ATP swoops on major office block in Copenhagen

Danish pension fund ATP has boosted its domestic property portfolio with the acquisition of Dong Energy's headquarters in Copenhagen for DKK 1.9 bn (€260 mln).

The complex, one of Denmark's largest office blocks, provides a total of 86,000 m2 of accommodation including 27,000 m2 of underground parking spaces.

Vendor Dong Energy has agreed to lease back the asset on a 15-year lease running from year-end 2013. The energy company, which is majority-owned by the state, is one of the country's largest with 6,500 employees.

Michael Nielsen, CEO of ATP Real Estate, said 'the long lease, the high technical quality and the central location of the building' were all key factors in the company's decision to purchase it.

The deal is part of ATP's strategy of focusing on large, modern buildings leased on a long-term basis to strong occupiers.

Earlier this year the pension fund acquired a 46% stake in the newly-built UN City complex providing 46,000 m2 in the Danish capital.

ATP has also held an indirect 6% stake in Rosengårdcentret in Denmark since spring 2013 when the mall was acquired for €384 mln by the ECE fund in which ATP is a partner.

Rosengårdcentret is Denmark's second-largest shopping centre after Fields in Ørestad, Copenhagen, which comprises 115,000 m2. Fields is owned by Steen & Strøm, the Nordic arm of European shopping centre group Klépierre.

Rosengårdcentret (Rose Garden) comprises 160 shops on a leasable area of more than 100,000 m2 and about 3,000 free parking spaces. Around 7.5 million customers visit the centre every year.