhagen is hot 18 12 Get the overview: Map of the Nordics 14 Danish property market: Residential is still the most sought after 18 Nordic investment firm aims to enrich people's lives with their buildings 24 Investment in Jutland on the up and up We look forward to an inspiring MIPIM. 28 More and more investors heading 40 for the suburbs Our focus this year is residential and commercial acquisitions in the Greater Copenhagen Area. 32 South Korean investors gaining ground in the Nordics 34 Denmark's secord largest city is growing / OLE MALLING & HAVN BY PHOTO: up and out 38 Seven transactions passed the €135 million mark 40 Significant development areas in Copenhagen PHOTO: MARIE HALD / METROSELSKABET PHOTO: 44 Copenhagen is the 4th smartest city in the world 28 48 Investors go for prime in Copenhagen 50 Property for a good cause – and worth DKK 35 m 57 Business Guide 14 10 Scandinavian Property Magazine | 2020 WELCOME TO GREATER DENMARK AALBORG COPENHAGEN Helsingør Helsingborg Hillerød ILLUSTRATION: PAKHUSENE COPENHAGEN DENMARK Nordhavn Lund AARHUS CBD Roskilde Ørestad CBD Hyllie MALMÖ Køge SCANDINAVIA THE NORTH OF EUROPE COPENHAGEN PHOTO: COLOURBOX ODENSE ILLUSTRATION: LENDAGER GROUP LENDAGER ILLUSTRATION: 12 Scandinavian Property Magazine | 2020 Scandinavian Property Magazine | 2020 13 PHOTO: CHRISTENSEN & CO ARKITEKTER OG URBAN CREATORS, G - The spread between the rents in CBD and the E KRAGH & BERGLUND, URBAN POWER OG MOE O rest of Copenhagen increases over the next ten H E K years, says Nicholas Thurø. K I R E D E R F : O T O H P Danish property market: Norwegian KLP Ejendomme bought Residential is still Several new areas accountant firm are being developed Deloitte's domicile for in Copenhagen almost €185 million the most sought after - here Stejlepladsen. in December 2019. Historically, the Danish real estate market has been driven by the three segments: retail, office and residential By Kamilla Sevel he residential segment, which has square metres in order to live in Copenhagen, demand to remain strong, and presumably been the largest segment since 2015, says Managing Partner Nicholas Thurø, RED result in increasing rents. This, however, does T is still expected to remain the most Cushman Wakefield. not apply to offices in secondary areas such sought after in 2020 in Denmark. Even if the as the outskirts of Copenhagen around Ring tempo has slowed and the total volume has MORE THAN INFLATION 3, where the occupier demand is significantly decreased by around 26 per cent in 2019, one of The rental level in Denmark’s largest cities weaker, says Nicholas Thurø. Denmarks most experienced property broker and the nearby suburban municipalities firms, RED Cushman Wakefield, expects that have increased more than inflation-adjusted The total transaction volume for investment the residential segment will once again be the wages in the last few years. Therefore, there properties in Denmark amounted to €8 bn in largest in 2020. is a mismatch in pricing between supply and 2019 and was thus reduced by approx. demand, as there is a limit to what a tenant can 21 per cent compared to 2018, where property With turn-key projects, investors will be focu- or will pay in rent. What people in an area are transactions reached €10 bn. Volumes have sing on the prerequisites for the business case, willing to pay in rent is called the ‘rent burden’. decreased the most in secondary cities like and in particular, on the assumed rental levels Investors and developers are seeing that family Aarhus and Aalborg. and operating expenses. The investment market homes with a monthly rent of €2000+ utilities will be characterised by investors focusing on are difficult to let. We are experiencing a flat INVESTORS' PERCEPTION operating returns rather than on divestments. development in residential rental levels in REMAINS POSITIVE Both Copenhagen and the 12-15 other largest Copenhagen, Aalborg and Odense, while slight Investors continue to perceive the Danish real cities in Denmark will be focus areas. increases are expected in the nearby suburban estate market as attractive, and the decline in municipalities. investment activity is not due to a lack of - We continue to expect a strong demand for capital, but rather to a lack of supply within rented housing in Copenhagen in 2020. In The office market is also experiencing high the primary segments - office and residential, several places, rental levels have reached their interest. as well as, an in the eyes of the investors, too maximum, even if there are small “pockets” high pricing on the retail properties. This where increasing rental levels can still be - We are still seeing strong occupier demand causes capital to accumulate and investors seen. The prospect of it being permitted to in central Copenhagen, and currently vacancy to hold back, which is considered to be one build homes down to 50 sq m opens up the rates are therefore also very low.