Case Study
Hortus Regali
CBRE advised on the sale of a highly diversified portfolio of residential properties.
Key Information
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Client
Andrew Holding ApS
and
Kami Finans Aps -
Size & Location
17.546 sq m residential in Kolding, Southern Denmark.
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Business Lines Involved
The Challenge
A highly diversified portfolio of residential properties, most of which had 2-3 leases and thus was very small. The portfolio was spread out over Kolding, except for one property that was located in Haderslev.114 leases were rent regulated under the rules of cost determined rent.
A large part of the properties were affected by urban renewal works, and as many as 92 of the mortgages were urban renewal loans of various types with associated rental restrictions that had to be handled.
To date, no transactions of a housing portfolio of anywhere near the same size have taken place in the area.
In other words, it was a portfolio that could be difficult to comprehend at first glance. Due to the size of the portfolio, international and the largest national investors should be made interested in acquiring the portfolio.
Solution & Outcome
CBRE created a systemic overview of the portfolio, the related rental regulation types, the legal effects of urban renewal loans, etc. Everything was compiled into a comprehensive Investment Memorandum and an accompanying Excel package that made it easy for investors to make their own further calculations.CBRE combined the royal history of the area with the properties and created a common thread, which included a nice video and logo - a royal crown of properties. Both can be seen below. See the video and logo below.
CBRE also advised the sellers to make the transaction off-market in the form of a trade of the two companies, each owning 50% of the parent company of the real estate company, which made the transfer of the properties significantly smoother.
Five investors, including both international investors and major Danish institutional investors, quickly showed interest in buying. One investor got exclusivity and trade was concluded.
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