Germany’s Bayerische Versorgungskammer (BVK) has completed its purchase of a Danish retail property portfolio through a separate-account mandate with Hines.
Hines and German investment company Universal-Investment bought five prime high-street assets in Copenhagen for BVK’s €1.3bn separate account.
The €119m deal is Hines’s first in the Danish market and seventh for the BVK mandate.
The portfolio, on the Strøget and Købmagergade in central Copenhagen, will be managed by Capital Investment.
Avignon Capital sold the 11,700sqm portfolio, which also includes some office space and is 80% let.
The firm last year told IPE Real Estate a booming tourism industry and high domestic spending power were key reasons for the firm’s investments in Copenhagen in 2012, when the market was largely void of international investors.
James Robson, managing director at Hines Europe, said: “With an increasing population, growing catchment area and relatively low saturation of retail brands, Copenhagen offers an attractive investment proposition.
“Through active asset management and redevelopment, we see the opportunity to drive rental growth and bring new operators to the area.”
BVK mandated Hines to invest in European high-street retail property in January last year, with a focus on core-plus, value-add and redevelopment opportunities across 20 major European markets.