Valad Europe has traded over EUR56m of assets and let 400,000 square metres of office, industrial and retail space across the Nordic region during 2012.
This included over 170,000 sq m of new lettings and 230,000 sq m of lease renewals.
The greatest proportion of letting activity occurred in Sweden with over 71,000 sq m let across 200 new leases and almost 118,000 sq m renewed across more than 560 lease renewals, totalling around EUR18m of annual rental income. Highlights amongst the regional letting activity include 4,900 sq m of office space let at Copenhagen Business Park to various different tenants, including Santander Consumer Bank who expanded their existing lease, and over 8,000 sq m of office space let at the Älvsjö 360 Building in Stockholm. The Greater Gothenburg region of Sweden was also a significant contributor, with 44 new leases secured, totalling almost 19,000 sq m.
More than 30 assets were traded across the Nordic region during the year from both Valad’s own managed funds and from its single account workout mandates. The majority of assets traded were located in Sweden, accounting for 85 per cent of the transactions, where market liquidity has been particularly strong.
Valad Europe’s success in the Nordic region was delivered against a backdrop of a number of new business wins across Europe. In December, Valad was appointed by Deloitte as the receivers and administrators, to manage a mixed workout portfolio of 25 assets within the Gemini property portfolio in the UK. In January 2013, Valad entered into a GBP100m joint venture with South African investor, Grindrod, for a new separate account mandate to build a portfolio of industrial assets in the UK.
Mikael Arne Fogemann (pictured), Valad Europe’s head of Nordics, says: “In 2012, we put a strong focus on active asset management and completed the business plans for a number of assets across the region. This was manifested in the high overall number of lettings and renewals which averaged almost five lease renewals or new leases being signed each business day.
“It is worth noting a shift in demand across Europe from investors looking for a more hands-on approach to real estate investment management through separate account mandates whereby they are able benefit from strategies tailored specifically to their requirements. We expect this trend to continue in 2013 and beyond. Our separate account mandates, like the recent Grindrod joint venture, demonstrate that Valad Europe is in a prime position to deliver the strategies, deal execution and management that investors are seeking.”
Valad manages around EUR900m of assets in the Nordic region across six mandates, comprising approximately 160 assets and 1,400 tenants, managed by teams in Denmark, Sweden and Finland.