Danish pension fund ATP has agreed to acquire half of Danica's 16-property strong shopping centre portfolio valued at €1.9 bn.
As part of the deal, the largest property transaction ever signed in the country, ATP Real Estate will pay around €950 mln to buy half of the portfolio and will hold the assets in joint venture with Danica.
The portfolio consists of 16 centres across Denmark, the majority of which located in Greater Copenhagen (9), and includes some of the largest and most prestigious retail schemes in the country. The centres provide a total area of around 400,000 m2 with around 1,100 tenants and over 60 million visitors a year.
ATP Real Estate's CEO, Michael Nielsen said the acquisition reflects the company's 'focus on investments that have a healthy risk diversification and provide long-term stable returns'. 'Together, ATP Real Estate and Danica will work to enhance the centres' position on the Danish market for the benefit of both visitors and retailers alike,' he added.
Some €130 mln are being invested to renovate and redevelop the schemes, ATP said.
Anders Svennesen, CIO at Danica added: 'We are pleased to join forces with ATP in leading Denmark’s best shopping centres into the future. We are confident that, together, we can develop the centres so that not only will they live up to market expectations, but they will also provide customers with a positive shopping experience, and will be a good investment for our pension fund members.'
Danica has owned the centres for a number of years. The disposal is aimed at reducing its exposure to shopping centres, which after the sale will represent around 33% of the property portfolio, from 60% previously.
Danica's shopping centre portfolio includes Amager Centret, City 2 in Høje Taastrup, City Vest in Århus, Glostrup Shoppingcenter, Helsingør Bycenter, Hvidovre C, Ishøj Bycenter, Kolding Storcenter, Lyngby Storcenter, Nørrebro Bycenter, Randers Storcenter (pictured), SlotsArkaderne in Hillerød, VestsjællandsCentret in Slagelse, and Friis in Aalborg.
