Public Sector Pension Investment Board (PSP Investments), one of Canada's largest pension investment managers, has joined forces with investment manager Aviva Investors to acquire Galleri K, a mixed-use retail, leisure and office asset in Copenhagen.
Located at the corner of Østergade and Kristen Bernikows Gade, Galleri K is situated on Copenhagen’s high street at the centre of the city’s retail district and benefits from proximity to the new Cityringen metro line. The 24,500 m2, four storey building comprises approximately 10,000 m2 of retail and leisure space, 9,500 m2 of modern office space and 5,000 m2 of storage and parking. It is currently let to a diverse range of strong national and international brands.
The asset was sold by Patrizia, which bought the asset back in 2015 for around €200 mln as a co-investment with a German pension fund.
Stéphane Jalbert, managing director, Europe and Asia Pacific, Real Estate Investments, PSP Investments, said: 'As we continue to expand our partnership with Aviva Investors, we are thrilled to be entering Copenhagen - a supply-constrained market that is recognised as a top European tech hub and benefits from a highly educated labour pool. This acquisition is in line with our strategy to invest in key innovation markets.'
The deal is Aviva Investors’ second acquisition in Copenhagen this year, with the business having purchased a portfolio of three mixed-use assets in the city earlier in January. This deal also represents a continuation of the partnership between Aviva Investors and PSP Investments, following previous co-investments of £250 mln in commercial property in Cambridge in 2019, and over £400 mln in central London in 2015.
George Fraser-Harding, Real Estate Investments, Aviva Investors commented: 'We are pleased to again be expanding our successful partnership with PSP Investments and undertaking our first project together in continental Europe. Copenhagen is a city of strategic importance for Aviva Investors, and one of four tech cities in Europe that we expect to experience strong performance going forward. The city is highly liveable and has attracted a strong labour pool in recent years. We expect this to continue in the long-term, strengthening the performance of its retail sector and the potential to deliver positive returns within our portfolio.'
Aviva Investors Real Assets and PSP Investments were advised by Capital Investment, Bruun & Hjejle, Linklaters and Deloitte. Patrizia AG was advised by RED, an affiliate of Cushman & Wakefield, Plesner, EY, PwC and NIRAS.
