Funds advised by Ekistics Property Advisors LLP (“Ekistics”), a real estate private equity advisor which acquires and manages direct equity investments in Western Europe is pleased to announce Ekistics’ first investment in Denmark: the successful DKK 450.0 million acquisition of a multi-let office and data centre located in Lautrupparken, Ballerup, an established office submarket 15km from Copenhagen, Denmark.
It represents Ekistics’ seventeenth investment to date and the third in the past year, following two logistics development projects in Germany which are expected to reach practical completion later this year.
The property, which comprises approximately 37,000 sqm, has been acquired in a sale-leaseback transaction from SDC A/S (“SDC”) and is also let to strong anchor tenants such as IBM Denmark ApS (“IBM”). Both SDC and IBM have been resident at the property for a significant number of years, highlighting the mission-critical importance of the property to their operations. SDC had owned the property since its establishment and IBM has leased a part of the property for more than 17 years already.
In the years prior to the acquisition by Ekistics, the property benefited from extensive investment by both SDC and IBM and is considered state-of-the-art. Priding itself on adopting a partnership approach in relation with its tenants across the portfolio, Ekistics intends to utilize its strong balance sheet to keep the newly acquired property in the same good condition. It expects to operate this Property as a long-term buy and hold investment, achieving a positive return to its investors primarily from the stable, inflation-protected cash flow stream generated by the property’s leases.
Ekistics was assisted throughout the acquisition process by NCAP Denmark Aps (“NCAP”) as its buy-side adviser. NCAP was instrumental in establishing the direct contact between Ekistics and SDC, which enabled both parties to embark on this landmark transaction in a spirit of goodwill and trust. Lundgrens Law Firm P/S (“Lundgrens”) – a leading independent law firm in Denmark – acted as a legal adviser and Nykredit Realkredit A/S (“Nykredit”) – one of Denmark’s leading financial service companies – was a financing provider. In the sales process, SDC has used the law firm Bruun & Hjejle as legal counsel and PwC’s real estate team as a sales consultant.
Henrik Buchholt Bach, CFO of SDC A/S, commented, “We are very pleased with the agreement, which ensures that we can focus on IT development for the banks, which is our core business. We look forward to a good collaboration with Ekistics in our new role as tenant.”
Axel Waldecker, Managing Director of Ekistics Property Advisors LLP, remarked that “This acquisition represents an important milestone for us in Denmark and the Nordics more generally. We are proud to have the opportunity to become the real estate partner of choice for such strong quality companies as SDC and IBM. We are confident that this property will continue to complement our overall portfolio for a long time. At the same time, we look forward to expanding our newly established presence in this exciting market over the coming years as well.”
Niels Keergaard Christiansen, Partner of NCAP Denmark Aps, added, “NCAP are very pleased to have been able to partner with Ekistics and assist them in this acquisition. We are really excited about the potential to improve the property further and to be able to enhance returns over the medium and long terms. We very much look forward to working with Ekistics going forward and are delighted that they have chosen NCAP as their Local Partner’’.
Ekistics Property Advisors LLP (“Ekistics”) was established in June 2009 as the investment advisor to a private equity real estate fund. Ekistics focuses on the creation of an income producing, well diversified real estate portfolio. Downside protection and intergenerational wealth preservation are hallmarks of its investment philosophy. Ekistics has invested approximately EUR 500.0 million of gross asset value across the United Kingdom, Germany, Ireland and Spain, in, inter alia, value-add, direct real estate private equity investments.
Ekistics Property Advisors LLP has 15 employees across two offices, one in London, UK and another in Vilnius, Lithuania. It is authorized and regulated by the Financial Conduct Authority with authorization number 502532.
SDC A/S (“SDC”) is a leading IT service provider in the financial sector supplying IT services to more than 120 banks in the Nordic countries.
The main activities comprise development, maintenance and joint purchase of IT systems and related services. IT operation services also form a part of the Company´s core deliveries. These services are outsourced to JN Data, of which SDC is a co-owner. SDC has activities in Denmark, Poland, Sweden, Norway, Faroe Islands and Finland.
NCAP Denmark Aps (“NCAP”) is a specialist real estate investment and asset management company with offices in Copenhagen, Oslo, Stockholm, Helsinki and London. The company provides local operating partner services for investors, with core activities which include deal origination, provision of market intelligence & due diligence underwriting, sourcing of local debt and asset management services.