Core office and retail space in the new Carlsberg City district
A few days ago, the Luxembourg asset and investment specialist REInvest Asset Management S.A. acquired a portfolio of core office and retail space in Copenhagen’s Carlsberg City district for the pan-European investing fund DEREIF SICAV FIS. The principal investor of the Luxembourg-based real estate special fund is a major German insurance company. NREIM acted as local consultant to the buyer. The level of the investment volume was not disclosed.
The portfolio consisting of “Theodora House”, “Mineral Water House” and “Mineral Water Factory” offers almost 10,000 square metres of rental space. These comprise 90 per cent office and 10 per cent retail space. Tenancy agreements have already been drawn up for almost 50 per cent of the space. AIG, one of the world’s leading insurance companies, and the Danish company Domutech have already moved into the historic premises. The global Estée Lauder Group will move its Nordic headquarters to “Mineral Water House” at the end of May 2021. The properties were completed in autumn 2020.
The Carlsberg City district is located in the heart of Copenhagen. The story of the city’s newest district began in 2006 with the Carlsberg Brewery’s decision to move its operations from the Danish capital to Jutland. The hitherto closed industrial area was now to be made publicly accessible. The vision was to create a quarter that blends listed buildings with modern architecture. The new district should be attractive for businesses and residents alike. Carlsberg Byen P/S has planned to create flats (approx. 50 per cent), commercial space (approx. 35 per cent) and areas for culture, sports and public facilities (15 per cent) on the usable area exceeding 600,000 square metres in total. Carlsberg City is scheduled to be 85 per cent complete in 2022, with the remainder following by 2024.
The capital city Copenhagen has over 630,000 inhabitants and is the most populous city in Denmark. Roughly 1.9 million people live in the greater Copenhagen area. Carlsberg City is located in the centre of Copenhagen between Frederiksberg, Valby and the fashionable district of Vesterbro, only two kilometres from City Hall Square and 12 kilometres from Copenhagen Airport. The district is easy to reach both by car and by public transport. A total of about 3,000 parking spaces are to be built, 95 per cent of which in underground garages.
“Copenhagen is considered an excellent location for business and an ideal place to live and work. Demand for modern office space in prime areas is one of the biggest drivers of rental growth in the city, as the place where companies decide to locate has become an increasingly important factor. Good public transport connections have a major impact on value creation and are gaining in significance as a factor in tenants’ choice of office location. This is exactly what this portfolio offers,” says Martin Nolting, Executive Director Business Development at REInvest Asset Management S.A.