EXECUTIVE SUMMARY HIGHEST VOLUME EVER
AN INSATIABLE DEMAND FOR LOGISTICS
the total volume in 2021, which is the lowest
Although covid-19 continued to lead to
PROPERTIES
share ever.
uncertainties, the transaction volume in 2021
However, with a growth of 74% in trans
reached DKK 120.4bn (
figure 1). This is the
action volume, the logistics segment again
TWO TRANSACTIONS SAVED THE
all-time highest volume in the Danish market
caught up with the office segment in 2021.
HOTEL SEGMENT
and provides evidence of both Danish and
Despite the record-high investment a ctivity
With their purchase of hotel Skt. Petri and
foreign investors having had a very large
in the logistics segment, the market was
Comfort Hotel Vesterbro, at a total price of
capital placement need as well as a great
characterised by the fact that there only
DKK 1.7bn, Starwood Capital, showed that
confidence in the Danish commercial real
was a limited supply of m odern well-
when the right assets are offered on the
estate market.
located logistics properties. This resulted in
market, there still is investor demand for
an unsaturated investor demand that led to
hotel properties. The completion of these
decreasing yield requirements.
two transactions was the primary reason
However, the market in 2021 once again showed that when there are uncertainties in
why the transaction volume in the hotel seg-
the market, investors are primarily demand-
THE RETAIL SEGMENT FELL BEHIND
ing the safest assets on the safest locations.
In 2021, investors in the retail market contin-
ment reached DKK 2.5bn in 2021.
Therefore, we witnessed a market with sig-
ued to be reluctant to invest in high street
2022 WILL BE MORE CALM
nificant differences in investment activity
properties. Therefore, the investment activ-
Although investors still have a large invest-
across the segments.
ity in the retail segment was primarily driven
ment need, we expect the investment activ-
by the Danish investors completing a large
ity in 2022 to be slowed by the fact that it
EVERYONE WANTS TO INVEST IN
number of transactions with smaller retail
will be difficult for the investors to find qual-
RESIDENTIAL PROPERTIES
properties and by the foreign investors
ity products to cover their high demand
In 2021, the residential market was charac-
investing in a number of assets with long
for assets in both the residential, office and
terised by an insatiable demand for more
and safe cash flows (grocery stores, big-box
logistics segments. Therefore, we expect a
or less all types of residential assets, an
properties and shopping centres). However,
more subdued development in the investors’
increasing rent level and decreasing yield
with a transaction volume of DKK 7.4bn,
yield requirements and a lower but still high
requirements. This resulted in a high invest-
the retail segment only accounted for 6% of
investment activity.
ment activity throughout Denmark and a transaction volume of DKK 65.8bn. With a share of 55% of the total volume, the residential segment was once again the largest property segment. DANISH CAPITAL DOMINATED Figure 1: Transaction volume 2021
THE OFFICE MARKET In the office market, the foreign investors’ activity, in particular, was slowed down by the fact that there was a limited supply of prime office properties located in Copenhagen.
VOLUME IN TOTAL
120
However, the completion of the all-time largest office transaction in Denmark, which was completed when an investor consortium bought Ørsted’s domicile for almost DKK 2.5 bn contributed to a s ignificant
BN DKK
growth in the Danish investors’ activity. Therefore, the transaction volume in the office segment reached DKK 18.4bn and a share of 15% of the total volume, which was sufficient for the office segment to maintain its position as the second-largest property segment.
4 | RED – Danish Investment Atlas 2022
Source: ReData
Danish 54% Foreign 46%