Aviva Investors has sold a mixed-use building in Denmark that it acquired from Patrizia two years ago.
In January 2020, Aviva Investors and Public Sector Pension Investment Board (PSP Investments) announced the acquisition of the 24,500sqm mixed-use retail, leisure and office asset situated in the centre of Copenhagen’s retail district. Patrizia invested €200m to buy Galleri K as a co-investment with a German scheme In September 2015.
Aviva Investors said since the acquisition in 2020, it has been able to complete approximately 10,000sqm of office and retail lettings at Galleri K, bolstering occupancy rates from just 38% to nearly 99%.
Aviva Investors said today that the sale ”secures a substantial return” on the property ahead of schedule.
George Fraser-Harding, fund Manager at Aviva Investors, said Galleri K is an example of the asset manager’s ability to create value and lock in returns for its clients through sound active management and timely disposal.
”We originally acquired Galleri K in an off-market process where the vacancy risk appeared to have been misjudged. Despite a challenging letting environment, we have been able to achieve positive leasing momentum and deliver returns well ahead of the initial underwriting.
”This has been achieved through close collaboration with Capital Investment and PSP Investments and reinforces the sentiment for mixed-use assets in prime locations within Europe’s major cities. We believe now is the right time to dispose of the asset, which will enable us to target higher growth opportunities and continue our ambition of delivering superior investment outcomes.”
The latest is part of an ongoing partnership between Aviva Investors and PSP Investments which includes an investment portfolio across London and a co-investments of £250m (€298m) in commercial property in Cambridge in 2019.
Most recently the partnership announced plans to improve the sustainability credentials of 30 Golden Square Soho, London, through an extensive refurbishment programme.
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