Research Erhverv Poul Erik Bech

Market UPDATE f a l l

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edc Market update f a l l

Contact us: Robert Neble Larsen CEO Tel: +45 33 30 10 54 Mail: rnl@edc.dk Copenhagen: Investment Department: Jørgen Jørgensen Senior Director, HD, MRICS Tel: +45 33 30 10 25 Mail: jjo@edc.dk Leasing Department: Bjarne Bering Regional Director, Chartered Surveyor, MDE, MRICS Tel: +45 33 30 10 20 Mail: bba@edc.dk

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Remarks for our estimates: The valuation of a property depends on various property specific attributes, including, but not limited to, the lease conditions, the tenant’s credit rating and the property’s condition. When valuing a property, the estimates should not be relied upon without seeking qualified, professional advice. However, the estimates can serve as useful input in the valuation process. Any reproduction of data in this report should be credited to EDC Erhverv Poul Erik Bech. Whilst data and estimates have been rigorously checked, EDC Erhverv Poul Erik Bech can take no responsibility for any inaccuracy within this report. Estimates and forecasts of rents and yields are as of 1 October 2013. Estimates are subject to change.

YIELDS, MARKET RENTS AND FORECASTS: Location: Yield and market rent estimates covers properties with prime, secondary and tertiary location.

Aarhus:

Facility Class: Location aside, our estimates are based upon a segmentation of property facility classes; facility class A, B and C, where class A is the best facility class. Various variables for each property type have been taken into consideration with regards to determine the facility classes, such as: size, floor plan structure, year of construction, lifts, climate control, cabling infrastructure, staff facilities, customer facilities, parking facilities, building energy rating, ceiling height, general accessibility, general condition of the property, etc. A property with prime location and class A facilities has the best possible location in an area, the highest standard when it comes to facilities, is modern and ready to move into. This type of property will typically be traded at the lowest yield for the area, have the highest market rent and have a short reletting process. Naturally, yield and market rent estimates are subject to certain deviations depending on the exact location and property specific facilities.

Søren Leth Pedersen Regional Director, Partner, MSc. (f), Chartered Surveyor, MDE Tel: +45 58 58 78 76 Mail: slp@edc.dk

Yield definition: All yields are net initial yields and is defined as the annualised rent generated by the property, after the deduction of estimated annual irrecoverable property outgoings, expressed as a percentage of the property valuation (property valuation is adjusted for the value of rental deposits and prepaid rent). For comparison purposes it is assumed that all properties are fully let at market-conform conditions.

International relations: Helle Nielsen Ziersen Partner, KAM, Chartered Surveyor, MDE, MRICS Tel: +45 33 30 10 17 Mail: hni@edc.dk

Aalborg: Frank Jensen Regional Director, Partner, CBA Tel: +45 58 58 75 72 Mail: frje@edc.dk Kolding: Børge S Mensel Director, Chartered Surveyor, MDE Tel: +45 76 33 80 17 Mail: bsm@edc.dk poulerikbech.dk/research

Forecasts Increasing Stable

Market rent estimates: All rents are headline rents, in other words the contracted gross rent receivable which becomes payable after any tenant incentives have expired. Market rent estimates are expressed in € / sq m / year. Figures have been rounded when converting from DKK (Danish Kroner) to €. It is assumed that all properties are let at market-conform conditions. Forecasts: All forecasts reflect our expectations for the development over the next 3 to 6 months. Residential rental properties: In this report estimates are included for “Newer residential rental properties” and “Older residential rental properties”. In Denmark residential rental levels cannot be determined freely and is subject to far reaching rent control. The major difference between the before mentioned types of residential rental property is that “Older residential rental properties” are regulated by the provisions in the Danish Rent Act (Lejeloven) and the Housing Regulation Act (Boligreguleringsloven) concerning cost driven rental levels. “Newer residential rental properties” taken in to use no earlier than 1 January 1992 are subject to the rules concerning free market rent, pursuant to the Housing Regulation Act § 15 A and others.

DATA FOR VACANT COMMERCIAL SPACE ( VACANCY RATE) Source: Oline ED-Statistikken (Oline-ED Statistics) as of 1 October 2013. For more info we refer to www.oline.dk/info/statistik. The forecasts of the vacancy rates have been made by EDC Erhverv Poul Erik Bech and reflect our expectations for the development the next 3 to 6 months.

Decreasing

EDC Research - Fall 2013 - page 2

edc Market update

Regions of Denmark and selected market areas

Capital Region of Denmark Region Zealand Aalborg

Southern Denmark Region Central Jutland Region Region North Jutland

Aarhus

Vejle

Kolding

Triangle Area

Fredericia

Copenhagen

EDC Research - Fall 2013 - page 3

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Office Yield in %, yearly market rent in â‚Ź / sq m and forecast for the next 3-6 months Facility class A Copenhagen

Facility class B

Facility class C

Facility class A

Facility class B

Facility class C

Yearly market rent in â‚Ź / sq m

Yield in %

Prime

5.00

5.50

6.00

230

175

150

Secondary

5.25

5.75

6.25

175

135

115

Tertiary

6.25

6.75

7.25

145

115

Aarhus Prime

5.50

5.75

6.25

185

145

120

Secondary

6.00

6.50

7.25

150

115

Tertiary

6.50

7.00

8.00

115

Aalborg Prime

6.50

7.00

7.50

135

125

105

Secondary

6.75

7.25

7.75

125

110

Tertiary

7.25

7.75

8.25

110

Triangle area Prime

6.50

6.75

7.00

150

105

Secondary

6.75

7.25

7.50

125

Tertiary

8.00

9.00

10.00

Source: EDC Erhverv Poul Erik Bech. Data as of 1 October 2013. Forecasts: All forecasts reflect our expectations for the development over the next 3 to 6 months.

Vacant office space in sq m, in % of building stock and forecast for the next 3-6 months Vacancy sq m Central Copenhagen

As % of building stock

Change % QoQ

Change % YoY

538,900

9.3%

0.1%

0.2%

East Jutland (including Aarhus)

414,700

13.8%

0.6%

North Jutland Region (Including Aalborg)

129,000

6.7%

0.8%

0.4%

South Jutland (including the Triangle Area)

218,900

9.5%

0.5%

0.2%

Forecast

Source: Oline ED-Statistikken (Oline ED-statistics), data as of 1 October 2013. Changes quarter on quarter and year on year. Forecasts: All forecasts reflect our expectations for the development over the next 3 to 6 months.

EDC Research - Fall 2013 - page 4

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Vacant office space in sq m, in % of building stock and forecast for the next 3-6 months 16% 414,700 sq m

14% 12% 10%

218,900 sq m

538,900 sq m

8% 129,000 sq m 6% 4% 2% 0% Central Copenhagen

Central Copenhagen

East Jutland East Jutland (including Aarhus)

North Jutland Region

(including Aarhus)

South Jutland

North Jutland Region (including South (Including Aalborg) theJutland Triangle Area) (Including Aalborg) (including the Triangle Area)

Source: Vacancy data from Oline ED-Statistikken (Oline ED-statistics). Data as of 1 October 2013 . Forecasts: EDC Erhverv Poul Erik Bech. All forecasts reflect our expectations for the development over the next 3 to 6 months.

Key vacancy figures from Oline ED-Statistikken (Oline ED-statistics) Office

Building stock

Vacancy sq m

As % of building stock

Change in % QoQ

300

9.3%

0.1%

401,400

-7,200

11.0%

-0.2%

167,100

-15,300

10.6%

-1.0%

Central Copenhagen

5,824,100

538,900

Copenhagen area

3,652,400

North Zealand

1,570,500

Bornholm Capital Region of Denmark East Zealand

Change sq m QoQ

114,200

3,700

300

2.8%

0.2%

11,161,100

1,111,000

-22,100

10.0%

-0.2%

672,900

51,300

2,500

7.2%

0.4%

West- and South Zealand

1,549,200

86,600

4,300

5.6%

0.3%

Region Zealand

2,222,000

137,900

6,800

6.2%

0.3%

Funen

1,477,800

154,800

-3,500

10.5%

-0.2%

South Jutland

2,304,300

218,900

10,600

9.5%

0.5%

Southern Denmark Region

3,782,100

373,800

7,100

9.9%

0.2%

East Jutland

3,008,600

414,700

17,900

13.8%

0.6%

West Jutland

1,367,800

80,800

-2,700

5.9%

-0.2%

Central Jutland Region

4,376,400

495,500

15,200

11.3%

0.3%

North Jutland

1,918,000

129,000

15,100

6.7%

0.8%

Region North Jutland

1,918,000

129,000

15,100

6.7%

0.8%

23,459,700

2,247,100

21,900

9.6%

0.1%

Denmark, total

Source: Oline ED-Statistikken (Oline ED-statistics), data as of 1 October 2013. "% of building stock" is the proportion of empty space in sq m relative to the total building stock.

EDC Research - Fall 2013 - page 5

edc Market update O f f ice

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201

Copenhagen, location segmentation for offices 18

E47

3 20

Hellerup Gentofte

Gladsaxe

Tuborg Harbour Soborg

Morkhoj

16 O4

Bispebjerg Nordhavn

Husum Utterslev

Outer Osterbro O2

Norrebro

Amerika Square

Central Osterbro

Vanlose

Rodovre

CPH City

Frederiksberg 156 O2

Valby

Vesterbro

Kalvebod Brygge

Brondbyoster E47

Havnefront South

Sundbyvester

151 Hvidovre

Orestad North

Vigerslev

Sydhavn

Kastrup

Avedore

Orestad City

E20

Orestad South

E20

Taarnby

CPH airport

1 km

Prime locations

Secondary locations

Tertiary locations

Yield in % and forecast for the next 3-6 months Location

Facility class A

Facility class B

Facility class C

Prime

5.00

5.50

6.00

Secondary

5.25

5.75

6.25

Tertiary

6.25

6.75

7.25

Yearly market rent in € / sq m and forecast for the next 3-6 months Location Prime

Facility class A 230

Facility class B

Facility class C

175

150

Secondary

175

135

115

Tertiary

145

115

•

Trains

•

Metro

The map for office properties in Copenhagen illustrates a location segmentation in prime, secondary and tertiary locations, where the prime area typically has the best locations for office property in Copenhagen. The location segmentation has been made by EDC Erhverv Poul Erik Bech. The location segmentation can change over time. The segmentation is our perception of general location segmentation and should not be perceived as a definitive segmentation of the best, good and below average locations.

EDC Research - Fall 2013 - page 6

Lisbjerg 15

Kvottrup

Sabro

edc Market update

19 20

Faarup E45

O f f ice

Kasted

Geding

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Vejby

Skejby

Aarhus, location segmentation for offices 47 Brendstrup

Risskov

180

Yderup

Tilst

True

Lyngby Gellerup

Hasle

O1 Brabrand

195

Aabyhoj

Aarslev Aaby

Aarhus

Aarslev Mark

Marselisborg

501

Stavtrup

Ormslev Stationsby Ormslev

abo

170 2

Lemming Viby

1 km

Holme Prime locations

Secondary locations

Tertiary locations

Hasselager

Kolt Bering

Bjostrup

451

•

Trains

•

Metro

Slet

Kattrup

Yield in % and forecast for the next 3-6 months Location

Horning

Jegstrup

Facility class A

Facility class B

Prime

5.50

5.75

Secondary

6.00

6.50

Tertiary

6.50 Overballe

7.00

Facility class C 6.25 Tranbjerg 7.25

8.00

Osterby

Yearly market rent in € / sq m and forecast for the next 3-6 months Location

Facility class A

Facility class B

Facility class C

Prime

185

145

120

Secondary

150

115

Tertiary

115

The map for office properties in Aarhus Skaade illustrates a location segmentation in prime, secondary and tertiary locations, where the prime area typically hasStorhoj the best locations for office property in Aarhus. The location segmentation has been made by EDC Erhverv HorretPoul Erik Bech. The location segmentation can change over time. The segmentation is our perception of a general location segmentation and should not be perceived as a definitive segmentation of the best, good and below average locations.

EDC Research - Fall 2013 - page 7

edc Market update R et a i l

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Retail Yield in %, yearly market rent in â‚Ź / sq m and forecast for the next 3-6 months Facility class A Copenhagen

Facility class B

Facility class C

Facility class A

Facility class B

Facility class C

Yearly market rent in â‚Ź / sq m

Yield in %

Prime

5.00

5.25

5.50

2,280

1,880

1,610

Secondary

5.50

5.75

6.25

470

340

270

Tertiary

6.00

6.50

7.00

150

125

105

Aarhus Prime

5.00

5.25

5.50

740

605

470

Secondary

5.25

5.50

6.00

540

470

340

Tertiary

6.00

6.50

7.00

270

215

165

Aalborg Prime

5.25

5.75

6.25

570

470

340

Secondary

6.25

6.50

7.00

190

155

125

Tertiary

7.00

7.25

7.75

110

Triangle area Prime

5.75

6.00

6.25

420

325

190

Secondary

6.50

6.75

7.00

230

150

125

Tertiary

7.25

7.75

8.25

110

Source: EDC Erhverv Poul Erik Bech. Data as of 1 October 2013. Forecasts: All forecasts reflect our expectations for the development over the next 3 to 6 months.

Vacant retail space in sq m, in % of building stock and forecast for the next 3-6 months Vacancy sq m Central Copenhagen

As % of building stock

Change % QoQ

Change % YoY

40,100

3.1%

0.0%

-0.2%

East Jutland (including Aarhus)

113,600

5.7%

-0.1%

-1.4%

North Jutland Region (Including Aalborg)

119,400

8.9%

0.2%

1.0%

South Jutland (including the Triangle Area)

149,400

8.9%

0.2%

-1.2%

Forecast

EDC Research - Fall 2013 - page 8

edc Market update R et a i l

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Vacant retail space in sq m, in % of building stock and forecast for the next 3-6 months 10% 119,400 sq m

149,400 sq m

North Jutland Region

South Jutland

9% 8% 7% 113,600 sq m

6% 5% 4% 40,100 sq m 3% 2% 1% 0% Central Copenhagen

Central Copenhagen

East Jutland East Jutland (including Aarhus)

(including Aarhus)

North Jutland Region South Jutland (Including Aalborg) (including the Triangle Area) (Including Aalborg) (including the Triangle Area)

Source: Vacancy data from Oline ED-Statistikken (Oline ED-statistics). Data as of 1 October 2013. Forecasts: EDC Erhverv Poul Erik Bech. All forecasts reflect our expectations for the development over the next 3 to 6 months.

Key vacancy figures from Oline ED-Statistikken (Oline ED-statistics) Retail Central Copenhagen Copenhagen area North Zealand Bornholm Capital Region of Denmark East Zealand

Building stock

As % of building stock

Change in % QoQ

1,289,000

Vacancy sq m 40,100

Change sq m QoQ -200

3.1%

0.0%

871,000

40,500

-2,000

4.6%

-0.3%

1,071,600

60,800

7,800

5.7%

0.8%

92,300

2,400

-300

2.6%

-0.3%

3,323,900

143,700

5,300

4.3%

0.1%

424,400

29,400

300

6.9%

0.0%

West- and South Zealand

1,298,300

82,600

-12,100

6.4%

-0.9%

Region Zealand

1,722,700

112,000

-11,800

6.5%

-0.7%

Funen

1,263,800

73,500

1,700

5.8%

0.1%

South Jutland

1,673,800

149,400

4,300

8.9%

0.2%

Southern Denmark Region

2,937,600

223,000

6,100

7.6%

0.2%

East Jutland

1,979,600

113,600

-1,100

5.7%

-0.1%

West Jutland

1,008,200

62,300

-2,000

6.2%

-0.2%

Central Jutland Region

2,987,800

175,900

-3,100

5.9%

-0.1%

North Jutland

1,341,400

119,400

2,700

8.9%

0.2%

Region North Jutland

1,341,400

119,400

2,700

8.9%

0.2%

12,313,300

774,000

-900

6.3%

0.0%

Denmark, total

Source: Oline ED-Statistikken (Oline ED-statistics), data as of 1 October 2013. "% of building stock" is the proportion of empty space in sq m relative to the total building stock.

EDC Research - Fall 2013 - page 9

edc Market update I nd u stri a l & Lo g istics fa l l 2 0 13

Industrial & Logistics Yield in %, yearly market rent in â‚Ź / sq m and forecast for the next 3-6 months Facility class A Copenhagen

Facility class B

Facility class C

Facility class A

Facility class B

Facility class C

Yearly market rent in â‚Ź / sq m

Yield in %

Prime

7.00

7.50

7.75

Secondary

7.50

8.00

8.25

Tertiary

7.75

8.50

9.00

Prime

7.50

8.25

9.00

Secondary

8.00

8.50

9.50

Aarhus

Aalborg Prime

7.75

8.00

9.00

Secondary

8.75

9.25

10.25

Prime

7.00

7.50

7.75

Secondary

7.25

7.75

8.25

Triangle area

Source: EDC Erhverv Poul Erik Bech. Data as of 1 October 2013. Forecasts: All forecasts reflect our expectations for the development over the next 3 to 6 months.

Vacant industrial & logistics space in sq m, in % of building stock and forecast for the next 3-6 months Vacancy sq m Capital Region of Denmark

As % of building stock

Change % QoQ

Change % YoY

709,400

4.0%

0.0%

-0.3%

East Jutland (including Aarhus)

829,500

5.2%

-0.1%

0.0%

North Jutland Region (Including Aalborg)

299,100

2.2%

0.0%

-0.4%

South Jutland (including the Triangle Area)

829,800

4.3%

-0.1%

0.4%

Forecast

EDC Research - Fall 2013 - page 10

edc Market update I nd u stri a l & Lo g istics fa l l 2 0 13

Vacant industrial & logistics space in sq m, in % of building stock and forecast for the next 3-6 months 6% 829,500 sq m 5% 829,800 sq m 709,400 sq m

3% 299,100 sq m 2%

Capital Region of Denmark Capital Region of Denmark

EastJutland Jutland East (includingAarhus) Aarhus) (including

NorthJutland JutlandRegion Region South Jutland Jutland North South (Including Aalborg) Aalborg) (including Triangle (Including (including thethe Triangle Area) Area)

Source: Vacancy data from Oline ED-Statistikken (Oline ED-statistics). Data as of 1 October 2013. Forecasts: EDC Erhverv Poul Erik Bech. All forecasts reflect our expectations for the development over the next 3 to 6 months.

Key vacancy figures from Oline ED-Statistikken (Oline ED-statistics) Industrial & logistics

Building stock

Vacancy sq m

As % of building stock

Change in % QoQ

-13,300

0.5%

-0.2%

476,300

-8,400

6.2%

-0.2%

207,900

15,200

5.0%

0.3%

Central Copenhagen

5,364,000

24,200

Copenhagen area

7,626,700

North Zealand

4,124,900

Bornholm Capital Region of Denmark East Zealand West- and South Zealand Region Zealand Funen

Change sq m QoQ

828,400

1,000

0.1%

0.0%

17,944,000

709,400

-6,500

4.0%

0.0%

3,315,700

160,300

12,700

4.8%

0.3%

9,812,600

342,700

22,900

3.5%

0.2%

13,128,300

502,900

35,500

3.8%

0.2%

9,141,400

446,700

2,600

4.9%

0.0%

South Jutland

19,082,900

829,800

-15,200

4.3%

-0.1%

Southern Denmark Region

28,224,300

1,276,500

-12,600

4.5%

-0.1%

East Jutland

15,881,800

829,500

-9,400

5.2%

-0.1%

West Jutland

12,623,000

514,800

-67,000

4.1%

-0.5%

Central Jutland Region

28,504,800

1,344,400

-76,300

4.7%

-0.3%

North Jutland

13,448,600

299,100

-200

2.2%

0.0%

Region North Jutland

13,448,600

299,100

-200

2.2%

0.0%

101,250,000

4,132,200

-60,200

4.1%

0.0%

Denmark, total

Source: Oline ED-Statistikken (Oline ED-statistics), data as of 1 October 2013. "% of building stock" is the proportion of empty space in sq m relative to the total building stock.

EDC Research - Fall 2013 - page 11

edc Market update residenti a l renta l properties fa l l 2 0 1 3

Older residential rental properties

Newer residential rental properties

Yield in %, yearly market rent in € / sq m and forecast for the next 3-6 months Older residential rental properties Facility class A Copenhagen

Facility class B

Facility class C

Newer residential rental properties Facility class A

Yield in %

Facility class B

Yield in %

Facility class A

Facility class B

Yearly market rent in € / sq m

Prime

3.25

3.50

4.25

4.75

5.00

245

205

Secondary

3.75

4.25

5.00

5.25

215

175

Tertiary

4.50

5.00

6.00

5.25

5.50

190

150

Prime

3.00

4.75

190

165

Secondary

3.50

5.00

165

135

Tertiary

4.50

5.25

150

125

Prime

4.25

5.00

5.50

5.00

5.25

150

130

Secondary

5.00

5.50

5.75

5.50

5.75

130

115

Tertiary

6.50

6.75

7.25

5.75

6.25

115

110

Prime

6.25

6.50

7.25

6.00

6.75

135

125

Secondary

7.00

7.25

8.00

6.75

7.00

110

Tertiary

7.50

7.75

8.25

Aarhus

Aalborg

Triangle area

Note: The major difference between the two types of residential property above is that ”Older residential rental properties” are regulated by the provisions in the Danish Rent Act (Lejeloven) and the Housing Regulation Act (Boligreguleringsloven) concerning cost driven rental levels. “Newer residential rental properties” taken in to use no earlier than 1 January 1992 are subject to the rules concerning free market rent, pursuant to the Housing Regulation Act § 15 A and others.

EDC Research - Fall 2013 - page 12

edc Market update f a l l

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Hard work, ethics and a solid business sense – were the three pillars on which I founded my company in 1978. These core values are still the same and their legitimacy has been confirmed by good results, solid growth and satisfied clients. Hard work is part of our culture which is deeply rooted throughout the company. Every day our employees do their upmost to provide our clients with knowledge-based advice and first-class service and our phones are open from 7 a.m. to 9. p.m. - 365 days a year. Our ethics mean you can have confidence in us; in our dedication and our business ethics, in our way of working together, and in our transparent processes that provide our clients with security and overview. A solid business sense is your guarantee for a satisfactory and profitable business outcome. Our focus is representing our clients and their interests in the most optimal way possible. The performance of our experienced specialists is continuously assessed with regards to competence, performance and negotiating skills to ensure our clients always have confidence in the quality of our services. Nationwide commercial real estate company – with local knowledge Our commitment to our core values has turned EDC Poul Erik Bech in to a nationwide company with a strong presence in Denmark. Our 14 commercial offices ensure that we have in depth knowledge of the local area and the market as a whole. We continuously work actively and highly focused to have the industry’s most powerful network in order to be up to date with the changing market and our clients’ needs. We look forward to working with you.

Purchases International division

Poul Erik Bech Chairman

Selling of development projects

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EDC Research - Fall 2013 - page 13

edc Market update f a l l

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Why invest in Denmark

Why invest in Danish real estate? • Low transaction costs • High degree of market transparency and stability

The Danish mortgage system

• Low financing rates through Danish mortgage credit

institutions • Solid key economic indicators • AAA credit rating and stable outlook* * S&P as of 1 July, 2013.

Low financing rates • Low origination costs • Low APR compared to the majority of European markets • Highly transparent, stable and liquid mortgage bond

market

Loan

Investment

Repayment. interest and margin

Bonds Repayment and interest

• Flexible loans on conditions close to funding

conditions of capital market players

Borrower

Mortgage institution

Investor

EDC Research - Fall 2013 - page 14

edc Market update f a l l

2 0 1 3

• Low financing rate: Bond yield plus a small markup

(margin) for the mortgage bank • Debt/value ratio: Financing through the mortgage

Low transaction costs

institutions, normally up to 60% of valuation

As buyer:

• Loan maturity: Min. 1 year (yearly refinancing), max. 20 years

Deed registration: 0.6% of purchase price + € 190

• Payment structure: Floating or fixed rates, with or

without quarterly principal repayments

Mortgage: 1.5% of the mortgage’s principal +€ 190

• Each new loan is in principle funded by the issuance of

new mortgage bonds of equal size and identical cash flow and maturity characteristics, called the Balance Principle. Proceeds from the sale of the bonds are passed on to the borrower and similarly, interest and principal payments are passed directly to investors holding mortgage bonds

Costs for own advisor, lawyer, agent etc. are typically very low As seller: Agent, lawyer etc. varies, but typically between 1 - 4% of purchase price depending on deal size

• The Danish mortgage institutions have existed since

1850 and are considered very strong and very low risk financial instruments

Denmark is known to have some of the lowest roundtrip property transactions costs

• In terms of volume outstanding, Denmark has the

second largest share of the mortgage bond market in Europe • There has never been an incidence of default on a

Danish mortgage bond

High degree of transparency Denmark is among the most transparent markets in Europe and worldwide*. The transparent Danish market provides the investor with a secure and low risk environment for foreign direct investment. Investments in Denmark are conducted in a market which benefits from a highly transparent and stable legal and regulatory framework coupled with a simple transaction process. *In the recent 2012 version of the Jones Lang LaSalle Global Real Estate Transparency Index ®, Denmark was rated a transparent market and is among the top 15 markets worldwide, when it comes to market transparency.

Lease structure • Rent adjustment, normally adjusted yearly with the

rate of inflation or a fixed minimum rate • Rent review every fourth year. Terms are flexible • It is possible to agree on a threshold for the rent. Eg.

Solid key economic indicators 2012

2013

2014

GDP growth (%), YOY Denmark

-0.5

0.7

1.7

-0.3

-0.1

1.4

Unemployment rate (%) Denmark EU

7.5

7.7

7.6

10.5

11.1

Current account balance (% of GDP) Denmark

5.2

4.5

5.0

0.9

1.6

1.9

Denmark

2.4

1.1

1.6

2.6

1.8

1.7

Inflation (%)

Source: The Economic forecast (Spring 2013) from the European Commission.

the rent cannot drop further than the rent in force at the start of the tenancy • The landlord and the tenant can freely agree on the rent

amount as long as the rent is not unreasonable or contrary to sound business practices • Lease length: There are no statutory restrictions on the

duration of a commercial lease agreement. It is normal to have interminable leases in place

EDC Research - Fall 2013 - page 15

• The leading real estate agency in Denmark in the areas of selling, leasing, valuation and advisory • Founded in 1978, operating nationwide across 14 commercial real estate branches, more than 40 residential real estate branches, and finally 6 residential real estate branches in France and Sweden. • Owner of the property management company LEA Ejendomspartner (LEA Property Partner) • More than 350 employees Our greatest strength is our nationwide presence and local knowledge with more than 65 commercial real estate specialists servicing our clients. We are chartered surveyors, valuers and certified member of RICS. We especially deal with the following types of property: • Investment properties, properties for rent and owner-user properties • Offices, high street retail, industrial & logistics and mixed-use properties • Residential rental properties • Land and development projects • Hotels, restaurants and leisure sector We offer our clients a wide range of services: • Execution of investment transactions of single assets. portfolios and on a company level

• Due diligence

• Letting services

• Property and facilities management

• Valuations (RICS)

• Project development consultancy

• Capital structure advisory

• Sale and Lease Back

• Tenant and landlord representation • EDC Location Search • EDC PropertySWAP® • Research services • Bespoke consultancy and market study services

Office locations: Copenhagen +45 33 30 10 00 • 114@edc.dk

Herlev +45 44 57 03 37 • 278@edc.dk

Naestved Odense Kolding +45 55 78 66 03 • 473@edc.dk +45 66 12 61 27 • 512@edc.dk +45 76 33 80 10 • 603@edc.dk

Koge +45 55 35 55 53 • 469@edc.dk

Hillerod Roskilde +45 48 26 99 10 • 342@edc.dk +45 46 33 33 33 • 403@edc.dk

Aabenraa Sonderborg Esbjerg +45 73 33 13 00 • 620@edc.dk +45 58 58 80 20 • 641@edc.dk +45 76 10 48 00 • 670@edc.dk Aarhus Aalborg +45 87 30 99 30 • 802@edc.dk +45 96 31 49 00 • 912@edc.dk

Chartered surveyors & international property consultants

Read more: poulerikbech.dk/research/english

Vejle +45 75 83 13 11 • 710@edc.dk

EDC Poul Erik Bech

Published on Oct 1, 2013

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