Case Study
King Square
A once in a generation redevelopment opportunity in the very heart of Copenhagen
Key Information
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Client
Aberdeen Standard Investments
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Size & Location
49,000sq m in central Copenhagen.
Addresses:
Holmens Kanal 2-18
Vingårdstræde 3
Laksegade 6, 7, 8, 10 and 11
Bremerholmen 37
Asylgade 1 -
Business Lines Involved
The Challenge
Sale of historical complex in Copenhagen with short term income but large repositioning opportunity.This sale comprises circa 49,000 sq m spanning across 15 buildings located by Kongens Nytorv in the area between Holmens Kanal, Bremerholm and Vingårdstræde. The oldest buildings are more than 200 years old and accommodate important architectural history incl. listed premises.
The property is currently occupied by one tenant, Danske Bank, that is building a new HQ and expected to vacate in 2023. The property can hereafter be developed with office, hotel, retail and residential units according to new local plan.
The 15 buildings are interlinked and constitutes a complex HQ for just one tenant. A future repositioning of the property will require a significant development.
Solution & Outcome
Structured sales process for selectively invited investors. CBRE had structured a targeted and well-prepared marketing approach to allow targeting investors and create competition. The process ensured that all investors were treated equally, and that the competition between the investors was constant and fully optimised while keeping the process confidential by means of NDA.CBRE composed an exhaustive Investment Memorandum and transaction website to be presented to selected investors without a fixed asking price then emphasizing the quality of the asset to attract significant investor interest. These would be pre-qualified investors, using CBRE’s deep market knowledge and transaction experience in order to establish the best competitive tension and reach the highest price.
Following the review of marketing material, investors were invited to submit a non-binding offer. The offers were evaluated by the Vendor and CBRE based on a number of criteria. Several bids were received and to refine the competition CBRE advised the vendor to select parties to enter into a second bidding round. By giving more information, guidance and underwriting, we allowed the investors to qualify and significantly refine 2nd round bids. Execution certainty was to be ensured through identifying the source of equity of each potential bidder and selecting the investor offering the best capacity to deliver.
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