The two Danish pension funds, ATP and Danica, have entered into a joint venture agreement that will include 16 leading Danish shopping centres with a total value of €1.9bn. It is the highest value real estate transaction in Denmark to date.
After having enjoyed exclusive ownership of these centres for a number of years, Danica has now decided to sell off 50% of its share to ATP Real Estate.
The portfolio consists of 16 centres across Denmark, the majority located in Greater Copenhagen, and includes some of the largest and most prestigiously located centres in the country. The centres comprise a total area of around 400,000 m² with approx. 1,100 tenants. Over 60 million shoppers visit the centres each year.
ATP Real Estate´s CEO, Michael Nielsen, says: “We are very pleased with this significant addition to our real estate portfolio. The investment is in keeping with our focus on investments that have a healthy risk diversification and provide long-term stable returns. Together, ATP Real Estate and Danica will work to enhance the centres´ position on the Danish market for the benefit of both visitors and retailers alike. In future, we plan to create shopping centres that will stage events and offer a total “leisure experience”, and where shoppers can, for example, receive special offers, tailored-made for them individually, directly via their phones”.
Anders Svennesen, CIO at Danica adds: “We are pleased to join forces with ATP in leading Denmark’s best shopping centres into the future. We are confident that, together, we can develop the centres so that not only will they live up to market expectations, but they will also provide customers with a positive shopping experience, and will be a good investment for our pension fund members”.
The transaction is dependent upon receiving approval from the Danish Competition and Consumer Authority.
