ATP Real Estate and PensionDanmark have just acquired the historical buildings on Kongens Nytorv in Copenhagen, where the department store Magasin is located. The two investors each hold a 50 pct. share. ATP Real Estate and PensionDanmark already own the three Magasin properties in Lyngby, Odense and Aarhus respectively. Hence the acquisition of the Magasin property on Kongens Nytorv is a natural continuation of the present activities.
"We are very content with this investment, which is perfectly in line with our focus on large investments, long leases and secure returns. We are familiar with the tenant Magasin/Debenhams from our previous investments and are looking forward to continuing the positive co-operation,” says CEO Michael Nielsen, ATP Real Estate.
"The investment in the Magasin property on Kongens Nytorv is part of our strategy to invest in commercial properties on prime locations with solid tenants and long leases. The members can look forward to good returns on the investment, which is in accordance with our plan to have approx. 10 pct. of PensionDanmark’s assets allocated to real estate,” says CEO Torben Möger Pedersen, PensionDanmark.
The Magasin department store has been conducting business in this property since 1870, and originally there has been a ‘draper's shop’ but also a hotel (’Hotel du Nord’) at the location. The original building on the site dates back to 1677, but has been regularly developed and renovated, last in 1968, where the department store was extended facing Bremerholm and Magasin Torv.
The seller of the property is Solstra Investments A/S. The present main tenant, Magasin, is part of the Debenhams group, which is listed in the UK. In the fiscal year 2012/13 Debenhams had a turnover of approx. DKK 20bn and are managing, including Magasin in Denmark, 172 department stores primarily in the UK and Ireland.
ATP Real Estate will be in charge of the administration of the property as is the case for the other three Magasin properties owned by the investors.
Source: Pension Danmark