MARKET REPORT ISSUE III 2017

Transkript

1 MARKET REPORT Cushman & Wakefield RED facilitated the sale of EY s headquarter on Osvald Helmuths Vej 4 to the Danish Building and Property Agency for DKK M.

2 EXECUTIVE SUMMARY A CONTINUOUS HIGH ACTIVITY IN ALL SEGMENTS We continue to experience high investment activity across all segments and we still expect the transaction volume to reach another post-crisis high this year. Investments in residential properties are still a major driver for the activity, but we have also seen noticeably higher activity within the industrial segment. Investments in properties on the high street market in Copenhagen continue to boost the overall retail volume. The high street market is particularly attractive to foreign investors, and in the article in this report, we will explain some of the most important factors encouraging foreign investors to enter the Copenhagen high street market. We expect the optimism on the high street market to continue as the Danish economy continues to progress, demographic conditions are favorable coupled with Copenhagen retail shopping streets being the most attractive within the Nordics. Nordic corporation leaders are focused on strategies to attract and retain talented employees, and at the same time, they must continually find ways to reduce occupancy costs. The overriding challenge is to balance these goals, which are often in opposition to one another and put to test when acquiring office space. Lastly, we strongly recommend to visit our website and try our dynamic analysis tool, where we continuously update the data to reflect the latest development. Enjoy the report! INVESTMENT MARKET OFFICE 2016 Q Q2 CHANGE Prime yield (Copenhagen City) 4.15% 4.00% -15 bp Investment volume in million Vacancy (Copenhagen City) 7.70% 6.80% -90 bp RETAIL 2016 Q Q2 CHANGE Prime yield (Copenhagen High Streets) 3.50% 3.00% -50 bp Secondary yield (Copenhagen Side Streets) 4.75% 4.00% -75 bp Investment volume in million INDUSTRIAL 2016 Q Q2 CHANGE Prime yield (Copenhagen Area) 7.00% 6.25% -75 bp Prime yield (Triangle Area) 7.25% 6.50% -75 bp Investment volume in million TRANSACTION VOLUME (BN DKK) Q Q DKK 74.7 BN ~ EUR 10.0 BN In this issue we have a new Occupier section in which the focus is on a new survey in the Nordics conducted by Cushman & Wakefield. The survey finds that Nicholas Thurø Managing Partner Cushman & Wakefield RED Residential Office 8.6 Industrial 7.8 Retail 6.3 Hotel 5.5 Land 2.2 Other 2 / 31

3 CONTENT ISSUE III FOCUS... 6 MACROECONOMICS... 9 INVESTMENT MARKET OFFICE RESIDENTIAL RETAIL INDUSTRIAL TRANSACTIONS OCCUPIER MARKET OFFICE RETAIL RETAIL - FOOTFALL ANALYSIS APPENDIX - DANISH TRANSLATION DANSK VERSION AF FOKUS ARTIKEL / 31

4 EUROMONEY WINNER OF 4 AWARDS / 31

5 ISSUE III FOCUS 5 / 31

6 DANSK VERSION PÅ SIDE 30 ISSUE III FOCUS HIGH STREET CONTINUES TO BE AN ATTRACTIVE MARKET The attention often falls on Copenhagen, when foreign investors with a high street focus look for new investment opportunities in Europe. Despite the fact that we increasingly observe that investors look outside Copenhagen for investments opportunities in the retail segment, the high street market in Copenhagen continues to be the retail investment market driver. There are three particularly attractive factors that results in foreign investors dominating the high street market in Copenhagen, and it seems as if the trend is not just a temporary hype. THE OPTIMISM CONTINUES ON THE HIGH STREET MARKET Over the past few years, the high street transactions in Copenhagen have accounted for between 35% and 56% of the retail volume in Denmark. Year to date retail volume in 2017, high street transactions in Copenhagen constitute 56%. Thus, the high street segment in Copenhagen still occupies a large part. We expect the optimism to continue on the high street market. According to Claus Bælum, Partner and Head of Capital Markets in RED, one reason is the positive Danish macroeconomic conditions: The strong Danish economy combined with an increasing consumer confidence and a continued wish to settle in the city, plays an important role in the propensity to invest in the high street segment in Copenhagen. The high streets are not getting larger, however, the catchment area is. The increased interest in retail properties in the two primary shopping streets in Copenhagen, Strøget and Købmagergade, is seen especially among foreign investors. But what factors drive foreign investors to enter the Copenhagen high street market? We will take a closer look at this in this article. TRANSACTION VOLUME HIGH STREET TRANSACTIONS SHARE OF RETAIL 2.5 BN DKK 64% 36% THE DRIVERS In the past five years alone, high street properties worth more than DKK 19.7 bn have been sold and 68% were acquired by foreign investors. Now, we also observe that foreign to foreign transactions are increasing significantly i.e. transactions where the buyer as well as the seller are foreign. Year to date high street volume in 2017, foreign to foreign transactions accounted for 85%. By comparison, we observed no foreign to foreign transactions in neither 2012 nor 2013, while in , 48% of the high street volume consisted of foreign to foreign transactions. In our opinion there are three particular factors that make foreign investors dominate the high street market in Copenhagen: 1.6 BN DKK 44% 56% BN DKK 42% 58% 3.6 BN DKK 62% 38% BN DKK 58% 42% HIGH STREET TRANSACTIONS 4.5 BN DKK 36% 64% BN DKK YTD 56% 44% REMAINING RETAIL TRANSACTIONS 1. FAVORABLE LOAN CONDITIONS Not surprisingly, one of the main reasons is the access to inexpensive financing, which has followed in the wake of the interest rate development. The Danish mortgage system offers the lowest lending costs in Europe for the first 60% of the purchase price, and the foreign investors are usually property funds with a desire to leverage their investments. 2. STILL HIGHER YIELDS ON HIGH STREET PROPERTIES IN COPENHAGEN COMPARED TO OTHER EUROPEAN CITIES Another important factor is that the yield on high street properties in Copenhagen is still higher compared to other European 5.0 BN DKK 4% 96% BN DKK 35% 65% 2.8 BN DKK 39% 61% 2016 DANISH FOREIGN 3.9 BN DKK HIGH STREET TRANSACTION VOLUME - DANISH INVESTORS VS. FOREIGN INVESTORS 2.2 BN DKK 100% 56% 44% 2017 YTD 6 / 31 FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX

7 cities. Data from Cushman & Wakefield shows that the yield of high street properties in Copenhagen currently is 50 basis points higher than in cities such as Paris and London. This combined with the Danish mortgage system results in a substantially higher return on invested capital. Previously, as the graph below also shows, there was a major difference in the yield for prime high street in Copenhagen compared to Paris and London. However, in recent years, this gap has become smaller as high street properties in Copenhagen are considered very safe assets, due to low re-letting risks and a very liquid and transparent transaction market. Moreover, it seems as several foreign investors regard Copenhagen as a metropolis with a growing international significance, which also explains why the gap between the yield for prime high street in Copenhagen compared to Paris and London has become smaller. With a growing population, growing catchment area and a very attractive city centre, which is becoming more and more popular amongst tourists, customers and shops, Copenhagen has a very strong investment profile in the eyes of Hines, says Peter Epping, Managing 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% PRIME NIY - HIGH STREET 0.00% COPENHAGEN PARIS LONDON 1.6 BN DKK 38% 56% 6% 2012 HIGH STREET TRANSACTION VOLUME - INVESTORS INVESTMENT PROFILE Director and Fund Manager at the global property fund, Hines. 3. VALUE CREATION 3.6 BN DKK 65% 14% 22% BN DKK 22% 60% 18% 2014 Several international investors also observe attractive opportunities for value creation in the high street market, which is why the Copenhagen high street market is permeated by several professional international investors with both high street property development skills and experience from other major cities. For example, in 2014 the international investment company Avignon Capital, acquired Købmagergade 26, which at that time could be considered an opportunistic investment. Avignon Capital invested in a new large ground floor, which was completed in 2016, and let out to the international clothing brand Superdry. This has increased the value of the property due to the significant rental uplift. HIGH STREET EVOLUTION: FROM OP- PORTUNISTIC & VALUE-ADD TO CORE In recent years, core investments have represented a fairly large proportion of the total investment volume in the high street 5.0 BN DKK 64% 36% 2015 segment. The graph above shows the development in high street transactions, divided into risk classes. This is a natural consequence as foreign value-add and opportunistic funds are selling their properties, after finalizing the value-add development, on to other funds focusing more on a core profile. Avignon Capital s sale of Købmagergade 26 in the beginning of the year to Hines is an example of this. OUTLOOK 2.8 BN DKK 61% 29% 11% 2016 CORE VALUE ADD OPPORTUNISTIC 2.2 BN DKK 64% 27% 9% 2017 YTD At RED we are still convinced that there is good reason to be optimistic in relation to the high street market. The Danish economy continues to progress, demographic conditions are favorable coupled with Copenhagen retail shopping streets being the most attractive within the Nordics. For investors with a Nordic high street strategy, Copenhagen is the most liquid market and also the market with the greatest concentration of international tenants. In addition to this, the Danish mortgage system still offers the opportunity to gain an attractive yield even after several years with declining yields. The interest rate sensitivity is still present, however, investors can solve this by choosing to finance based on a long term interest rate. FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX 7 / 31

8 MACROECONOMICS 8 / 31

9 MACROECONOMIC OVERVIEW DENMARK CONTINUES TO DISPLAY A COMPETITIVE ECONOMIC FOUNDATION The Danish economy is continuously strengthening its position. Purchasing power is rising amongst the Danes, as employment is improving along with higher wages. This improvement, coupled with low inflation rates, results in greater spending power for consumers. With interest rates at an all-time low, Denmark has seen a rise in commercial and private real estate prices. In general, economists are confident, that the economic drivers in Denmark are strong enough to handle future uncertainties in the economy. The Danish economy continues its modest, but steady strengthening. The Danish National Bank has characterized the ongoing upturn as balanced and broadly based. The growth in GDP has been steady and less volatile since 2013, with a significant upturn in Q1 and Q In the first six months of 2017, Denmark s GDP grew 2.6% compared to the same period last year. Compared to the rest of EU and the US, the Danish economy outperformed both economies during the first six months of 2017, as the EU posted a growth of 2.1%, while the US economy grew by 2.0%. Inflation rates in Denmark reached 1.5% in Q2 trailing twelve months. This is the same level as the inflation in the EU, and the first time since February 2016, that Denmark didn t have a lower inflation rate than the EU. In the 12 months from Q until Q2 2016, inflation rates in Denmark only rose by 0.1%. Interest rates in Denmark have continued to reach all-time lows since Q2 MACROECONOMIC VARIABLES KEY VARIABLE A YEAR AGO MOST RECENT TREND GDP Growth Rate y/y 0.60% 2.50% Inflation Rate y/y 0.10% 1.50% Unemployment Rate - Denmark 6.28% 5.90% Unemployment Rate - Copenhagen Region 6.10% 5.50% 10 year Government Bond 0.08% 0.35% Short Term Mortgage Rate - 1 and 2 year bonds -0.52% -0.63% Long Term Mortgage Rate - 30 year bonds 2.56% 2.47% Source: Statistics Denmark, Association of Danish Mortgage Banks and The Danish National Bank INFLATION GROWTH 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% -0.50% -1.00% Source: Eurostat DENMARK Economists frequently discuss the development of interest rates in Denmark, and expectations from the Danish National Bank is that we might see rising interest rates in the near future. Due to the stability of the economic drivers, the increase is expected to happen in a controlled manner though. The domestic demand continues to develop positively, mainly driven by low interest rates, higher dis- EUROPE (28 COUNTRIES) posable income, as well as higher private savings and wealth deposits. Employment went up with 11,000 people from Q to Q2 2017, reducing the unemployment to 170,000 people, which equals 5.9% of the workforce. The rise in employment has been steady since late 2012, where unemployment reached 230,000 people. The decline in unemployment is solely driven by the private sector, and primarily within the areas of construction and commerce. FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX 9 / 31

10 THE LETTING OF BANK In continuation of the development of POSTGAARDEN, Cushman & Wakefield RED prepares the second half of the block, BANK, for retail and food & beverage. A local bank s former hall is being redeveloped to house large restaurants and will also be divided into several leases for the purpose of retail. The municipality is prepared to redo the surrounding streets, which is expected to make BANK a new shopping attraction in the secondary area. 10 / 31 FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX

11 INVESTMENT MARKET 11 / 31

12 INVESTMENT MARKET - OFFICE A CONTINUOUS HIGH LEVEL OF INVESTMENT ACTIVITY FROM DANISH INVESTORS Following a transaction volume of DKK 2.4 bn Q1, the investment activity in Q2 almost tripled and reached approx. DKK 6.6 bn. Danish investors have continued their previous trajectory and are once again the most active investors accounting for 71% of the transaction volume in Q2. Especially property funds had a busy quarter as they accounted for 30% of the transaction volume and were the most active investor segment. However, looking over the trailing twelve months, real estate companies accounted for 30%, while property funds came second with 25%. The Danish building and property agency contributed to the total transaction volume by acquiring EY s 55,000 sqm office building in Frederiksberg, Flintholm at DKK 1.1 bn. EY, AIG and Eniro will continue as tenants for the time being, but it will eventually become available to The Danish building and property agency. Novo A/S acquired a approx. 9,000 sqm office property in Hellerup for DKK 420 M from the institutional investor, PKA. Novo A/S has been one of the tenants since 2010, but because of the risk of future space shortage, the company decided to buy the property. We have experienced prime yield compression in the last couple of years and now the prime office yields in CBD have fallen 25 basis points to 3.75 % this quarter. INVESTOR BREAKDOWN Q Q PRIME YIELDS Others 20% Institutional Investors Source: Cushman & Wakefield RED Private Investors 0% 20% 40% 60% 80% 100% SUBAREA Q Q Q Copenhagen City (CBD) 4.75% 4.15% 3.75% Copenhagen E & W 5.75% 5.50% 4.75% Frederiksberg 5.75% 5.50% 4.75% Harbour areas 4.75% 4.15% 3.75% South Harbour 6.00% 5.75% 5.50% Ørestad 5.75% 5.50% 5.50% Copenhagen N & NW 6.50% 6.50% 6.00% South and West of Copenhagen 7.25% 7.25% 7.00% North of Copenhagen 5.25% 5.00% 5.00% 5% 18.5 BN DKK Real Estate Companies 20% Property Funds 25% DANISH INVESTORS - 77 % FOREIGN INVESTORS - 23 % 30% FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX 12 / 31

13 INVESTMENT MARKET - RESIDENTIAL RESIDENTIAL INVESTORS SEEKING NEW OPPORTUNITIES OUTSIDE COPENHAGEN The residential market continues to be the largest investment segment measured by transaction volume. Altogether, the residential transaction volume reached a total of DKK 25.8 bn in the past 12 months (Q Q2 2017), in which the first half of 2017 accounted for approx bn. This might indicate that the segment is reaching a natural limit, after many years with huge growth in total transaction volume. In 2016, we saw a total of 25.4 bn of residential transactions, where 31.1% of those transactions involved properties outside of Copenhagen. In 2017, that number had increased to 44.5%. Currently, there is a limit for new residential construction in Copenhagen, with most of Nordhavn, Carlsberg Byen, Ørestad, being bought and build. Lower supply combined with high investment activity has forced investors to look outside of Copenhagen, such as Aarhus, Aalborg and smaller cities in Denmark. The investment volume in Q was propped by two transactions. Ø-Huset, a new residential project in Ørestaden bought by Heimstaden for DKK 0.9 bn, with the permission to build 300 apartments and limited retail on 27,300 sqm and SEB also sold a portfolio of residential properties located north of Copenhagen, to Core Property Management. The properties accumulate to 30,876 sqm, with a price estimated at DKK bn. INVESTOR BREAKDOWN Q Q Private Investors 15% Institutional Investors 9% Source: Cushman & Wakefield RED PRIME MARKET RENT DKK/SQM SUBAREA Q Others 5% Copenhagen City 2,000-2,200 Copenhagen E, W & N 1,700-1,900 Frederiksberg 2,000-2,200 North Harbour 2,000-2,200 South Harbour 1,600-1,800 Copenhagen S 1,500-1,700 North of Copenhagen 1,700-1, BN DKK Property Funds 32% DANISH INVESTORS - 42 % FOREIGN INVESTORS - 58 % 0% 20% 40% 60% 80% 100% PRIME YIELDS Real Estate Companies 39% SUBAREA Q Copenhagen Area - rent control % Copenhagen Suburb - rent control % Copenhagen Area - market rent 3.60% Copenhagen Suburb - market rent 4.50% FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX 13 / 31

14 INVESTMENT MARKET - RETAIL LOW ACTIVITY ON COPENHAGEN HIGH STREETS RESULTED IN QUIET Q2 The investment activity in the retail segment was low in Q2 2017, as we only registered transactions with a combined volume of DKK 0.7 bn, which is the lowest since Q The volatility in each quarter is mostly due to a few large investments affecting the total transaction volume. The non-existing activity on the high street is one of the reasons for the low transaction volume in Q In Q1 2017, the global property fund Hines acquired five prime high street assets in Copenhagen at a price of approx. DKK 0.9 bn. Hines acquisition of high street assets shows how a single transaction can effect the total transaction volume. This quarter we have not observed any pri-me high-street assets sold or bought. However, BRFKredit has sold its distressed 20,000 sqm shopping center, Gallerierne in Hillerød north of Copenhagen, to a group of private investors for approx. DKK 110 M. The retail segment has historically been dominated by foreign investors, however, this quarter it has been more evenly divided. Property funds are still the most active investors in this segment with a 64% share of the transaction volume the last 12 months. In recent years, prime yields have been downward sloped. However, this quarter prime yields have been stable compared to the previous quarter. As seen below, the prime yields on Strøget and Strøget area are still at 3.00% and 4.00% respectively. INVESTOR BREAKDOWN Q Q Real Estate Companies 8% Private Investors 17% Source: Cushman & Wakefield RED PRIME YIELDS Institutional Investors 7% Others 0% 20% 40% 60% 80% 100% STREET/SUBMARKET Q Q Q Strøget (incl. Vimmelskaftet) 3.75% 3.50% 3.00% Strøget area 4.75% 4.50% 4.00% Østerbrogade 5.50% 5.25% 5.25% Nørrebrogade 6.00% 5.50% 5.50% Købmagergade 3.75% 3.50% 3.00% Lyngby 5.50% 5.25% 4.75% 4% 7.8 BN DKK DANISH INVESTORS - 29 % FOREIGN INVESTORS - 71 % Property Funds 64% SHOPPING CENTRES Copenhagen 5.00% 4.50% 4.00% FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX 14 / 31

15 INVESTMENT MARKET - INDUSTRIAL POST-CRISIS HIGH TRANSACTION VOLUME Q resulted in a post-crisis high transaction volume of DKK 6.6 bn, which corresponds to 76% of the total transaction volume in the past 12 months. This is clearly a segment foreign investors find lucrative, as they account for 93% of the investment activity this quarter. Looking at the activity of the last 12 months, foreign investors accounted for 85% of the investment activity. INVESTOR BREAKDOWN Q Q Real Estate Companies 3% Institutional Investors Others 2% 5% Private Investors 5% Property Funds 86% One of the largest deals took place, when NREP Logistics Property Fund was founded in April by NREP with numerous Danish and international institutional investors. Eight industrial properties with a total size and price of approx. 329,000 sqm and DKK 2.45 bn. were added to the fund s portfolio in Q Another noticable transaction took place when Lemvigh-Müller sold a 75,000 sqm industrial portfolio consisting of properties in Køge, Odense and Kolding in a sale & leaseback (S&L) transaction to the English property fund, M&G Real Estate for approx. DKK 440 M. The prime yields for logistics properties are facing a downward pressure. The Copenhagen area, the Triangle Area and the Aarhus area in Jutland, have all experienced a drop in the yield level of -25 basis points and are now at 6.00%, 6.25% and 6.50%, respectively. Source: Cushman & Wakefield RED 0% 20% 40% 60% 80% 100% PRIME MARKET RENT DKK/SQM 8.6 BN DKK DANISH INVESTORS - 15 % FOREIGN INVESTORS - 85 % PRIME YIELDS SUBAREA Q Copenhagen Area 575 Triangle Area 475 Aarhus Area 425 Modern logistics properties with long leases SUBAREA Q Copenhagen Area 6.00% Triangle Area 6.25% Aarhus Area 6.50% Modern logistics properties with long leases FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX 15 / 31

16 THE SALE OF 5 FORMER UNIVERSITY PROPERTIES IN CENTRAL COPENHAGEN Købmagergade is one of the five properties in central Copenhagen which are offered for sale by Freja Ejendomme in cooperation with Cushman & Wakefield RED. The five properties are located at: Bispetorvet 1-3 Købmagergade (picture) Købmagergade 50 Sankt Peders Stræde 19 Studiestræde 34 For information about the properties: frejaejendomme.red-cushmanwakefield.dk 16 / 31 FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX

17 FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX 17 / 31

18 11 RESIDENTIAL PROPERTIES ON AMAGERBROGADE Akelius acquired 11 residential properties on Amagerbrogade with 128 condominiums from Capman and Keystone at a total price of DKK 370 M. 18 / 31 FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX

19 TRANSACTIONS 19 / 31

20 TRANSACTIONS OFFICE STREET STREET NAME NAME LOCATION LOCATION DATE DATE SIZE SIZE (SQM) (SQM) PRICE PRICE VENDOR VENDOR TYPE TYPE VENDOR VENDOR NAME NAME BUYER BUYER TYPE TYPE BUYER BUYER NAME NAME (M DKK) (M DKK) 15 Commercial Properties CPH Area Q3 88,250 1,800 Institutional investor Danica Real estate company Wihlborgs A/S Hedeager 1-5 & Kystvejen 29 Århus 2016/Q2 23, Real Estate Company C.W. Obel Institutional Investor PensionDanmark Rådhuspladsen 4 CPH W Q3 14, Institutional investor Alm. Brand Ejendomsinvest A/S Property fund Standard Life Aberdeen Holmens Kanal 2 CPH City 2016/Q1 49,065 1,400.0 User Danske Bank Property Fund Standard Life Investments Linnés Allé 2 Høje-Taastrup Q3 8, User Det Danske Hedenselskab Institutional investor PensionDanmark Albanigade 30 Odense 2016/Q1 4, Institutional Investor Danica Pension Private Investor Karsten Bill Rasmussen Marielundvej 46 Herlev Q3 23,478 Est. 155 Property fund Cromwell Private investor Rent Estate Rytterkasernen 11 Odense 2016/Q1 8, Institutional Investor Danica Pension Private Investor Karsten Bill Rasmussen Klostermarken 12 Viborg Q3 10, User Det Danske Hedenselskab Institutional investor PensionDanmark Dag Hammarskjolds Allé 28 CPH E 2015/Q4 1, Private Investor Fritz Henrik Schur Public Institution The Turkish Embassy Osvald Helmuths Vej 4 Frederiksberg Q2 37,000 1,085 User EY Public institution Bygningsstyrelsen Overgaden 11 Commercial Oven Vandet Properties 60A Denmark CPH City 2015/Q4 Q2 N/A 8,826 1, Institutional Public Institution investor Danica The Danish Armed Forces Private Unknown Investor investor Lennart Unknown Lajboschitz investor (Søkvæsthuset) Tuborg Havnevej 19 Hellerup Q2 8, Institutional investor PKA User Novo A/S Store Kongensgade 22 CPH City 2015/Q4 1, Real Estate Company JL Ejendom Other Fund Erik & Susanna Olesens Almenvelgørende JØP & DIPFond Ottiliavej 7 Valby Q2 33, User H. LUNDBECK A/S Institutional investor Store Pakhusene Kongensgade Århus 62 Ø CPH Aarhus City 2015/Q4 Q2 10,621 1,772 Est Developer Private Investor Domis Private Investor Real Institutional Estate Company investor Jeudan PFA Pension Stormgade Vesterbrogade 10 9B CPH City W 2015/Q4 Q2 10,103 2, UserPublic Institution Jyske Freja BankEjendomme Property Real estate Fund company Artha Jeudan Kapitalforvaltning Strømmen Holmboes 6 Allé 2 Nørresundby Horsens 2015/Q4 Q2 12,034 11, Real User estate company Kirk RTX og Thorsen A/S A/S Private Property Investor fund K/S NIAM Strømmen Kolding Åpark 8 Kolding Q2 6, Private investor KPC Institutional investor PensionDanmark Rigensgade 11 CPH City Q2 2, User Awapatent Real estate company Jeudan Albani Torv 2 Odense Q2 5, Private investor KPC Institutional investor PensionDanmark RETAIL STREET NAME LOCATION DATE SIZE (SQM) PRICE (M DKK) INDUSTRIAL STREET NAME LOCATION DATE SIZE (SQM) PRICE (M DKK) VENDOR TYPE VENDOR NAME BUYER TYPE BUYER NAME 4 Properties on Købmagergade CPH City Q3 3, Property fund Meyer Bergman Property fund Hines Amagertorv 19 CPH City Q3 2, User Lilly Brudekjoler User Richemont Group Gallerierne Shoppingcentre Hillerød Q2 20,064 Est. 110 Other BRFkredit Private investor Private investor HOTEL HOTEL NAME LOCATION DATE PRICE PER ROOM (DKK) PRICE (M DKK) VENDOR NAME VENDOR TYPE VENDOR NAME BUYER TYPE BUYER NAME Ejby Industrivej 4 & Fabriksparken Glostrup Q3 20, Other Kaupthing Bank Institutional investor Nordea NREP Logistic Property Fund Denmark Q2 Est. 329,000 Est. 2,450 Property fund NREP Property fund NREP Værftsvej 10 Køge Q2 36,776 Est. 230 User Dki Logistics Property fund NREP BUYER NAME Strand- & Badehotel Marienlyst (49.9%) Helsingør Q3 1,250,000 Est. 100 Private investor Artha Kapitalforvaltning Grand Hotel CPH W Q2 1,550,000 Est. 250 Arp-Hansen Hotel Group A/S Midstar Nordager 1 Kolding Q2 34, User Lemvigh-Müller Property fund M&G Real Estate Blangstedgårdsvej 23 Odense Q2 22, User Lemvigh-Müller Property fund M&G Real Estate Ground Handling Property - CPH Airport Kastrup Q2 4, Property fund MG Real Estate Property fund Pareto Securities Ullsvej 5 Køge Q2 14, User Lemvigh-Müller Property fund M&G Real Estate Amerikavej 7 Fredericia Q2 21, User DSV Property fund Pareto Securities 20 / 31 FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX

21 LAND STREET NAME PURPOSE LOCATION DATE SIZE (SQM. OF BUILDING RIGHT) PRICE PER SQM. OF BUILDING RIGHT PRICE VENDOR NAME BUYER NAME (M DKK) Rødovre Port Residential Rødovre Q3 37,500 Est. 5,300 Est. 200 Bricks Gefion Group Engvej 167 Residential CPH S Q3 12,000 Est. 5,404 Est. 65 PFA Pension Gefion Group Engvej 167 Hotel CPH S Q3 11,500 Est. 5,404 Est. 62 PFA Pension Gefion Group Hørspinderigrund Residential Kolding Q2 20,400 Est. 4,850 Est. 99 Fischer Ejendomme Ares Management Trekroner Syd Big box Roskilde Q2 20,000 Est. 4,500 Est. 90 Roskilde Municipality Buffin Real Estate RESIDENTIAL STREET STREET NAME NAME LOCATION LOCATION DATE DATE SIZE SIZE (SQM) (SQM) PRICE VENDOR TYPE TYPE VENDOR NAME NAME BUYER BUYER TYPE TYPE BUYER BUYER NAME NAME (M (M DKK) DKK) Residential Portfolio Denmark Q3 151,000 2,925 Property fund Ares Management Real estate company Heimstaden Hedeager 1-5 & Kystvejen 29 Århus 2016/Q2 23, Real Estate Company C.W. Obel Institutional Investor PensionDanmark Teglbroen P/S (PenSam, KPC Teglholmen CPH SW Q3 21, Developer Real estate company Heimstaden Holmens Kanal 2 CPH City 2016/Q1 49,065 1,400.0 User og Danske Sjælsø Bank Management) Property Fund Standard Life Investments AC Albanigade Meyers Vænge 30 Odense CPH SW 2016/Q1 Q3 18,660 4,300 Est Developer Institutional Investor MT Danica Højgaard Pension A/S Private Property Investor fund Karsten PatriziaBill Rasmussen Residential Rytterkasernen Portfolio 11 Odense CPH 2016/Q1 Q3 Est. 19,000 8,385 Est Private Institutional investor Investor Qapartments Danica Pension Group Private Real estate Investor company Karsten Kjøbenhavns Bill Rasmussen Boligejendomsselskab Lokesvej Dag Hammarskjolds 7-9 Allé 28 CPH Aarhus E Area 2015/Q4 Q3 13,000 1,596 Est Developer Private Investor Innovater Fritz Henrik Schur Public Property Institution fund The Catella Turkish Embassy Residential Overgaden Portfolio Oven Vandet 60A CPH City CPH S 2015/Q4 Q3 14,858 8, Property Public Institution fund CapMan The Danish Armed Forces Private Real estate Investor company Lennart Akelius Lajboschitz Residential Property AB Amager (Søkvæsthuset) Boulevard 115 CPH S Q3 8, Real estate company Jeudan User DIS Axel Store Strøbyes Kongensgade Vej, Poul 22 Bundgaards CPH City 2015/Q4 1, Real Estate Company JL Ejendom Other Fund Erik & Susanna Olesens Almenvelgørende Capman Valby Q3 Est. 10,000 Est. 300 Property fund Europa Capital Property fund Vej og Valby Maskinparksvej Fond Cortex Store Kongensgade Park 62 CPH City Odense 2015/Q4 Q3 13,500 1,772 Est Real Private estate Investor company Humlebo Private Investor Gruppen Real Private Estate investor Company Jeudan Niels Thorborg Søren Stormgade Frichs 10 Vej 53 CPH Aarhus City Area 2015/Q4 Q3 7,200 2,374 Est Developer Public Institution Innovater Freja Ejendomme Property Property Fund fund Artha Core Bolig Kapitalforvaltning Residential Strømmen 6 Portfolio Nørresundby Aarhus 2015/Q4 Q3 Est. 5,345 11,404 Est Private User investor Private RTX A/S investor Private Real estate Investor company K/S Tækker Strømmen Group Masnedøgade 28 CPH E Q3 3,670 Est. 145 Developer Vision Properties Property fund Thylander Store Regnegade 24 & 26 CPH City Q3 2,626 Est. 123 Developer Ejendomsvisioner Private investor Bo Ladegaard Bendtsen Tavervej & Klarup Q3 6,786 Est. 105 Property fund SF Management Private investor Erik Sørensen Marchalls Allé Aalborg Q3 5,520 Est. 99 Private investor Private investor Private investor Magnus Kjøller Wagnersvej 18, Offenbachsvej 2-20 og Mozartsvej 17 CPH SW Q3 5, Other Other Private investor Private investor Stadionvej Glostrup Q3 7, Real estate company Elverhøj Investment Group Property fund Core bolig Student Housing Portfolio CPH Q3 2,885 Est. 84 Developer TK Development Private investor Koncenton Linde Alle 18 Ballerup Q3 2,873 Est. 78 Real estate company Friheden Gruppen A/S Property fund Ares Management Fiolgade 13 Helsingør Q3 2, Developer Seguro Management Property fund Core bolig Ø-Huset CPH S Q2 27, Developer Skanska AB Real estate company Heimstaden Residential Portfolio CPH Area Q2 30,876 Est ,000 Institutional investor SEB Property fund Core Bolig Torvebyen 6 Køge Q2 14, Private investor Private investor Private investor Private investor Houmannsgade & Allegade 1-5 Horsens Q2 11, Institutional investor Pensam Private investor Private investor Borchsgade 6A Roskilde Q2 2, Private investor Private investor Private investor Private investor Åbrinken Odense Q2 4, Real estate company Humlebo Gruppen Private investor Niels Thorborg Frederiks Allé 75A-C Aarhus Q2 2, Private investor Private investor Property fund Capman Stadionvej Glostrup Q2 7, Private investor Private investor Real estate company Elverhøj Investment Group FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX 21 / 31

22 OCCUPIER MARKET 22 / 31

23 OCCUPIER MARKET - OFFICE OCCUPIER STRATEGY DRIVERS - NORDIC SURVEY Nordic corporation leaders are focused on strategies to attract and retain talented employees and on enhancing their productivity through innovation and operational excellence. At the same time, they must continuously find ways to reduce occupancy costs. The overriding challenge is to balance these goals, which are often in opposition to one another and put to test when acquiring office space. This is the main picture that emerged from a new survey conducted by Cushman & Wakefield Research and Insight in the Nordics. The survey examined not only location and workplace strategy as corporate value drivers, but also office rental decision s alignment with the wider business strategy. The results suggest these are only partly aligned due to the view that real estate is only to some degree a strategic tool and therefore sometimes allowing pressure on cost to take priority over other strategic challenges. KEY STRATEGIC CHALLENGES OF YOUR COMPANY (SELECT TOP 3)? 53% - Pressure on cost 50% - Talent sourcing and retention 44% - Operational excellence 35% - Regulatory environment 35% - Innovation 29% - Customer relations 18% - Corporate brand/identity 15% - Sustainability 15% - Global expansion 6% - Economic/policial volatility DO YOU CONSIDER YOUR REAL ESTATE AS A STRATEGIC TOOL? 60% 53% SEE PRESSURE ON COST AS A KEY CHALLENGE 50% SEE TALENT SOURCING AND RETENTION AS KEY STRATEGIC HAVE YOU ALREADY IMPLEMENTED AGILE WORKPLACE STRATEGIES INCLUDING DESK SHARING? 32% 32% These findings are echoed in a wider global study, also carried out by Cushman & Wakefield. The global survey, dominated by large multi-national corporations, show an on-going tension, and misalignment, between the aspirations of corporate real estate managers and their practical decision-making. The misalignment is due to that too often, attempts to advance corporate strategic goals must take a back seat to cost savings targets. However, without over-interpreting the results it suggests better alignment between real estate and wider business strategies in the Nordics compared to what is demonstrated globally. This, if that is the case, implies strength in ability to implement corporate strategies, also in occupancy decisions, yet still with room for improvement to be made. 29% Yes To some degree ABOUT THE SURVEY: 11% Yes, in several locations The 37 Nordic respondents were predominantly from large firms with above 200 employers operating from more than 5 office locations across several countries. Survey responses came from leaders in several business sectors, technology/media/ telecoms and finance/insurance representing the two largest sectors. The report can be found here: cw-red.dk/occupier-strategy-drivers-nordic-2017 No We are testing one/some location(s) 21% Not yet, but contemplating 15% Not planning to do so FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX 23 / 31

24 OCCUPIER MARKET - OFFICE LOWEST VACANCY RATE SINCE THE FINANCIAL CRISIS The positive trends in the Danish economy is continuing to influence the occupier market for offices. In Denmark the vacancy rate decreased to 7.40% in Q especially driven by CBD, where the vacancy rate is down 70 bp to a level of 6.10% according to Ejendomstorvet.dk. Office hotels and communities have become more popular for smaller Danish companies during the past years, due to the sharing of facilities in a multiuser property. However, the continuous growth in the Danish economy has resulted in a general increase in the workforce among these companies and they are growing out of their leases in office hotels and require their own office lease. This is one of the reasons vacancy rates are falling in all of Copenhagen. Furthermore, we have witnessed that an increasing number of international companies choose to place their offices in Copenhagen or Denmark in general. We expect to see the vacancy rate fall even further due to the lack of supply in CBD and will force the rent to increase. SIGNIFICANT LEASES STREET NAME LOCATION DATE SIZE (SQM) LANDLORD TENANT Hellerupvej 5 Hellerup 2017/Q3 836 Private Investor Tiger of Sweden Bregnerødvej 144 Birkerød 2017/Q2 2,345 Nectar Asset Management NKT Photonics A/S Rued Langgaards Vej 6 CPH S 2017/Q2 1,825 C.W. Obel Ejendomme CBRE A/S Strandvejen 70, 2. sal CPH Area 2017/Q2 1,356 C.W. Obel Ejendomme Weoffice ApS Stefansgade 9, 2. CPH N 2017/Q2 1,293 TDC A/S Københavns Akademi Njalsgade 21G, 8. og 9. CPH S 2017/Q2 908 ELF Ejendomme Deloitte Rued Langgards Vej 6 CPH S 2017/Q2 802 C.W. Obel Ejendomme Appstract Consulting Finsensvej 80, 1. Frederiksberg 2017/Q2 764 CEJ Ejendomsadministration CCDENT Aps Tuborg Boulevard 12 CPH Area 2017/Q2 1,100 PKA Stena Weco Stationsparken 37 CPH Area 2017/Q3 1,100 Fokus Asset Management Biogen Bygmestervej 10, 2. CPH NV 2017/Q2 1,000 Fokus Asset Management Designer & Friends Bygmestervej 10, 1. CPH NV 2017/Q2 800 Fokus Asset Management Danske Hospitalsklovne Rued Langgaards Vej 6 CPS S 2017/Q2 845 C.W. Obel Ejendomme F-Secure VACANCY RATES AND UNEMPLOYMENT Office vacancy rates compared to unemployment in Copenhagen 5.00% 12,00% 4.50% 10,00% 4.00% 3.50% 8,00% 3.00% 2.50% 6,00% 2.00% 4,00% 1.50% 1.00% 2,00% 0.50% 0.00% 0,00% Q Q Q Q Q Q Q Q Q2 Q Q Q4 Q Q Q2 Q Q Q4 Q Q Q2 Q Q Q Q Q Q Q Q Q Q Q1 Q Q Vacancy Vacancy rate rate Copenhagen Copenhagen City City Vacancy Vacancy rate rate Copenhagen Copenhagen Area area Unemployment Copenhagen Area Source: Statistics Denmark & Ejendomstorvet.dk Q3 Q Q Q1 Q Q Q PRIME RENT DKK/SQM SUBAREA Q Copenhagen City (CBD) 1,800 Copenhagen E & W 1,300 Frederiksberg 1,350 Harbour areas 1,850 South Harbour 1,300 Ørestad 1,400 Copenhagen N & NW 1,250 South and west of Copenhagen 1,000 North of Copenhagen 1,300 *Base rents ex. service charges 24 / 31 FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX

25 OCCUPIER MARKET - RETAIL NO OBSERVED CHANGE IN RENT LEVELS DUE TO LOW ACTIVITY The area for retail in Copenhagen is quite small geographically. Købmagergade and Strøget, the two primary pedestrian streets that meet in the junction of the square of Amagertorv, are subject to interest from many international retailers. However, some companies might find it beneficial to be located outside the traditional high streets, the so-called secondary area, which in Copenhagen is an area typically surrounding the streets of Grønnegade, Kronprinsensgade and Pilestræde. The aforementioned streets are neither long nor wide and neither are the rest of the streets in the area. Hence, the secondary area in Copenhagen is also geographically limited just as the high streets of Copenhagen are. SIGNIFICANT LEASES STREET NAME LOCATION DATE SIZE (SQM) NEW TENANT Ryesgade 16 Aarhus C 2017/Q3 438 Sephora Niels Hemmingsens Gade 21 CPH City 2017/Q2 N/A Aamanns 1921 Store Strandstræde 14 CPH City 2017/Q2 85 Le Labo Store Strandstræde 16 CPH City 2017/Q2 66 Winterspring Østerbrogade 79 CPH E 2017/Q2 N/A Madklubben PRIME RENT DKK/SQM - ZONE A SUBAREA Q Q CHANGE Strøget (incl. Vimmelskaftet) 23,500 23, % Strøget area - side streets 10,000 10, % Købmagergade 22,000 22, % Østerbrogade 4,000 4, % Gammel Kongevej 4,000 4, % Even though the number of available opportunities in this area can be counted on just one hand the rent level does not seem to change significantly as a change will require an observation, which just rarely appears as the leases do not often change hands. At RED we continuously working with exciting retail projects and after completing the development of five new stores in Store Strandstræde, we continue the expansion of the secondary area in Copenhagen by introducing the market to a brand new opportunity: BANK, which is the development of four retail spaces and two restaurants in the buildings formerly housing a local bank situated in the rear part of Postgaarden. VACANCY RATES AND CONSUMER CONFIDENCE Retail vacancy rates compared to consumer confidence in Copenhagen 5.00% 5,00% 4.50% 4,50% 4.00% 4,00% 3.50% 3,50% 3.00% 3,00% 2.50% 2,50% 2.00% 2,00% 1.50% 1,50% 1.00% 1,00% 0.50% 0,50% 0.00% 0,00% Q Q Q3 Q Q Q Q Q Q Q4 Q Q Q2 Q Q Q4 Q Q Q2 Q Q Q Q Q Q Q3 Q Q Q1 Q Q Q3 Q Q Q Q Q Q Q Q Q Q2 Q Q Source: Statistics Denmark & Ejendomsstorvet.dk Vacancy rate Copenhagen City Vacancy rate Copenhagen area Consumer confidence index FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX 25 / 31

26 FOOTFALL ANALYSIS LARGE FLUCTUATIONS IN FOOTFALL COUNTS OBSERVED IN Q2 The Copenhagen high streets have fluctuated quite a lot in footfall counts in Q compared to Q This can be seen in the change of pedestrians on Østergade, which is expected to be even higher when the construction on Kongens Nytorv is completed and the relocation of the main stairs at the Metro, which will force the pedestrians towards Strøget. 4. 4,400 Kultorvet ager Købm It is interesting to observe the stable footfall count on Frederiksberggade after the opening of JD Sports. However, due to the ongoing construction and development of the City Hall Square, we might first see a positive effect when the site is completed and the new metro line is in use. e With the opening of the high end retailer, Hermés, on the corner of Amagertorv and Læderstræde, it will be exciting to see what effect it will have on the footfall and if it will draw more pedestrians towards Strædet. gad The overall decrease on Købmagergade could be caused by both the terrible summer weather and the redevelopment of Postgaarden. COUNTING METHODOLOGY RED carries out the counts on Fridays at 4 pm with the purpose of registrering a development and conclude a level of footfall at different locations on Strøget and Købmagergade. The footfall is counted manually from both directions. Vimme e ad Nyg Gammeltorv 3. 5,200 e ad F 26 / 31 FOCUS sb rik e red MACROECONOMICS INVESTMENT MARKET Rådhuspladsen g erg OCCUPIER MARKET APPENDIX

27 FOOTFALL COUNTS IN Q AND Q THE MAP The map shows the counting points and the average footfall per hour the last 12 months. 5. 4, NO. STREET NAME Q Q CHANGE 1 2 Østergade 3,157 4,204 1,046 Amagertorv/Østergade 5,780 5, Frederiksberggade 5,154 5, Frederiksborggade/Købmagergade 5,248 4, Rundetårn 5,484 4, Købmagergade/Silkegade 5,199 4, Vimmelskaftet/Amagertorv 6,253 6, Købmagergade/Valkendorfsgade 3,845 5,148 1,303 9 Købmagergade/Løvstræde 5,120 4, Pilestræde/Kronprinsensgade 2,480 3, , , Kgs. Nytorv 5,100 ade 1. sterg Ø 4, ,300 Købm ager gade e gad Øster 2. ertorv Amag 7. 6,800 5,200 elskaftet AVERAGE FOOTFALL COUNT 8,000 6,000 4,000 2,000 0 Summer months Christmas shopping 2014 FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET 2015 Total average 2016 APPENDIX 27 / 31

28 TUBORG BOULEVARD 12 - HELLERUP In this modern and impressive office property at Tuborg Havn, Cushman & Wakefield RED has let out leases to Lundgrens, Nordic IT and Stena Weco. 28 / 31 FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX

29 APPENDIX - DANISH TRANSLATION 29 / 31

30 ENGLISH VERSION AT PAGE 6 UDGIVELSE III FOKUS STRØGEJENDOMME FORTSAT EFTERTRAGTEDE INVESTERINGSOBJEKTER Opmærksomheden falder stadig ofte på København, når udenlandske investorer med high street investeringer for øje ser efter nye investeringsmuligheder i Europa. På trods af, at vi i retail-segmentet i stigende grad ser, at investorerne også kigger udenfor København, er high street markedet i København fortsat driveren på retail-investeringsmarkedet i Danmark. Der er især 3 attraktive forhold, der gør, at udenlandske investorer dominerer strøgmarkedet i København, og det lader til, at trenden ikke blot er en midlertidig hype. OPTIMISMEN FORTSÆTTER PÅ HIGH STREET MARKEDET I løbet af de seneste år har high street transaktionerne i København tegnet sig for mellem 35% og 56% af transaktionsvolumen indenfor retail i Danmark. Af den foreløbige retailvolumen i 2017 (år til dato) udgør high-street transaktionerne i København 56%. Således fylder high street-segmentet i København stadig en stor del. Hos RED forventer vi fortsat optimisme på high street markedet. Ifølge Claus Bælum, Partner og Head of Capital Markets hos RED, skal årsagen blandt andet findes i positive danske makroøkonomiske forhold: Den stærke danske økonomi kombineret med stigende forbrugertillid og en forsat tilflytning til byen, spiller tilsammen en vigtig rolle for investeringslysten i de københavnske strøgejendomme. Strøggaderne bliver ikke større, men det gør oplandet. Den øgede interesse for butiksejendomme på de to primære handelsstrøg i København, Strøget og Købmagergade, ses især blandt udenlandske investorer. Men hvilke faktorer har drevet de udenlandske investorer til at gøre indtog på det københavnske strøgmarked? Dette kigger vi nærmere på i denne artikel. TRANSAKTIONSVOLUMEN HIGH STREET TRANSAKTIONERS ANDEL AF DEN SAMLEDE RETAIL-VOLUMEN 2,5 MIA KR. 64% 36% 1,6 MIA KR. 44% 56% 8,6 MIA KR. 42% 58% HIGH STREET TRANSAKTIONER DE UNDERLIGGENDE FAKTORER 3,6 MIA KR. 62% 38% 7,7 MIA KR. 58% 42% Alene inden for de seneste fem år er der blevet handlet for mere end 19,7 mia. kr. strøgejendomme, hvoraf 68% er købt af udenlandske investorer. Nu ser vi tilmed, at rene udenlandske transaktioner stiger markant, dvs. transaktioner hvor både køber og sælger er udenlandske. Af den foreløbige high street-volumen i 2017 (år til dato) udgør rene udenlandske transaktioner 85%. Til sammenligning så vi ingen rene udenlandske transaktioner i hverken 2012 eller 2013, imens vi i sammenlagt så, at 48% af high-street volumen bestod af rene udenlandske transaktioner. Der er efter vores mening især 3 faktorer, der gør, at udenlandske investorer dominerer strøgmarkedet i København: 4,5 MIA KR. 36% 64% 9 MIA KR ÅTD 56% 44% 5,0 MIA KR. 4% 96% 7,9 MIA KR. 35% 65% RESTERENDE ANDEL AF RETAIL TRANSAKTIONER 1. GUNSTIGE LÅNEFORHOLD Ikke overraskende er en af de væsentligste årsager den gode adgang til billig finansiering, som er fulgt i kølvandet på renteudviklingen. Det danske realkreditsystem tilbyder de laveste finansieringsomkostninger i Europa for de første 60% af købesummen, og de udenlandske investorer er oftest ejendomsfonde med et ønske om at geare deres investeringer. 2. STADIG HØJERE AFKAST PÅ KØBENHAVNSKE STRØGEJENDOMME IFT. ANDRE EUROPÆISKE STORBYER Et andet væsentligt forhold er, at afkastet på strøgejendomme i København stadig er højere i forhold til andre europæiske storbyer. En rapport udarbejdet af RED 2,8 MIA KR. 39% 61% DANSKE 3,9 MIA KR. HIGH STREET TRANSAKTIONSVOLUMEN - DANSKE INVESTORER VS. UDENLANDSKE INVESTORER 56% 44% UDENLANDSKE 2,2 MIA KR. 100% ÅTD 30 / 31 FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX

31 viser, at high street afkastet i København pt. er ca. 50 basispoint højere end eksempelvis i Paris og London. Dette kombineret med det danske realkreditsystem er medvirkende til et væsentligt højere afkast på den investerede kapital. Af grafen nedenfor fremgår det også, at der tidligere har været stor forskel på high street prime afkastet i København i forhold til Paris og London. I de senere år er denne forskel imidlertid blevet mindre i takt med, at strøgejendommene i København vurderes som meget sikre aktiver, på grund af lav genudlejningsrisiko og et meget likvidt og transparent transaktionsmarked. HIGH STREET TRANSAKTIONSVOLUMEN - INVESTORERS INVESTERINGSPROFIL 1,6 MIA KR. 38% 56% 6% ,6 MIA KR. 65% 14% 22% ,5 MIA KR. 22% 60% 18% ,0 MIA KR. 64% 36% ,8 MIA KR. 61% 29% 11% 2016 CORE VALUE ADD OPPORTUNISTISK 2,2 MIA KR. 64% 27% 9% 2017 ÅTD Desuden tyder det på, at flere udenlandske investorer i højere grad betragter København som en metropol med en voksende international betydning, hvilket også er med til at forklare hvorfor der er mindre forskel på high street prime afkastet i København i forhold til de europæiske storbyer: Med en voksende befolkning, voksende opland og meget attraktiv bykerne, som bliver mere og mere populær blandt turister, kunder og butikker, har København en stærk investeringsprofil i Hines øjne, siger Peter Epping, Managing Director og Fund Manager hos det globale ejendomsinvesteringsselskab Hines. 6,00% 5,00% 4,00% 3,00% 2,00% 1,00% PRIME NIY - HIGH STREET 0,00% KØBENHAVN PARIS LONDON 3. MULIGHED FOR VÆRDISKABELSE Flere internationale investorer kan ligeledes se yderst interessante muligheder for værdiskabelse i strøgmarkedet. Derfor er det københavnske strøgmarked præget af flere professionelle internationale investorer med både specifik retail-kompetence og erfaring fra andre storbyer i udvikling af strøgejendomme. Eksempelvis opkøbte det internationale investeringsselskab Avignon Capital Købmagergade 26 i 2014, som på det tidspunkt kunne betragtes som en opportunistisk investering. Avignon Capital har siden da øget værdien af Købmagergade 26 blandt andet i forbindelse med udviklingen af en ny stor stueetage i ejendommen, som blev færdig i 2016 og udlejet til det internationale tøjmærke Superdry. Siden overtagelsen er huslejen derved steget markant. STRØGETS UDVIKLING: FRA OPPORTU- NISTISK OG VALUE ADD TIL CORE I grafen ovenfor ses udviklingen indenfor strøghandler, herunder hvor stor en del, der er købt som core-investeringer, og hvor mange med udvikling for øje. Core-investeringer udgør nu en ganske stor andel af det samlede investeringsvolumen inden for high street-segmentet. Dette er en naturlig konsekvens af, at de udenlandske fonde sælger deres ejendomme videre efter endt værdiudvikling til andre fonde, som fokuserer mere på en core profil. Avignon Capitals salg af Købmagergade 26 til Hines i starten af året er et eksempel på netop dette. FORVENTNINGER Hos RED mener vi fortsat, at der er gode grunde til optimisme på high street markedet. Den danske økonomi er fortsat sund, de demografiske forhold er gunstige og de københavnske strøggader er de mest attraktive i Norden. For investorer med en nordisk high-street strategi er København det mest likvide marked og det marked med den største koncentration af internationale lejere. Derudover giver det danske realkreditsystem stadig mulighed for at opnå fornuftige afkast på egenkapitalen selv efter flere års faldende afkast på ejendommen. Rentefølsomheden er til stede, men denne kan investorerne delvist afdække ved at vælge en finansiering baseret på en lang rente. FOCUS MACROECONOMICS INVESTMENT MARKET OCCUPIER MARKET APPENDIX 31 / 31

32 TRY OUR NEW DYNAMIC ANALYSIS TOOL AT CW-RED.DK Cushman & Wakefield RED has throughout the years worked structured and intense to increase the transparency on the Danish commercial real estate market. We have therefor introduced a dynamic research tool on our website that allows you to perform your own analysis by using our underlying market data. Enjoy! CUSHMAN & WAKEFIELD RED RED@CW-RED.DK