Two historic development properties, centrally located on Kultorvet in Copenhagen
Source: Kbh Billeder: Kultorvet mod Frederiksborggade 1900-1910.
Sankt Gertruds Stræde
TWO DEVELOPMENT PROPERTIES
The properties will be available for the buyer's disposal and offer multiple development opportunities
CASH FLOW DURING BUYER'S PROJECT
PLANNING PHASE
The seller will enter into a fixed-term lease agreement with the buyer as part of the sale
MIXED PROPERTIES
Currently, the properties are primarily used for office Additionally, Kultorvet 14/Sankt Gertruds Stræde 1 includes a vacant restaurant and four residential units
CENTRAL LOCATION
Kultorvet in Copenhagen offers the perfect combination of city life, environment, and recreational areas
Kultorvet 16 was home to the men's clothing company F Zachariae Magasiner from the 1880s to the 1930s
PUBLIC TRANSPORTATION
200 meters from Nørreport Station, providing excellent infrastructure and easy access with the metro, S-train, bus, and regional trains PRESERVED BUILDINGS WITH HISTORICAL IDENTITY
INTRODUCTION
On behalf of KommuneKredit, Cushman & Wakefield | RED is pleased to offer the properties at Kultorvet 16 and Kultorvet 14/Sankt Gertruds Stræde 1 ('Kultorvet 14'), Copenhagen K, for sale
This is a unique opportunity to acquire two historic and preserved properties, attractively located on Kultorvet in the heart of Copenhagen's city centre, close to vibrant city life, shopping, and recreational areas
DEVELOPMENT PROPERTIES
KommuneKredit currently uses the properties for offices, while Kultorvet 14/Sankt Gertruds Stræde 1 additionally comprises four residential units and a split-level restaurant on the ground floor The restaurant is kept vacant for the buyer's development plans
KommuneKredit will enter into a fixed-term lease agreement with the buyer, after which they will vacate the properties With the exception of four residential units, the properties will be fully available for the buyer’s disposal This investment offers the opportunity to develop the properties for various uses, including optimizing cash flow by converting the ground floor of Kultorvet 16 back to retail
PROCESS
The asking price for the properties is DKK 120 M The Seller wishes to engage in dialogue with potential interested buyers until a formal exclusivity agreement has been signed with a potential buyer
The transaction will be carried out as an asset deal
LOCATION
CITY LIFE & RECREATIONAL AREAS
The properties are located on Kultorvet in Copenhagen's Inner City in an area with the perfect combination of excellent infrastructure, recreational areas and a rich shopping scene
The location on one of Copenhagen's main shopping streets, close to public transport and scenic areas in the Botanic Gardens, King's Garden and The Lakes, makes the properties attractive for both office, residential and retail use
OPTIMAL INFRASTRUCTURE
Close to the properties is one of Denmark's busiest transportation hubs, Nørreport Station, from which regional trains, S-trains and the metro depart, making the properties easily accessible
The location on Kultorvet in Copenhagen, close to city life, shopping, recreational areas, and optimal infrastructure, creates a solid foundation for high tenant demand .
KULTORVET 14-16
NØRREPORT ST
KING'S GARDEN
KULTORVET
KØBMAGERGADE
ROUND TOWER
TORVEHALLERNE
BOTANIC GARDEN
ØRSTEDSPARKEN
GARDEN
NØRREPORT ST
KULTORVET 16 & SANKT GERTRUDS STRÆDE 1
Kultorvet 14-16 & Sankt Gertruds Stræde 1, Copenhagen K
CPH CENTRAL ST
KING'S SQUARE
MARBLE CHURCH
AMALIENBORG PALACE
THE AREA
THE PROPERTIES
HISTORIC CITY PROPERTIES
Kultorvet 14 & 16 are two neighboring properties located centrally on Kultorvet
Kultorvet 16 was built in 1877 and has a wide facade facing Kultorvet and Frederiksborggade � Kultorvet 14 comprises three buildings The building facing Kultorvet and the backyard building were constructed in 1733, while the residential building at Sankt Gertruds Stræde 1 was built in 1755
INTEGRATED NEIGHBORING PROPERTIES
KommuneKredit has owned and occupied Kultorvet 16 since 1970 and acquired Kultorvet 14 in 1997 to expand their office space As a result, the layouts of the properties have been integrated, allowing for access between floors across both Kultorvet 14 and Kultorvet 16
HISTORY & SAVE-VALUE
5 KULTORVET 16, KØBENHAVN K
The property comprises a corner building originally constructed for the antiquarian Christen Olsen Høeldt, featuring a store in the basement and on the first floor
From the 1880s to the 1930s, the building was occupied by Francis Zachariae for the men’s clothing business, F . Zachariae Magasiner, which included sales areas, offices, and tailor's workshops The property is preserved at level 5
4 KULTORVET 14, KØBENHAVN K
The property comprises two front buildings and a building in the backyard� The corner building facing Kultorvet was originally constructed for carpenter Christen Sørensen as a half-timbered house with two floors and a partial basement Between 1788 and 1793, the property was expanded with two additional floors facing the street and three floors toward the courtyard, with a fifth floor added in 1850� The property is preserved at level 4�
Source: Indenforvoldene.dk 2009-2024
Source: Kbh Billeder: Kultorvet mod Frederiksborggade 1900-1910.
AREAS & USE
CURRENT USE
Kultorvet 16 is currently used by KommuneKredit for office space, with a reception and meeting room on the ground floor and canteen facilities on the 5th floor
KommuneKredit also occupies office space in Kultorvet 14, from the 1st to the 4th floor, in the building with the facade facing Kultorvet This building includes a restaurant on the ground floor The remaining areas at Sankt Gertruds Stræde 1 consist of four residential units and a meeting room for KommuneKredit, which was previously a residential unit
LAND SURVEYOR
The property areas have been measured by a land surveyor in accordance with BEK no 311 of 1983 The total gross area of the properties is 2,870 m², including the basement An overview of the areas and the distribution per floor is provided on the right�
AREAS AVAILABLE FOR THE BUYER’S DISPOSAL
The restaurant on the ground floor will be kept vacant for the buyer’s development plans, while KommuneKredit will vacate their premises within an agreed period
With the exception of the residential units at Sankt Gertruds Stræde 1, all other areas will be available for the buyer’s disposal �
KULTORVET 16
16
16
16
16
KULTORVET 14 / SANKT GETRUDS STRÆDE 1*
Gertruds Stræde
PROPERTY FACTS
THE PROPERTY KULTORVET 16
Address
Kultorvet 16, 1175 Copenhagen K
14
Kultorvet 14, 1175 Copenhagen K
Sankt Gertruds Stræde 1, 1129 Copenhagen K
Title no 149, Klædebo Kvarter 150, Klædebo Kvarter
Energy label C F - Kultorvet 14
Year of contruction 1877 (1976)
SAVE value
Preserved at level 5
D - Sankt Gertruds Stræde 1
1733 (1850) - Kultorvet 14
1755 (1810) - Sankt Getruds Stræde 1
Preserved at level 4 (Kultorvet 14 & SGS 1)
Preserved at level 9 (SGS1A)
CONDITIONS
Ongoing construction projects
Planning issues Local plan no. 164 "Købmagergade"
plan no. 164 "Købmagergade"
Heat supply District heating District heating
EASEMENTS & LIABILITIES
KULTORVET 16
NO. DATE DESCRIPTION
1 June 15, 1896 Doc about basement
2 Nov 5, 1990 Local plan no. 164
3 Oct 4, 1991 Doc on foundation and groundwater Lowering, etc.
4 Jan 23, 1995 Doc on district heating/systems, etc. (F-13-I)
5 Mar 6, 1995 Doc on building permit and conditions for this, etc.
6 Feb 26, 2007 Doc on protection of Metro. SE AKT 1_KLÆ_A141_1
KULTORVET 14
NO. DATE DESCRIPTION
1 Jan 9, 1959 Doc on building permit and conditions for this, etc.
2 Jul 25, 1974 Lease contract with Flemming Hansen A/S
3 Jun 2, 1987 Doc on heating supply/district heating system, etc.
4 Oct 15, 1990 Lease contract w. Kommune Leasing A/S, non-term. until Oct 1, 1995
5 Nov 5, 1990 Local plan no. 164
6 Oct 4, 1991 Doc on foundation and groundwater lowering, etc.
7 Dec 27,1 991 Doc on the hot water cylinder in the basement and the shared water supply system
8 Jan 23, 1995 Doc on district heating/systems, etc. (F-13-I)
9 Feb 26, 2007 Doc on protection of Metro. SE AKT 1_KLÆ_A141_1
REGISTERED LIABILITIES
There are no registered liabilities on the properties
TENANCY SCHEDULE & OPEX
SALE & LEASEBACK
As part of the sale, KommuneKredit will enter into a fixed-term lease agreement, offering the buyer a cash flow during the planning phase of the investor's development project
The head of terms for KommuneKredit's lease agreement are detailed on page 15
RESIDENTIAL TYPES
Three out of the four residential units have been refurbished and are let out in accordance with "Danish : Det Lejedes Værdi " according to the Danish Rental Act ("Lejeloven"), while the last unit on the 5th floor is let to cost-regulated rent (OMK) Additionally, the 2nd floor of Sankt Gertruds Stræde 1, currently used as a meeting room, can be easily converted back into residential, once KommuneKredit vacates the premises
OPERATING EXPENSES
The properties are owner-occupied and have, therefore, been used as user properties by KommuneKredit for many years
We recommended that interested investors make their own assumptions for the properties' operating expenses in terms of their business plan since the properties' operating expenses depend on the future use of the assets
The areas cf. the four residential leases differ by a total of 9 m² from the areas cf. the land surveyor.
HEAD OF TERMS
Address
Kultorvet 16, 1175 Copenhagen K (the total property)
Lease areas 2,041 m² office & 241 m² storage = 2,282 m²
Use Office & administration.
Lease commencement The date of takeover.
Yearly rent
Specification of the rent
Rent is calculated as net rent, and operating costs and service charges are paid in addition to the rent.
2,041 m² of DKK 1,200 per m²
241 m² of DKK 800 per m²
Total
DKK 2,449,560
DKK 192,800
DKK 2,642,360
Operating costs Opex are paid by the tenant, except for administraion and exterior maintenance.
Service charges All service charges are paid by the tenant.
Maintenance The tenant is responsible for the interior maintenance. The landlord is responsible for the exterior maintenance.
VAT registration TBD.
Indexation There is no indexation during the lease period.
Deposits None.
Non-termination period
The lease has a fixed term of 18 months from the commencement date. The tenant has the option to extend the lease twice, each time for an additional 6 months, following the non-termination period.
Notice period The lease is for a fixed term and cannot be terminated before the end of the lease term.
Move-out The tenant must return the lease in the same condition as at the lease commencement.
DEVELOPMENT OPPORTUNITIES
STRONG DEMAND & SEVERAL POSSIBILITIES
There is strong demand for all types of residential units, offices, and retail spaces in the prime location at Kultorvet, and the investment opportunity offers the buyer the flexibility to develop the properties for various uses
CONVERSION BACK TO RETAIL
The ground floor of Kultorvet 16 is currently used for office purposes, including a reception area and a meeting room for KommuneKredit However, according to local plan no 164 "Købmagergade," the ground floor and high basement of buildings with facades within 15 meters of Kultorvet must be used for public-oriented service businesses, such as retail, restaurants, etc
The property's wide facade facing Kultorvet and Frederiksborggade presents a unique opportunity to convert the ground floor and basement of Kultorvet 16 back to retail use, which will optimize the property's cash flow for investors
CONTINUED OFFICE USE
The demand for historic city properties located in the heart of Copenhagen is high from office tenants, and the location on Kultorvet, close to the public transportation hub on Nørreport St , is ideal for many companies The buyer will thus have the opportunity to refurbish the office space and obtain a high rent of DKK per m² for continued office use �
RESIDENTIALS
According to the municipal planning framework, the area of Kultorvet 16 is zoned for mixed residential and commercial use, while Kultorvet 14 and Sankt Gertruds Stræde 1 are zoned for residential use
Therefore, the buyer can potentially convert the existing office spaces into residential units Given the current use of Kultorvet 16, the buyer can divide into condominiums before the conversion Additionally, converting the property from commercial to residential use would allow the buyer to lease the residential units at free market determination �
FLOOR PLAN – BASEMENT
Areas are measured by land surveyor according to BEK no. 311 of 1983.
Sant Gertruds
Stræde
FLOOR PLAN – GROUND FLOOR
FLOOR PLAN – 1ST FLOOR
Areas are measured by land surveyor according to BEK no. 311 of 1983.
Sant Gertruds
Stræde
FLOOR PLAN – 2ND FLOOR
Areas are measured by land surveyor according to BEK no. 311 of 1983.
FLOOR PLAN – 3RD FLOOR
Areas are measured by land surveyor according to BEK no. 311 of 1983.
Sant Gertruds
Stræde
FLOOR PLAN – 4TH FLOOR
Areas are measured by land surveyor according to BEK no. 311 of 1983.
FLOOR PLAN – 5TH FLOOR
Areas are measured by land surveyor according to BEK no. 311 of 1983.
Sant Gertruds
Stræde
FLOOR PLAN – 6TH FLOOR
Areas are measured by land surveyor according to BEK no. 311 of 1983.
Loft
m2
MARKET RENT FOR RETAIL
OPTIMIZING THE CASH FLOWS
The ground floor at Kultorvet 16 has an attractively wide facade facing Kultorvet and Frederiksberggade, which creates great visibility for pedestrians on the high street This gives investors a unique opportunity to optimize the property's cash flows by converting the ground floor and basement from office (reception & meeting room) back to retail
GROSS RENT PER M² – GROUND FLOOR
KØBMAGERGADE,
FREDERIKSBORGGADE & KULTORVET
UNDERWRITING
Below, we have presented underwriting of comparable retail leases located on the surrounding streets of Købmagergade, Kultorvet and Frederiksborggade
KULTORVET 14-16 & SANKT GERTRUDS STRÆDE 1
OFFERING RENT FOR OFFICE
LEASES IN COPENHAGEN CITY
CHARACTERISTICS OF THE OFFICE MARKET
The center of Copenhagen includes all of Copenhagen K, parts of Copenhagen V (around The City Hall, the streets down towards The Lakes, Bernstorffsgade and Kalvebod Brygge) as well as the newer office buildings in the area of the old Tøjhusgrund on Weidekampsgade in Copenhagen S
32% of the building stock in Copenhagen CBD is office space, the majority of which is in the older building stock � This can be attributed to the fact that Copenhagen CBD (apart from Postbyen) is generally characterized by limited opportunities for adding additional new office stock
THE MOST EXPENSIVE OFFICE LEASES ARE LOCATED NEAR METRO STATIONS
The market rent for office space in Copenhagen CBD & Christianshavn area varies significantly depending on the location and condition of the leases
Aside from Postbyen, the most expensive office leases in the area are mainly located in the old building stock in the areas around the metro stations, e g Frederiksstaden, King's Square, City Hall, and Nørreport
COMPARABLE OFFICE LEASES
Gross rental levels for comparable office leases in the area from 2022–June 2024
* The average offering rent is based on 48,387 observations from 2023 (entire Denmark), and is stated in DKK per m² per year (rounded).
** The figure indicates the change in the offering rent (in %) and in the offering period (in days) from 2022 to 2023.
LIOR KOREN
Partner
Head of Capital Markets
lk@cw-red dk
M: 27 11 05 08
JOSEFINE PFEIFFER Manager
Capital Markets
jop@cw-red dk
M: 29 90 06 55
CHARLOTTE HUSEN Director
Capital Markets
chu@cw-red dk
M: 29 28 87 71
ADAM ALEXANDER BLIGAARD Associate
Capital Markets
ab@cw-red dk
M: 33 13 13 99
MARKETING
THIS PROPERTY IS MARKEDTED BY CUSHMAN & WAKEFIELD | RED
For further information or access to the data room, please contact Lior Koren or Josefine Pfeiffer
DISCLAIMER
1 This investment memorandum is solely for guidance and for potential buyers of the property
2 Any information contained in this investment memorandum is given by the Seller Cushman & Wakefield | RED declares, that the information to our knowledge is correct and represents the actual parts and aspects of the property at the time when this investment memorandum was prepared Certain aspects may have changed from the preparation of this investment memorandum until the property being sold The buyer is encourged to do their own commercial, legal andtechnical due diligence of the property in relation to a prospective purchase
3 No employee at Cushman & Wakefield | RED has any authority to make or give any representation or waranty whatsoever in relation to the property since this is reserved to the Seller only
