DENMARK – Danish statutory pension fund ATP has bought an 84,000sqm office building in Copenhagen for DKK1.9bn (€255m), in a deal including a 15-year lease to state energy company DONG Energy.
The DKK600bn supplementary labour market pension fund said the purchase was part of its strategy to focus on large, modern properties let out on long leases to strong tenants.
Michael Nielsen, chief executive of ATP Real Estate, said: “We are very satisfied with this investment, which is perfectly in line with our strategy for real estate investments.
“The long lease with DONG, the high technical quality of the property as well as the prime location are all very important factors.”
ATP said its purchase earlier this year of a 45% share in the new UN City development in Copenhagen’s harbour district was part of the same strategy.
The building it is now buying in Gentofte in Copenhagen is DONG Energy’s headquarters.
The Danish government has a majority stake in the energy company.
DONG Energy said the sale and leaseback agreement deal with ATP was part of its efforts to divest non-core assets to raise DKK10bn in 2013-14, and reduce its net interest-bearing debt.
Marianne Wiinholt, the firm’s CFO, said: “Ownership of office premises isn't a core asset for us."