Copenhagen, Denmark: One Copenhagen hotel purchase has quickly become two. CapMan Real Estate has acquired Hotel Scandic Webers through CapMan Nordic Real Estate IV, in its 50/50 joint venture with Danish pension company AP Pension. The deal follows the joint venture's recent purchase of Hotel Crowne Plaza Copenhagen and builds a Copenhagen hotel portfolio with two distinct positions in the same market.
The seller is Jeudan, Denmark's largest listed real estate and services company. The 3- to 4-star hotel has around 7,400 m² and 152 rooms, in central Copenhagen close to Copenhagen Central Station, Tivoli Gardens and the Meatpacking District. The joint venture plans a comprehensive refurbishment programme with the operator Scandic to strengthen the hotel's position in the city-centre market and improve the guest experience.
"With Hotel Scandic Webers, we are adding a high-quality city-centre hotel that complements our recent acquisition of Hotel Crowne Plaza Copenhagen. Together, the two properties provide exposure to different parts of Copenhagen's hotel market while creating attractive opportunities for active asset management and future value creation. We look forward to working with Scandic to realise the hotel's full potential," said Mads Diderichsen, Investment Director at CapMan Real Estate.
Mikkel Lieberkind, Real Estate Investment Director at AP Pension, added: "The acquisition of Hotel Scandic Webers is another important step in building a high-quality hotel portfolio in Copenhagen. The property's prime city-centre location complements our recent investment in Crowne Plaza Copenhagen and further strengthens our exposure to a market supported by strong tourism, business travel and limited new supply. Together with CapMan and Scandic, we see attractive opportunities to enhance the property and create long-term value for our customers."
For investors and developers, the detail that has not been addressed is the pending regulatory step. Final closing remains subject to EU Commission approval of the merger control process between AP Pension and CapMan, so the hotel purchase is tied to a wider relationship between the two parties. Neither the price nor the reason for that review is disclosed. Two hotels in a market with limited new supply, held by one pension-backed venture, show a pension investor building scale through an operator-led refurbishment strategy rather than a single trade. "The sale is a good example of how a strong process, and a long-term perspective can go hand in hand. We continuously evaluate Jeudan's properties against our strategic focus and commercial opportunities. In this case, a good solution has been found for both parties, providing a solid foundation for the property's continued development," said Per W. Hallgren, CEO of Jeudan.
The joint venture was advised by Poul Schmith, Sweco, PwC, Bruun & Hjejle, Accura, EKJ and Colliers, while Cushman & Wakefield | RED brokered the sale for Jeudan. CapMan is a Nordic private asset manager with €7.7bn in assets under management, listed on Nasdaq Helsinki since 2001. AP Pension, founded in 1919 and 100% customer-owned, manages around €24.8bn in assets. Jeudan owns more than 200 properties, mainly classic and historic buildings in Copenhagen and Frederiksberg.
People mentioned
- Mads Diderichsen, Investment Director, CapMan Real Estate
- Mikkel Lieberkind, Real Estate Investment Director, AP Pension
- Per W. Hallgren, CEO, Jeudan
Companies mentioned
- CapMan Real Estate, Nordic private asset manager and joint venture partner acquiring the hotel
- AP Pension, Danish pension company and 50/50 joint venture partner
- Jeudan, Danish listed real estate company and seller of the hotel
- Scandic, hotel operator and refurbishment partner
- Sweco, adviser to the joint venture
- PwC, adviser to the joint venture
- Colliers, adviser to the joint venture
- Cushman & Wakefield | RED, broker for Jeudan
- Poul Schmith, adviser to the joint venture
- Bruun & Hjejle, adviser to the joint venture
- Accura, adviser to the joint venture
- EKJ, adviser to the joint venture
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