Aviva Investors has sold a mixed-use building in Denmark that it acquired from Patrizia two years ago.
In January 2020, Aviva Investors and Public Sector Pension Investment Board (PSP Investments) announced the acquisition of the 24,500 square metres mixed-use retail, leisure and office asset situated in the centre of Copenhagen’s retail district. Patrizia invested EUR200m to buy Galleri K as a co-investment with a German scheme In September 2015.
Aviva Investors said since the acquisition in 2020, it has been able to complete approximately 10,000 square metres of office and retail lettings at Galleri K, bolstering occupancy rates from just 38 per cent to nearly 99 per cent.
Aviva Investors said today that the sale ”secures a substantial return” on the property ahead of schedule.
George Fraser-Harding, fund Manager at Aviva Investors, said Galleri K is an example of the asset manager’s ability to create value and lock in returns for its clients through sound active management and timely disposal.
”We originally acquired Galleri K in an off-market process where the vacancy risk appeared to have been misjudged. Despite a challenging letting environment, we have been able to achieve positive leasing momentum and deliver returns well ahead of the initial underwriting.
Source: realassets.ipe.com on the 16th of May 2022