Danish pension funds buy department store property

Danish pension funds ATP and PensionDanmark have acquired the buildings on Kongens Nytorv which house Copenhagen's Magasin department store.

ATP Real Estate and PensionDanmark each hold a 50% share in the properties. The investment volume of the transaction was not disclosed. The two pension funds already own the three Magasin properties in Lyngby, Odense and Aarhus respectively.

'We are very content with this investment, which is perfectly in line with our focus on large investments, long leases and secure returns. We are familiar with the tenant Magasin/Debenhams from our previous investments and are looking forward to continuing the positive co-operation,' said Michael Nielsen, CEO of ATP Real Estate.

PensionDanmark CEO Torben Möger Pedersen added: 'The investment in the Magasin property on Kongens Nytorv is part of our strategy to invest in commercial properties on prime locations with solid tenants and long leases. The (pension fund) members can look forward to good returns on the investment, which is in accordance with our plan to have approximately 10% of PensionDanmark's assets allocated to real estate'.

Magasin department store has been conducting business in this property since 1870. The original building on the site dates back to 1677, but has been regularly developed and renovated.

The seller of the property is Solstra Investments. The current main tenant, Magasin, is part of the Debenhams group, which is listed in the UK. ATP Real Estate will manage the property, as it already does for the other three Magasin properties owned by the investors.

At end-2013, ATP Real Estate’s exposure to domestic and foreign real estate amounted to DKK 34 bn (€4.5 bn). PensionDanmark has invested DKK 11.4 bn in residential and commercial properties primarily in Denmark.