Global asset manager Aviva Investors has sold Galleri K, a mixed-use retail, leisure and office asset situated in the centre of Copenhagen’s retail district.
Financial details were not disclosed, but the firm said that the sale secured a substantial return on the property ahead of schedule, which was originally acquired in 2020 as part of Aviva Investors partnership with Canada's Public Sector Pension Investment Board (PSP Investments).
Since acquiring the building, Aviva Investors has been able to complete approximately 10,000 m2 of office and retail lettings, bolstering occupancy rates from 38% to nearly 99% today.
The four-storey building comprises a total of approximately 24,600 m2 including approximately 10,000 m2 of retail and leisure space, 9,500 m2 of modern office space with 5,000 m2 of storage and parking.
George Fraser-Harding, fund manager at Aviva Investors, said: 'Galleri K is an example of our ability to create value and lock-in returns for our clients through sound active management and a 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 underwrite.
'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.'
Situated on the corner of Østergade and Kristen Bernikows Gade, Galleri K is located on Copenhagen’s high street at the centre of the city’s retail district and benefits from proximity to the Cityringen metro line.
The deal marks the latest activity for the partnership between Aviva Investors and PSP Investments. Other ventures include an investment portfolio across London and the CB1 Estate in Cambridge, a master-planned sustainable, mixed-use development spanning 26 acres (10.5 ha) in the Station Road area of the city.
Most recently the partnership announced plans to improve the sustainability credentials of 30 Golden Square Soho, London, through an extensive refurbishment programme.
Aviva Investors was advised by Capital Investment and Bruun & Hjejle.
