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RENTAL PRESENTATION // NOVEMBER 2019

KØBMAGERGADE 7-11


CUSHMAN & WAKEFIELD | RED RED was founded in 2004 and currently has approx. 40 dedicated employees that are specialized within Capital Markets, Retail, Valuation and Research, Office Letting and Occupier Services. The clients are mainly large, proffessional investors on the Danish real estate market, public and institutional operators, private companies as well as funds.

our combined organisational competences consist of a strong community of dedicated, satisfied and competent employees and partners. Cushman & Wakefield is our international business partner which means that we continuously serves global clients in Denmark. Cushman & Wakefield is one of the three largest advisers within commercial real estate with more than 51,000 employees allocated on 400 offices in 71 countries.

Our goal is to deliver value-creating services with the highest possible professional quality in relation to the task. As professional advisers, we will meet and exceed customer expectations. We can do this because

OFFICE LETTING We engage with all parts of the Office Letting area. Our focus are primarily on Copenhagen CBD and our goal is always to advice our clients in the best possible way. Therefore, we are constantly updated within all relevant legal and economic areas. Our competences range widely. We asses the level of rent as well as terms, discuss the potential of the leases, prepare contracts, strategies for development and marketing, do the final negotiations with the tenant and finalizes the contract. We are able to deliver at highest level, because the Office Letting team have employees with great knowledge, many years of experience and a broad educational foundation. The team solve cases with professional competence, seriousness, dedication and always with the goal to have satisified clients.

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Over the past few years, Cushman & Wakefield | RED have leased offices of over 135,000 sq m i Greater Copenhagen to Novo Nordisk, Flying Tiger of Copenhagen, Peakon, Sirius Advokater, LĂŚrernes Pension, Huawei, Webhelp, Stena Weco, Scandic, Ascendis Pharma, Danske Bank among others. In 2013, 2014, 2016, 2017 and 2019, the Office Letting team won the Euromoney Awards' for Best Advisor for Agency & Letting. The Office Letting team consists of Anders Krogh, Bjarne Eilertsen, Kasper Stagis and Kristina Pedersen.


CLAUS BÆLUM Partner cb@cw-red.dk M: +45 40 82 30 82

ANDERS KROGH Head of Letting

BJARNE EILERTSEN Senior Associate

ak@cw-red.dk M: +45 25 15 80 02

be@cw-red.dk M: +45 60 16 84 56

KASPER STAGIS Associate

KRISTINA PEDERSEN Back Office

ksn@cw-red.dk M: +45 20 94 40 60

kbp@cw-red.dk M: +45 22 53 36 92

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WORKING METHOD AND SYSTEMATICS It will be our dedicated Office Letting team that will jointly solve the case. We are four experienced colleagues that only focuse on office letting with internal support from marketing and graphic designer etc. We have always focused on Central Copenhagen and the surrounding quarters. This secures are solid and local market knowledge to potential tenants, supply, pricing and trends. Many of our trusted rental properties have been rented out lately, like there are many final negotiations in process. This means that we will have the capacity and the manpower to initiate a personalized and dedicated hunt for tenants for Købmagergade 7-11. We always respond critically and constructively to new cases, so that we make sure to get the best possible start-up to attract the right tenants and thus have the shortest possible vacancy. A prospectus with all needed information will be produced. Floor plans with gross areas, possibilities of lease divisions, count of work spaces, visualisations and beautiful photos along with area discription, public transportation and parking facilities.

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Afterwards we combine the best possible tools in a marketing plan such as: • Monthly newsletter by e-mail for currently 1,200 recipients • SoMe with great stories • Direct Marketing • Advertising • Digital platforms • Local signage Status meetings and reporting with the landlord takes place after further agreement with fixed intervals and naturally on an ongoing basis in relation to concrete viewings and contract negotiations. We thus give the landlord a clear overview of potential tenants, statistics of internet advertisements, web page and SoMe. We have all necessary contract paradigms and are usually in charge of the negotiation with the tenant from beginning to end - in close dialogue with the landlord.


THE PROPERTIES

All three properties have Retail in ground floor - also Købmagergade 11 has Retail on 1st floor. In addition, the properties have that in common, that there are offices on all remaining floors and thus no residences.

A GATHERED DOMICILE? It is a possibilty to market a gathered domicile of 5,000 sq m. It is a very rarely opportunity so central in Copenhagen and we consider it to be one of many solutions. The most obvious advantage of one large tenant is typically the possibility of a longer non termination period for tenant and often also an acceptance of a higher rent level per square metre. Before this possibility is tested in the market, we recommend to wait for a potential re-establishment of the fire walls between the three properties.

For many years, one office tenant have expanded on this exact location. Therefore, wall penetrations have been made in the fire walls between all three properties in line with the tenant's increased need of space.

In addition to the gathered solution, we naturally see other solutions where we in the section below highlight the differencies, advantages and opportunities of the individual propertites.

STRATEGY The properties each have individual ownership. The total office area avaliable from the end of 2020 is approx. 5,000 sq m. This presentation focuses on how we see a solution for the rental of the offices.

For all of the areas, a "test-fit" must be prepared with indication of the potential number of work spaces.

Købmagergade 7-11 are three rather different properties with a very unique location in the best part of the city's central pedestrian zone and CBD. The quarter has become even more popular after the opening of Gammel Strand Metro station, only 200 metres from the properties. Furthermore, Nørreport Station, Denmarks busiest train station is approx. 700 metres from the properties.

It is our overall assessment that it will be advantageous to market the three properties gathered at one broker with respect of the differences of the properties. This will attract different types of tenants and give maximum flexibility at presentation and viewings to potential tenants. It is our assessment that the success rate will be as large as possible in this way. The alternative where the three properties "combat" each other will, after our opinion, not lead to the best and fastest solutions.

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2ND FLOOR

KØBMAGERGADE

KØBMAGERGADE 7 Office

Gross sq m

Access areas

Total

Stairs

Gross area

1st floor

137

18

155

24

179

2nd floor

137

18

155

24

179

3rd floor

137

18

155

20

175

4th floor

127

127

20

147

5th floor

97

29

126

5

131

635

83

718

93

Total Retail st. Grand total

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811 342 1153


FACTS - KØBMAGERGADE 7: • The property is listed as status 1 and was build in 1750 • Office area of 811 sq m divided on 5 floors from 131 sq m to 179 sq m • No elevator

Tenants in this segments are focusing on the monthly rent of the lease and will find this monthly rent attractive. Starting point of rent (examples):

TARGET GROUPS Smaller companies/advisers/headhunters/IT-development, that can benefit from a lease at one floor only. One company in the entire property divided on 5 small floors without elevator is not an obvious option. GROSS RENT ASSESSMENT DKK 1,650/sq m or approx. DKK 1,338,150/year. MARKETING The above value of the gross rent could be raised due to our idea to offer the areas floor by floor at a monthly rent of DKK 25,000 (rounded up to the same price for all floors). The price per work space are thereby typically smaller than at an office hotel. For the landlord it allows a gross rent on 5 floors at DKK 25,000 per month or DKK 1,500,000 per year corresponding to DKK 1,850/sq m.

2nd floor: 179 sq m * DKK 1,650/sq m = DKK 295,350/year or DKK 24,600/month. 5th floor: 131 sq m * DKK 1,650/sq m = DKK 209,600/year or DKK 18,013/month. RENTAL TERMS ETC. A shorter non termination period of, for example 2 years + 6 months' notice, should be offered if the leases are not refurbished for the individual tenants. However, toilets must be up to date and kitchenette/ dining area must be prepared on all floors. Main entrance in street level must be clearly visible with street number and with approved signage.

It has to be noticed that the 4th and 5th floor must be rented as one unit. Depending on the condition of the design of these floors, the rent should maybe be a bit lower on this floor.

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ELEV.

TRAPPE

1ST FLOOR

KØBMAGERGADE 9 CAFÉ AND

Office

RECEPTION

LOUNGE

KØBMAGERGADE

2ND FLOOR

Net sq m

Total

Stairs

Gross area

1st floor

568.5

568.5

50.1

618.6

1st floor

2.2

2.2

0

2.2

620.8

2nd floor

573.8

573.8

50.1

623.9

623.9

3rd floor

285.7

285.7

26.7

312.4

3rd floor

282

282

23.4

305.4

617.8

4th floor

483,8

483,8

50,1

533,9

533,9

5th floor

214.8

214.8

26.7

241.5

5th floor

87.9

87.9

19.1

107

2498.7

2498.7

246.2

2744.9

I alt Roof floor

569

Retail st. Grand total Basement, storage and technique Total

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Floor total

569 590 3903.9 888.9 4792.8

348.5

Exploited according to BBR


FACTS - KØBMAGERGADE 9: • The property was build in 1910. • Office area of 2,745 sq m divided on 5 floors from 348 sq m to 624 sq m. • Elevator • Large basement area (more than 800 sq m) with elevator access. TARGET GROUPS Could easily be an domicile for one company, not least because of the great canteen on 3rd floor and reception and meeting center on 1st floor. The relatively large floors also makes it attractive. However, the alternative is also obvious. A multi-user property with up to 7 tenants thanks to the 3 staircases and 2 elevators. The request is large and it is very rarely offered so centrally located in the city with shared canteen, meeting center and reception.

It is our assessment that the gross rent shall be in a range from DKK 1,700 to DKK 1,900. MARKETING Will as a starting point be offered as domicile, alternatively as multi-user property with shared reception, canteen and meeting center. RENTAL TERMS ETC. If the property is rented as a domicile, a 5 - 7 years non termination period + 6 months' notice can be expected. However, it must be expected that there will be some need of individual adaptment/refurbishment to make larger office areas to ensure an effective use of the areas. Today there is many smaller offices, which it not demanded by many tenants.

GROSS RENT ASSESSMENT

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2ND FLOOR

KØBMAGERGADE

KØBMAGERGADE 11 Office

Net sq m

Access areas

Rooftop terrace

Shared

Gross area

2nd floor

348

42

0

0

390

3rd floor

360

21

0

0

381

4th floor Total

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342

21

0

0

363

1050

84

157

116

1407

Retail st. + 1. sal

1543

Grand total

2950


FACTS - KØBMAGERGADE 11: • The property was build in 1850. • Office area of approx. 1,200 sq m divided on 3 floors with floors from 380 sq m to 410 sq m. • Elevator. • The 1st floor is currently retail in connection to the ground floor. TARGET GROUPS Will be an abvious company domicile and also has the size to fit some of the smaller office hotel operators.

RENTAL TERMS ETC. If the property is rented as a domicile, a non termination period of 5 - 7 years + 6 months' notice can be expected. There should be made a creative effort to make the patio attractive and cosy, since all employees and guests must pass the courtyard to get access to the main staircase and elevator. The front door to Købmagergade should be made less anonymous. Canteen facilities must also be considered in the context with the patio.

GROSS RENT ASSESSMENT It is out assessment that the gross rent shall be in a range from DKK 1,800 to DKK 2,000. MARKETING Should as a starting point be offered as a gathered unit. The possibility of office hotel is secundary and are very dependent on the solidity of the office hotel operator.

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MARKET RENT To access the market rent we have used the rental levels from the currently offered leases in the area along with recently rented out leases from our internal database. There are many leases to compare with, both currently offered and leases that have recently been rented out. To access the rent we make a market analysis that includes all relevant leases that are offered and all leases that have recently been rented out within a radius of approx. 1 kilometre. Currently we see an average gross rent of DKK 1,730/sq m with a rather large variation from DKK 1,082 to DKK 2,061. The final rent however, will first and foremost be based on own experiences and our professional accessment of the market development. CURRENTLY OFFERED LEASES Address

Yearly net rent yearly operating per sq m expenses per sq m

Yearly gross rent per sq m

Amagertorv 14, 1160 København K

295

1.350

-

1.350

Amagertorv 19, 1160 København K

1.947

1.815

-

1.815

Valkendorfsgade 13, 1151 København K

1.697

1.424

637

2.061

169

1.695

337

2.032

Læderstræde 9, 2., 1201 København K Sværtegade 3, 1118 København K

121

1.395

150

1.545

2.623

1.700

400

2.100

Niels Hemmingsens Gade 9, 1., 1153 København K

375

1.538

316

1.854

Østergade 13, 1100 København K

360

1.395

367

1.762

Hovedvagtsgade 6, 1103 København K

227

1.419

126

1.545

Niels Hemmingsens Gade 12, 1153 København K (domicil)

Bremerholm 31, 1069 København K

1.121

2.050

-

2.050

155

1.435

413

1.848

Gammeltorv 14, 1457 København K

457

1.250

300

1.550

Frederiksholms Kanal 4, 1220 København K

336

1.295

324

1.619

Nygade 7, 1164 København K

Frederiksberggade 28, 2., 1459 København K

398

1.350

-

1.350

Mikkel Bryggers Gade 2-4, 1460 København K

1.620

1.604

200

1.804

Frederiksborggade 15, 1360 København K

606

1.700

269

1.969

Ny Kongensgade 9B, 1472 København K

344

1.692

158

1.850

1.817

1.474

69

1.543

Havnegade 29, 1058 København K (domicil) St. Kongensgade 59A, 1264 København K Nørre Søgade 35, 1370 København K (domicil) Average

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Area

916

825

257

1.082

4.308

1.612

254

1.866

1.501

229

1.730


RECENTLY RENTED LEASES Address Store Kirkestræde 3, 1073 København K

Area

Yearly net rent per sq m

yearly operating expenses per sq m

Yearly gross rent per sq m

111

1.475

160

1.635

Pilestræde 4, 1112 København K

125

1.700

-

1.700

Østergade 36, 1., 1100 København K

431

1.375

-

1.375

504

1.795

290

2.085

1.612

1.750

-

1.750

Gammel Mønt 4, 4.,. 1117 København K Bremerholmen 4, 1069 København K Amagertorv 24, 3., 1160 København K

536

989

764

1.753

Købmagergade 54, 1150 København K

200

1.595

-

1.595

Ny Adelgade 5, 2., 1104 København K

136

1.495

-

1.495

Vognmagergade 7, 1120 København K

707

1.600

305

1.905

Sjæleboderne 2, 1., 1123 København K

351

1.450

222

1.672

Gothersgade 12, 1., 1123 København K

429

1.650

200

1.850

Frederiksborggade 5, 1360 København K

965

1.510

403

1.913

Frederiksberggade 11, 1459 København K

1.607

1.454

363

1.817

Niels Juels Gade 9-13, 1061 København K

6.082

1.750

301

2.051

Bryghusgade 8, 1473 København K Average

156

2.500

-

2.500

1.606

201

1.806

FEE In addition to a small case-setting fee of DKK 6,000, our fee will first fall upon signing of leases and correspond to 15 % of the yearly net rent + VAT. Photos, visualisations, signage, advertisement, direct mails etc. will be agreed-upon specifically in a marketing plan where all expences are budgetet and are paid on an ongoing basis by the landlord.

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METRO

PARKING GARAGE

PARKING GARAGE

PARKING GARAGE

METRO

METRO Metro at Gammel Strand and Kgs. Nytorv

BUSSES Buslines outside the main entrance

PARKING 3 parking garages a few minutes walk from the property

BICYCLE Central location

WALKING DISTANCE 7 minutes to Nørreport 5 minutes to Christiansborg

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MARKETING Since the leases have very different looks, we recommend the following initiatives. Preparation of visualitions, design suggestions and mood boards to give potential tenants the best overview and a nice first hand impression of the possibilites. It is crucial that the visualisations, mood boards etc. can lift the prospectus, advertisements and online presentations to the highest level. Pictures of restaurants and cafes in the surrounding areas will actively be used in the marketing material. In order to make as much attention as possible to the vacant areas, there will be put up signage on the facade towards Købmagergade. Exclusively designed Direct Mail with photos, visualisations and further presentation material will be produced and send by mail to a chosen target group of larger companies that are obvious potential tenants and tenant advisors that will be invited to view the property. The sending of Direct Mail should be timed with start-up of advertisement, so that the possibility of recognition are exploited optimally.

few leases when looking at the larger units. Therefore, it is our recommendation to offer the leases for rent in two stages, where we will start by looking after one to two domicile/anchor tenants. UNIQUE SELLING POINTS Købmagergade 9 and 11 are obvious as domicile properties where the competition from other properties will be limited. Many companies today wishes to attract young and qualified labor which are often found close to Copenhagen. Therefore a combination of a centrally placed lease and the opportunity of great, large offices are an attractive quality. The marketing should therefore focus at: • Possibility of open-plan offices with great lighting • Ventilation and cooling in nr. 11 • City leases, easy to access by bike and close to the Metro • Balconies and outdoor areas • Many staircases, elevators and large canteen in nr. 9

The demand of leases from 500 sq m - 1,500 sq m in Copenhagen is large - especially in Central Copenhagen. However, it is very rarely that there is possibility of a well-located lease of + 2,500 sq m. The are a large offer of smaller leases in Central Copenhagen, but only

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Start-up - Q1 2020

RENTAL AND MARKETING MATERIAL ARE PREPARED

Visualisations Furnishing plan Content Marketing Strategi Prospectus Direct Mail Property portals Newsletter

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Phase 1 - End of Q1 / Beginning of Q2 2020

Phase 2

DOMICILE / LARGER ANCHOR TENANT

MULTI-USER / FLOOR WISE

remarketing

remarketing

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TRACK RECORD

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FREDERIKSBERGGADE 11 Beautiful domicile from the 18th century located in the centre of Copenhagen near RĂĽdhuspladsen. Cushman & Wakefield | RED leased 1.607 sqm. to the fast growing softwarecompany Peakon.

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SKT. PETRI PASSAGE An architectural and historical gem - located in the centre of Copenhagen. Cushman & Wakefield | RED has let out 1,335 sq m to Heimstaden NPM A/S

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STRANDGADE 71-73 Prominent and modern office of 3,792 sqm dating back to 1791 and located on Christianshavn. The property has a fantastic inflow of light from the large windows and it appears newly and fully refurbished. Cushman & Wakefield | RED has let the tenancy to Zebra A/S.

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PIER47 Domicile of 20,000 sqm. located directy to the harbourfront Langelinie. Cushman & Wakefield | RED has assited ATP-Ejendomme in developing the property and is now leased to Danmarks Nationalbank.

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HOLMENS KANAL 9 On one of the most sought-after locations in Copenhagen, close to Kongens Nytorv you find this property with beautiful office premises full of soul and historic details. Cushman & Wakefield | RED has let 9,037 sqm office to the Danish Defence Command.

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FREDERIKSBORGGADE 5 Well-located property on Strøget, whare Cushman & Wakefield | RED has assisted with the rental of office and retail. Co-working Ordnung is the prime tenant for the officespace, and Vaipiano has leased the retail.

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TUBORG BOULEVARD 12 One of Tuborg Harbor's most attractive properties welcomes the law firm Lundgrens, who has let approx. 4,000 sqm., shipping company Stena Weco who has let approx. 1,200 sqm., IT company Nordic IT, who has let approx. 450 sqm. and Ascendis Pharma who has let 7,399 sqm.

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CAPITAL MARKETS OFFICE LETTING VALUATION & RESEARCH Amaliegade 3, 5th floor, 1256 DK-København K T: +45 33 13 13 99

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