Colliers Market Report Denmark 2023

95

Industrial & logistics - Colliers Market Report 2023

Hotel I ndustrial & logistics Retail Residential Office

Investor yield requirements slightly up Interest rate hikes on a global scale have driven up inves tors’ yield requirements, but changes have been less pro nounced in terms of Danish industrial/logistics facilities. This is because Danish yields already exceed the levels seen in most other northern European countries, one explanation being that the Danish industrial/logistics property market has been a relative immature market in a historical context. Denmark generally offers high yields relative to its neigh bouring countries, with foreign investors thus developing an interest in the Danish market over years. This trend is hardly coming to an end even though some investors have been waiting for interest rates and pricing to settle. The current market situation is one of the key reasons why several investors await stabilisation in fear of mak ing unsound investments if they jump the gun. However, an unprecedented amount of money is today allocated to the sector, and many funds are required to invest this money within some years but currently keep it in standby position.

Foreign investors continue to predominate the inves tor field mainly focusing on top-quality properties with a single or only few tenants on long leases, located in traditional investment destinations such as Greater Copenhagen, the Triangle Region and Aarhus. In June 2022, US private equity fund Starwood acquired the Danlog portfolio in Jutland with a price tag of approximately DKK 1.5 billion, and in the same month, German Allianz acquired two DSV logistics facilities in Hedehusene at a price in excess of DKK 2 billion in a sale-leaseback arrangement. Unlike the past, foreign investors of today are in the market for high-volume properties as well as for bun dles of smaller properties. However, this investor group tends to accept only lim ited vacancy rates when making investments, giving local investors a chance to strike, provided they have the stomach for buying properties with some vacancies.

Property: Sysselvej 67, Vejle Øst, Triangle Region Investor: Verdion