Swiss Finance & Property Group AG participates in a Danish real estate asset manager
Swiss Finance & Property Ltd (SFP) and its local partners have together successfully completed their first transaction in Denmark. A portfolio of six properties in central locations in Copenhagen with a market value of EUR 80 million was acquired through the newly established limited company VIGA RE ApS (VIGA RE). In the medium term, it is intended to expand the portfolio with similar properties in urban areas.
- Swiss Finance & Property Group AG participates in VIGA RE Management ApS, a real estate asset manager located in Copenhagen
- VIGA RE ApS has acquired a property portfolio in Copenhagen for EUR 80 million
- Swiss Finance & Property Ltd acted as co-arranger and placement agent in the transaction
Stake and transaction details
As co-arranger and placement agent, SFP has acquired six centrally located properties in attractive locations in Copenhagen in conjunction with the Danish investment company VIGA RE. Swiss Finance & Property Group AG (SFPG) holds a stake in the management company VIGA RE Management ApS (VIGA RE Management). In Niels Heering, Chairman of the Board of Directors of VIGA RE Management, and Kristian Vinther, CEO of VIGA RE Management, SFP has two very experienced and well connected local real estate experts as partners. "We're delighted to have successfully completed our first transaction in Denmark with VIGA RE and we've also created a good platform for further expansion abroad with VIGA RE Management", said Hans-Peter Bauer, Chairman of the Board of Directors of SFPG.
The portfolio has an overall value of EUR 80 million, split between 88% residential and 12% commercial. Over 30 investors have invested in VIGA RE. The initial unlevered return is approx. 3.6% and the annual distribution is estimated at approx. 4.0%.
Market situation
The property market in Denmark, particularly Copenhagen, enjoys an excellent reputation: it is transparent, stable and is regarded internationally as a safe haven. "There is currently excess demand for Danish real estate, particularly in urban areas. Domestic and foreign institutional investors have a very keen interest in well valued property investments, as they only achieve very low yields on bonds and have to take on too much risk with equities. We are creating a sustainable and secure investment for private and institutional investors through this transaction", said Kristian Vinther, CEO of VIGA RE Management.
Outlook
The aim is to keep on expanding the acquired portfolio in the next five years to EUR 1 billion and carry out an IPO in the long term or sell to an institutional investor.
Contact
Head Corporate Finance & Capital Markets