Standard Life Investments' European Real Estate Club (Euro Club III) has acquired a block of three adjoining mixed-use buildings in the centre of Copenhagen.
The properties, at 34 and 38 Frederiksberggade and 29-33 Vestergade, comprise a total of 4,200 m2. One building is entirely occupied by the international retailer H&M Group, the others have different tenants.
Standard Life Investments plans to invest in a comprehensive repositioning of the other properties over the next three years, including a significant development in Frederiksberggade 38 to create an additional 3,000 m2 of space. This will increase the total potential leasing area of the buildings to 7,200 sqm, the group said.
'Acquiring these quality assets reflects our strategy of targeting prime commercial property in core European markets, including Denmark,' said Daniel McHugh, head of Continental European real estate at Standard Life Investments and fund manager for all three Euro Clubs. 'The scope for active asset management and enhancement of these properties will create a strong income stream and returns for investors.'
Standard Life Investments recently completed the final closing of Euro Club III, hitting the vehicle's €300 mln equity raise limit.
Standard Life Investments has committed around €500 mln to Danish real estate since 2013. The team's strategy in the country is focused on investing in high-quality properties with the potential for further enhancement through asset management in core locations such as Copenhagen.
