The Savills Blog

German private equity fund expands its Danish portfolio with new office hub in Køge

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The German private equity fund Quadoro Investment has acquired 9,200 square metres of office space in Køge Business Park, Køge's new modern office hub.

Anders Bengtsson and Kenneth Hansen have acted as advisers to the seller in connection with the transaction, which was in the three-digit million range. The transaction supports the trend that foreign capital is increasingly allocated in the country's growth towns. Køge is an excellent example of a provincial town that over time has transformed itself into a regional hub for future growth and business development.

More potential buyers
Køge Business Park comprises more than 9,000 square metres, spread across three towers that surround Køge Stadium. Two of the towers were completed in 2019/2020 and today boast major anchor tenants such as the bank Nordea, real estate agent Danbolig and land surveyors Landinspektørfirmaet LE34. The third tower is under construction and scheduled for completion in mid-2022. The business park was offered off-market to a select group of investors, and several potential buyers came forward.

Presently and in the coming years massive investments are made in Køge Municipality, including the construction of the new super hospital, the port area, and the logistics cluster Skandinavisk Transport Center, which is one of the fastest growing business areas in Northern Europe. These investments are expected to create thousands of jobs and attract a wide range of businesses in and around Køge.

Growth cities in the spotlight
We are witnessing an intensifying movement where the international investors broaden their geographical search. Some years ago, international demand for investment properties was primarily focused on Copenhagen and the other major cities in the country, but according to Anders Bengtsson, there are more and more cases involving properties in the larger regional growth cities.

It is with out a doubt a positive development that Danish growth cities are considered an option by international investors

Anders Bengtsson, partner 

However, he emphasises that this is not because investor preferences have changed.

- Copenhagen remains attractive and popular, but for investors there is excellent risk diversification in branching out into several local markets. In addition, the yields are typically more favourable than in central Copenhagen, and the supply is significantly larger," says Anders Bengtsson. 

Shared resources
The successful process is a result of close cooperation and a strong setup between us and seller especially. The combination of local presence and international reach enabled a broader field of potential investors. In addition to our firm, Lundgrens and Ernst & Young acted as advisers on the seller side, while Nreim and Plesner acted as advisers on the buyer side. 

According to Kenneth Hansen, the sale confirms that the company as a whole ensures their clients receive local and highly qualified advice by, i.a., drawing on each other's strengths and advantages, and Anders Bengtsson agrees. 

- We were commissioned as the seller's adviser partly because of our extensive experience with advising on similar cases. Via our international network we established the dialogue with the buyer. The process required our joint efforts, concludes Anders Bengtsson.

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