Kennedy Arkaden

INVESTMENT MEMORANDUM

KENNEDY ARKADEN

STRICTLY CONFIDENTIAL

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SILLEBROEN KENNEDY ARKADEN

KENNEDY ARKADEN

CONTENTS

5

16

32

Introduction

Location Aalborg

Tenant overview

6

20

34

Investment highlights

Microlocation

Financial overview

8

22

36

Danish economy

Location

Transaction structure

12

25

38

Office market

Property description

Disclaimer

14

30

39

Retail market

Floor plans

Contacts

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31,412 sq m floor space

KENNEDY ARKADEN

4.0 million annual visitors An attractive catchment area

99 % economic occupancy

410 parking spaces (one hour of free parking when visiting MENY)

ARKADEN

City centre Location in the heart of Aalborg City centre

KENNEDY

. 4

INTRODUCTION

KENNEDY ARKADEN

Colliers International Investment Services A/S is pleased to present this exceptional invest ment opportunity, offering for sale Kennedy Arkaden, John F. Kennedys Plads 1B et al., DK-9000 Aalborg, title nos. 107a (commonhold no. 1-3, 5-43), 107b, 107d and 107e Aalborg Markjorder (‘Kennedy Arkaden’ or the ‘Property’).

Comprising a total gross floor space of 31,412 sq m, Kennedy Arkaden offers a diversified mix of office, retail and F&B brands along with a grocery store, a fitness centre and ample parking. With a location in Aalborg – the fourth largest city in Denmark – along with close proximity to the city centre, the central station and the E45 motorway, Kennedy Arkaden is well positioned for continued strong operations. The Property has been undergoing a revitalisation and strives to constantly evolve and align its offering with the demands of shoppers and tenants alike. Alongside the well-performing office areas, Kennedy Arkaden features a MENY grocery store, Aalborg’s largest cinema 1 , a fitness centre, several offices and F&B tenants. Retailers include international chains, local shops and service functions, all attracting customers from a wide catchment area while retaining strong local anchorage. Kennedy Arkaden has gradually improved its visitor count in

recent years, reaching a total of 4.0 million visitors in 2022 despite COVID-19 lockdowns.

Completed in 2004 and most recently renovated in 2020, Kennedy Arkaden features a modern design.

Colliers has been retained as sell-side advisor by Commercial Rent Estate Denmark P/S, CVR-no. 27773702 (the ‘Seller’). The proposed sale of the Property is referred to as the Transaction. The Transaction is to take place as a traditional asset deal. Further details will be provided in a financial data package (FDP) made available to prospective buyers along with this investment memorandum. Please contact Colliers for any questions relating to the Property and the Transaction. Property inspections only by prior arrangement with Colliers. Offers are invited.

1 Not included in the transaction.

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INVESTMENT

KENNEDY ARKADEN

01 City centre location

Situated right next to Aalborg Station, the city’s public trans port hub, and in close connection with Aalborg’s vibrant city life, Kennedy Arkaden benefits from an excellent location. The Property enjoys easy access, with the train and bus stations virtually on its doorstep and the motorway just minutes away. Parking is ample, as the Property has parking in construction, allowing for easy access by car.

02 Large catchment area and tourist destination

As a result of its motorway proximity, Kennedy Arkaden is easy to access from the local catchment area and most of the North Denmark Region. In fact, the catchment area includes some 307,000 residents within a 30-minute drive. Further, the Property benefits from the footfall that is secured from its close connection to the city’s public transport hub as well as a bus terminal, a fitness centre, a pharmacy, a cinema, and several clinics.

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HIGHLIGHTS

KENNEDY ARKADEN

03 Diversified tenant mix - financially strong tenants

05 Solid investment conditions

Displaying an impressive 99% economic occupancy rate and lettings to strong office tenants such as the Municipality of Aalborg, Nordjyllands Trafikselskab and several companies in the health sector, Kennedy Arkaden has demonstrated its great tenant appeal. Alongside the strong office tenants, the Property includes desirable retail tenants such as H&M, Imerco, Espresso House and Sunset Boulevard.

Boasting AAA-rated government bonds and a solid economy with prospects of continued high employment levels and, by extension, improved household budgets, Denmark is still con sidered a safe-haven investment destination. This is further underpinned by efficient and business-friendly framework con ditions along with low corruption, high transparency and polit ical stability. Another factor reducing investment risk is the Danish krone being pegged to the euro. In addition, the liquid and efficient Danish bond-backed mortgage system allows for comparatively inexpensive financing opportunities.

04 Strong income security

With only a few vacant secondary areas, Kennedy Arkaden has proved its resilience and strong income security. As a result of the Property’s revitalisation, the current tenant mix is a com bination of newer tenants as well as tenants from when the Property was built. The budgeted annual rental income pre dominantly derives from the contracted base rent, while a smaller part of the rental income is structured as perfor mance-based income. Further, the vast majority of the lease agreements carry inflation-linked indexation clauses with min imum annual rent increases of 2%.

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KENNEDY ARKADEN

DANISH ECONOMY

Danish economy remains strong Danish economy is in stable and healthy condition. Denmark’s has the biggest account surplus and one of the lowest debt to-GDP ratios in the EU. Further, when comparing the business sector with other countries, Danish companies are proving extremely resilient despite the current market situation, which is largely a result of Denmark’s sustained low unemployment levels. Despite continued high core inflation, the tightening monetary policy has caused a significant decrease in inflation in 2023. The lower inflation level and the reduced uncertainty about energy supply have strengthened consumer confidence, which, along with rising real incomes and employment levels, has led to growth in private consumption. Despite turbulent times, Danish economy thus stands strong.

Even though the medical industry is unavoidable in the Danish economy, it is worth bearing in mind that Denmark ranks highly within business and finance, providing a stable and secure busi ness climate as well as high transparency and low corruption. Investors have therefore long perceived Denmark as a safe haven investment market. Inflation has likely peaked In recent years, inflation has been high, which can especially be attributed to increases in energy prices. Inflation peaked in October 2022 with an annual increase in the net price index of 10.3%. Since then, inflation has subsided, and the annual net price inflation in December 2023 amounted to 1.0%, where falling energy prices in particular contributed to driving infla tion downwards. Although energy prices have significantly decreased, they are still about 48% higher in December 2023

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KENNEDY ARKADEN

than in the first half of 2021. It is worth noting that core infla tion, which excludes energy and unprocessed food, remains at a high level. This is due in part to the indirect effects of the high energy prices in previous years on the production of goods and services, which are still reflected in consumer prices. However, core inflation is decreasing as the indirect effects have begun to diminish, and according to the Danish National Bank, it is expected to fall further in 2024. The total annual inflation is expected to decrease from 3.3% in 2023 to 2.0% in 2024. Growth in private consumption After a decline in 2022, private consumption slightly increased throughout 2023. This was mainly due to rising real incomes and a steadily increasing employment rate. Moreover, con sumer confidence has significantly improved since the major declines through 2022, which is primarily attributed to reduced

uncertainty about the energy supply. According to the Danish National Bank, real income is expected to increase by 1% annu ally until the end of 2025 due to solid wage increases. Thus, by 2025, real income will be at the same level as before inflation levels accelerated. Consumer spending is expected to end with a slight increase of 1.0% in 2023 and 1.8% in 2024. Low unemployment rate After many years of record-low unemployment levels, the Danish unemployment rate has slowly started to edge up. Danske Bank expects unemployment to increase slightly from 2.8% in 2023 to 3.1% in 2024, corresponding to an increase of approximately 9,700 unemployed persons by the end of 2024. This is a relatively small increase considering the overall economic outlook, bearing in mind the potentially unfulfilled demand for labour.

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GDP growth

Danish consumer spending expected to rebound

0% 2% 4% 6% 8%

0% 2% 4% 6%

-10% -8% -6% -4% -2%

-10% -8% -6% -4% -2%

KENNEDY ARKADEN

14 15 16 17 18 19 20 Eurozone Denmark

21

22 E23 E24

14 15 16 17 18 19 20 Eurozone Denmark

21

22 E23 E24

Note: Growth in real GDP (year-on-year), Denmark vs eurozone Source: Eurostat, Statistics Denmark, Danske Bank, Colliers

Note: Growth in consumer spending (year-on year), Denmark vs eurozone. Source: Eurostat, Statistics Denmark, Danske Bank, Colliers

Danish unemployment remains low

Higher interest rates to battle inflation

2 3 4 5 6

0% 2% 4% 6% 8%

-10% -8% -6% -4% -2%

-3 -2 -1 0 1

14 15 16 17 18 19 20 Eurozone Denmark

21

22 E23 E24

14 15 16 17 18 19 20 21

22 23 24

Avg. short bond interest (DK) Avg. short bond interest (EUR)

Avg. long bond interest (DK)

Note: Unemployment rate, Denmark vs eurozone Source: Eurostat, Statistics Denmark, Danske Bank, Colliers

Source: Finans Danmark, Colliers

Macroeconomic key indicators

DENMARK

EUROZONE

Year GDP 1

2022

2023E

2024E

2022

2023E

2024E

2.7 2.5 -1.6 10.8

1.1

1.0

3.4

0.5

0.5 6.8 0.6

Unemployment 2

2.8

3.1

6.7

6.5

Consumer spending 1

1.0

1.8

4.2

0.4

Exports 1 Inflation 1

10.3

3.6 2.0

7.4

0.2

1.7

7.7

3.3

8.4

5.5

2.5

Sovereign debt 3

29.8

29.7

27.9

92.6

90.6

89.9

Note: 1 Growth (% y/y), 2 As % of workforce, 3 As % of GDP. Source: Danske Bank.

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KENNEDY ARKADEN

Efficient mortgage system The Danish mortgage system probably offers one of the world’s most efficient and reliable models of property financing, designed to work in favour of both borrowers and bond inves tors as well as the economy in general. It is based on flexibility, transparency and low costs due to market-based prices and favourable repayment terms. Compared to European commercial banks in general, Danish mortgage banks showed their resilience during the financial crisis of 2008-2009 by increasing mortgage lending activi ties. In practice, the mortgage financing market in Denmark is characterised by exceptionally low financing costs and a highly transparent cost structure due to a unique balance principle. Danish mortgage banks grant loans which must be secured by a mortgage on real property, allowing for loan-to-value (LTV) ratios between 50–80% of the property’s ‘as is’ value,

depending on the asset type and the debtor’s credit rating. Danish mortgage banks offer financing at fixed or floating rates with a maturity of up to 30 years. In addition, strong demand for Danish bonds and favourable interest margins facilitate commercial property financing. Political stability Denmark tops the list of the world’s least corrupt countries on the ‘Corruption Perceptions Index’, which ranks countries based on several factors, including corruption in the public sector and transparency in politics. The low corruption rate and general transparency of Danish society contribute to the strong brand value of Denmark. Finally, Denmark offers consensus-based political stability and continuity, providing low-risk framework conditions for invest ments.

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KENNEDY ARKADEN

OFFICE MARKET AALBORG

The office market in Aalborg is progressing despite a limited supply of newly built offices as well as uncertain market prospects and less favourable conditions. An important factor driving this development is record-high employment. At the same time, fears of lower de mand for office square metres, stemming from the increased ability of employees to work from home post-COVID-19 pandemic, have been mostly alleviated, as the effect has been relatively limited. Despite the continued high demand from users, the investment volume of office properties in Aalborg was historically low in 2023. This reflects the state of the overall commercial property invest ment market, which was generally challenged in 2023 due to chal lenging market conditions. Like most other major Danish cities,

demand is primarily focused on functional, flexible, modern and cost-efficient office leases. In particular, demand for multi-user properties has grown. Low vacancy rates and increasing rent levels After reaching the lowest vacancy levels in 11 years in end-2022, the vacancy rate for office spaces in Aalborg has been slightly increas ing up until Q1 2024; however, it is still at a low level in a historical context. Among other things, this is due to the fact that the supply of contemporary and adequately sized leases has not been able to keep up with the increasing demand. Further, rent levels have in creased in recent years, and the prime office rent in Aalborg current ly amounts to DKK 1,200 per sq m p.a.

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Employees in office-based businesses, Aalborg, 2012-2022 (index 100 = 2012)

115

KENNEDY ARKADEN

110

105

100

95

90

85

12

13

14

15

16

17

18

19

20 21

22

Source: Statistics Denmark, Colliers Note: Office-based businesses include IT, finance and insurance, real estate, marketing and public administration

Vacancy (%) and rent levels (DKK per sq m p.a.), Aalborg, 2012-2024

14%

1,400

12%

1,200

10%

1,000

8%

800

6%

600

4%

400

2%

200

0%

0

12 13 14 15 16 17 18 19 20 21

22 23 24

Secondary rent level (l.a.)

Vacancy (r.a.)

Prime rent level (l.a.)

Source: Ejendomstorvet, Colliers

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KENNEDY ARKADEN

RETAIL MARKET

The retail market has managed to make a comeback after the ef fects of the COVID-19 pandemic, the war in Ukraine and general eco nomic turmoil. Overnight, inflation hit a 40-year high, and interest rates climbed. As a result, consumer confidence suffered, with Dan ish households lowering their expectations of the future. Consumer confidence continued to be affected in 2023 by the gen erally uncertain economic outlook, but consumers seem to have brighter expectations for the future due to prospects of real wage growth as inflation edges down. 2023 thus turned out better for retail than many had predicted because of renewed growth in con sumer spending, and household spending is expected to recover to pre-COVID-19 levels.

cover the demand for real-life retail experiences in physical shops. Prime locations such as Kennedy Arkaden’s are perfectly positioned to cater to the increasing demands on multi-channel retailing and the overall shopping experience.

Although e-commerce is becoming an increasingly important factor in the Danish retail landscape, the pandemic made consumers redis

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Consumer confidence, 2014-2024

20

KENNEDY ARKADEN

10

0

-10

-20

-30

-40

14

15

16

17

18

19

20

21

22

23

24

Consumer confidence indicator

Source: Statistics Denmark, Colliers

Retail trade index, seasonally adjusted 2013-2023, (index 100 = 2015)

100 105 110 115 120 125 130

80 85 90 95

13

14

15

16

17

18

19

20 21

22

23

Source: Statistics Denmark, Colliers

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PRIMARY CATCHMENT AREA (15-minute drive)

124,000 people (estimate)

EXTENDED CATCHMENT AREA (30-minute drive): 307,000 people (estimate)

KENNEDY ARKADEN

Source: ArcGIS

Source: ArcGIS

LOCATION AALBORG

Aalborg is the largest city in North Jutland and the region’s primary growth centre with the entire North Jutland region as its catchment area.

Aalborg was formerly a traditional industrial city, known among other things for its distilleries as well as its cement, tobacco and shipbuilding industries. This majority of this industry has moved or completely shut down as a result of a long-term strategy that has transformed Aalborg from an industrial city into a modern, knowledge-based university city. This is particularly evident in the area around the campus of Aalborg University, which includes 14,805 full-time students and 3,800 employees. Aalborg University is also known and recognised internationally, particularly for its engineering pro gram, which has been named the best in Europe for six consec utive years according to U.S. News and the fourth best in the

world according to a report from the Massachusetts Institute of Technology (MIT). Further, Aalborg benefits from a well-func tioning regional airport, which means that the travel time to Copenhagen can be reduced to 45 minutes. In 2023, Aalborg Airport was voted Denmark’s best airport for the third time in a row. The Municipality of Aalborg comprises approximately 223,200 residents, making it Denmark’s third-largest municipality. Similarly, Aalborg is the principal city in the North Denmark Region, which includes approximately 593,150 inhabitants. In the last decade, the population of Aalborg has grown sig nificantly, particularly driven by the influx of young students.

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KENNEDY ARKADEN

Aalborg Airport

VODSKOV

AALBORG

STORVORDE

NIBE

SVENSTRUP J

STØVRING

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410 parking spaces

KENNEDY ARKADEN

Aalborg bus terminal

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Population growth and projection, Aalborg, 2014-2044 (index 100 = 2014)

KENNEDY ARKADEN

125

120

115

110

105

100

95

90

85

80

14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44

Danmark

Aalborg

Source: Statistics Denmark, Colliers

Going forward to 2044, continued strong population growth is expected in the munic ipality, especially for the age groups of 25-29-year-olds and 30-34-year-olds, i.e. the young working population and families with young children. Similarly, the oldest age groups are expected to see significant relative growth, resulting in the demographics of the city changing. While Aalborg will likely continue to be the primary growth centre in the North Denmark Region, the population in the rest of Northen Jutland is expected to stagnate or decrease. The transformation of Aalborg is clearly reflected in the development that the city’s buildings have undergone and continue to undergo. This is especially visible in the har bour areas, for example at Østre Havn, where new flats, office buildings and converted warehouses have replaced heavy industry. The Eternit area is now a harmonious combi nation of dwellings, offices and shops. The area’s former use is today only reflected by its name, which refers to the old factory that closed in 2005. The remaining heavy industry in Aalborg has today moved east of the city to Østhavnen where Aalborg’s commercial port is now located.

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KENNEDY ARKADEN

MICROL

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STRONG CONNECTIVITY

Being the former and new bus terminal in Aalborg, Kennedy Arkaden benefits from its central microlocation, which we assess to be a primary location for both the office and retail market in Aalborg. As Kennedy Arkaden is situated between the new bus terminal and Aalborg Station (railway), it connects the bustling city with the rest of Aalborg. In addition to optimal public transport options, parking is available at the Property.

KENNEDY ARKADEN

LOC A T ION

Due to its location, Kennedy Arkaden is highly visible to all passengers arriving by train or bus. Further, the public transport possibilities are an competitive edge for employees in both offices and retail stores at the Property. Despite the central location, Kennedy Arkaden is closely connected with the rec reational areas Kildeparken and Godsbanearealet, which are located west and south-east of the Property, respectively. Kildeparken or ‘Kilden’ is one of Aalborg oldest parks in the city and hosts several events such as Aalborg Carnival. Godsbanearealet, which includes new residential buildings and recreational areas in the centre of Aalborg, has been under development and is now considered a unique part of Aalborg. Due to its ideal location, the Property is exposed to a natural flow of potential cus tomers entering Aalborg not only by train or bus but also by car via the arterial roads Hobrovej and Østre Alle, ensuring easy access to the E45 motorway within an eight-minute drive from the Property. Jutland benefits from a well-developed motorway grid, making it relatively easy to reach all destinations in Jutland and the rest of Denmark. In addition, Aalborg Airport is located less than 8 km from the Property.

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Aalborg Station

KENNEDY ARKADEN

KENNEDY ARKADEN

LOCATION

Aalborg bus terminal

+ Prime city center location in the heart of Aalborg + Attractive catchment

area and superb connectivity to public transport

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Algade (pedestrian street)

Selected destinations and travel times

KENNEDY ARKADEN

AALBORG STATION AALBORG BUS TERMINAL 100 m 100 m 1 min. 1 min. On foot On foot AALBORG AIRPORT 4.0 km 7.7 km 8 min. 17 min. By car By car E45 MOTORWAY

Østre Alle

ALGADE PEDESTRIAN STREET

AARHUS

800 m 118 km 8 min. 79 min. On foot By car

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Kennedy Arkaden is located where the old Aalborg Bus Terminal was located and was built in connection with the new Aalborg Bus Terminal ​

KENNEDY ARKADEN

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KENNEDY ARKADEN DESCRIPTION

KENNEDY ARKADEN

The name Kennedy Arkaden is a combination of the address John F. Kennedys Plads, which was named in memory of the former American president, and ‘arkade’, which is an arch shaped opening in a construction.

The Property comprises a total area of 31,412 sq m, consisting of 13,023 sq m office, 7,679 sq m retail, 7,861 sq m parking area and an additional 2,848 sq m secondary areas for storage and technical use. The Property is shaped as an arch with a parking construction in the middle. The Property has four main entrances on the ground floor, enabling easy access to the centre. To the south, the main building has a shielded area for the delivery of goods. The main building, registered under title no. 107a Aalborg Markjorder, is a seven-storey building with concrete columns and beams. The Property has red brick facades and a flat roof in concrete elements, insulation and SBS roofing membrane. The building was constructed in 2004 and was renovated in 2020. The main building is divided into 43 commonhold units, of which commonhold unit no. 42 is subject to the Transaction. Further, the Property includes two buildings registered under title nos. 107b and 107e Aalborg Markjorder. The building on title no. 107b is an older two-storey building with facilities for bus drivers, offices and a canteen. The building on title no. 107e

is a garage building. Lastly, the surrounding area used as a bus station is also situated on title no. 107b.

The parking area is entered from a bridge linking the property from Østre Alle (O2). From the parking areas, visitors can gain access to Kennedy Arkaden via several entrances on multiple floors. Further, the Property has a cinema stretching from the first floor to the second floor 1 . The Property is heated with district heating and ventilated by 10 central air-handling units. All areas are covered by a central fire alarm system (ABA) with smoke alarms. From the latest technical due diligence, the Property is generally assessed to be in a good state of repair.

The Property contains a development potential consisting of up to 7,062 sq m potential building rights.

1 Not included in the Transaction

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KENNEDY ARKADEN

KENNEDY

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KENNEDY ARKADEN

ARKADEN

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Area specifications

KENNEDY ARKADEN

Areas Office Retail

Sq m Share

13,023 7,679 7,861 2,848 31,412

41% 25% 25%

Parking

Other (storage/technical)

9%

Total area

100%

N

Østre Alle

KENNEDY ARKADEN

Aalborg Busterminal

Entrance

Entrance

Jyllandsgade

Aalborg Station

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Key property facts

KENNEDY ARKADEN

N

John F. Kennedys Plads 1B, 1E, 1F, 1G, 1L, 1N, 1P, 1R, 1T, 1U and Jyllandsgade 2-4

ADDRESS

107 a

107a, 107b, 107d and 107e Aalborg Markjorder

TITLE NOS.

1-3 and 5-43 (title no. 107a Aalborg Markjorder)

COMMONHOLD UNIT NOS.

107 b

107 d

2004 (2020)

COMPLETION (RENOVATED)

107a: 8,919 sq m 107b: 12,159 sq m 107d: 1,085 sq m 107e: 2,085 sq m

SITE AREA

107 e

VISITOR COUNT - KENNEDY ARKADEN

31,412 sq m

TOTAL FLOOR SPACE

Million visitors

4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0

31

NO. OF TENANTS

410

NUMBER OF PARKING SPACES

C

ENERGY LABEL

DKK 100,454,000

PUBLIC VALUATION (PRELIMINARY)

2019

2020

2021

2022

2023

Intermittent lockdowns due to the COVID-19 pandemic

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KENNEDY ARKADEN

FLOOR PLANS

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TO SEE FLOOR PLANS​ CLICK ON THE SPECIFIC FLOOR

KENNEDY ARKADEN

OFFICE OFFICE OFFICE OFFICE OFFICE OFFICE OFFICE GROUND FLOOR RETAIL BASEMENT

.01 .03 .04 .05 .06 .07 .02 .0

-01

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TENANT OVERVIEW

KENNEDY ARKADEN

Kennedy Arkaden offers great income security from the diversified mix of strong and rep utable tenants. After a period of revitalisation, the centre is now performing well and has 99% economic occupancy. The anchor tenants in the office areas include the Municipality of Aalborg and Nordjyllands Trafikselsskab, as the Property is a part of the public transport hub surrounding the Property.

In addition to the strong office tenants, the ground floor of the Property is utilised with desirable retail tenants such as H&M, Imerco and Espresso House, while the parking area is let to Q-Park Operations Denmark. The Municipality of Aalborg accounts for almost half of the office rent and a total of 5,356 sq m ranging from the third to fifth floor. The tenant moved into the Property in 2004 and has extended the original lease with additional areas in 2006 and 2007. Nordjyllands Trafikselskab (‘NT’) has several facilities in the Property, and the rental income stems from office areas and a newly renovated service centre, including a waiting area and ticket sales on the ground floor. In addition, NT uses the out door area as a bus terminal. Further, NT occupies the facilities for bus drivers on title no. 107d Aalborg Markjorder. NT orig

inally entered into a 10-year contract at the end of 2019, but the lease has been extended in 2003, 2004 and 2005 with a non-terminability period until November 2034. NT’s lease com prises a total of 3,495 sq m and additional outdoor areas. As the Property has a significant share of parking facilities, con sisting of 7,861 sq m and 410 parking spaces, Q-Park Operations Denmark (‘Q-Park’) is considered a key tenant in the Property. Q-Park is one of the biggest parking companies in Denmark and offers parking on an hourly basis and different subscription options. Q-Park entered the lease in 2004, and the non-termin ability extends to the end of 2032.

MENY is part of Dagrofa ApS, which is one of the leading gro cery chains in Denmark. Dagrofa ApS has played a central role

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FLOOR SPACE BY CATEGORY

KENNEDY ARKADEN

PARKING 25%

GROCERIES 8%

FITNESS 4%

FOOD & BEVERAGE 4%

RETAIL 8%

OFFICE 41%

in the revitalisation of Kennedy Arkaden. MENY is established throughout Denmark, and the stores offer a wide assortment of products ranging from gourmet products to affordable neces sities. Further, MENY offers its customers one hour of free parking in the centre. The grocery store constitutes a total of 2,512 sq m, and in 2023, Dagrofa’s non-terminability period was renegotiated to April 2030. Established in 1947, Swedish-based H&M Group is one of the most popular fashion groups with more than 4,400 stores in 77 markets around the world. Over the years, the group has expanded, adding new brands such as COS, Monki, Weekday, ARKET and & Other stories. The H&M store in Kennedy Arkaden offers fashion for women, men and children and con stitutes 1,740 sq m.

PureGym was founded in 2005 under the name Fitness World. The chain is a prominent fitness chain based in Denmark and has grown to become one of the largest fitness centre chains in Scandinavia. At the Property, PureGym’s lease amounts to 1,337 sq m, and their non-terminability period ends in March 2032. In addition to to the key tenents mentioned, several tenants, sev eral tenants in the Property have a health care profile. Capio A/S is a private hospital, and the lease’s facilities consists of an MRI clinic and additional consultation rooms, operating rooms and bed sections. Capio A/S has a non-terminability period ending in March 2036. Lægerne Kennedy Arkaden is a medical practice with three doctors, two nurses and a secretary taking care of their 4,500 patients. Furthermore, there is an ophthalmologist, a specialist doctor and a pharmacy in Kennedy Arkaden.

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KENNEDY ARKADEN

FINANCIAL OVERVIEW

Kennedy Arkaden benefits from a diversified income base and stable returns, with 95% of the rental income being either contracted fixed rent or minimum/base rent.

Rental income As of 1 January 2024, the budgeted annual rental income of the Property totals DKK 32.9 million. This includes a minimal budg eted rental income of DKK 0.5 million from currently vacant units, primarily occurring from one vacant area being termi nated with moveout as per 31 January 2024. Most of the com mercial lease agreements carry a minimum indexation clause of 1.5-3.0% p.a. Currently, performance-based rent only accounts for less than 4% of the budgeted rental income. Operating costs Operating costs are largely recoverable from the tenants. Most tenants contribute on a proportionate the operating costs. Costs are distributed according to a weighted distribution. The only tenants that does not participate is H&M Hennes & Mauritz A/S, Pure Gym Denmark A/S, Deichmann-Sko ApS and a spe cialty doctor. The 2024 operating cost budget totals DKK 7.5 million, where DKK 4.5 million is recoverable by the tenants. As most of the commercial lease agreements are formalised as double-net contracts, the remaining net operating cost to be paid by the landlord are primarily related to external building maintenance and property management and totals DKK 3.0 million. The costs related to heating, water and cooling are gen erally considered cost neutral as they are paid by the tenants.

In relation to the heating and cooling accounts, the tenants are charged DKK 0.8 million for provisions related to the renewal of technical installations. Rental discounts Dagrofa ApS and Pure Gym Denmark A/S and Deichmann-Sko ApS have been granted moderate rental discounts, mainly in terms of rent regimes phasing in long-term stabilised rent, while the tenant Deichmann-Sko ApS has a rental discount expiring on 31 July 2024. As of 1 January, outstanding rental discount have been calculated at approximately DKK 1.1 million in total, which primarily stems from Dagrofa ApS and PureGym Denmarks A/S’ discounts. The rental discounts for PureGym Denmark A/S will have lapsed on 31 January 2025 followed by Dagrofa ApS on 31 March 2026. Deposits and guarantees Most tenants have provided either cash deposits or bank guar antees. The leases typically allow for a regulation of the depos ited amount so as to equal the respective number of months from time to time. As of 1 January 2024, cash deposits amount to DKK 3.4 million and guarantees amount to DKK 11.2 million. For further details, please refer to the financial data package provided with this IM.

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KENNEDY ARKADEN

YEAR 1

Rental income

DKK

DKK per sq m

Fixed rent

23,391,015

1,274

Minimum rent

7,829,566

752

Turnover-based rent

1,178,387

595

Vacancy rent

489,952

740

Total budget rent

32,888,920

1,047

Operating costs

DKK

DKK per sq m

Operating budget (non-recoverable) External building maintainance

1,052,750

34

1,059,780

34

Property administration

547,878

17

Property administration, parking

205,000

7

Total operating costs

2,865,408

91

Net operating income

30,023,512

956

DKK

Click here to access the FDP

Cash deposits

3,402,801

Note: All amounts are quoted in DKK. Based on the Sellers budget for 2024.

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KENNEDY ARKADEN

TRANSACTION STRUCTURE

The Transaction of Kennedy Arkaden or the Property, John F. Kennedys Plads 1B et al., DK-9000 Aalborg, title nos. 107a (com monhold no. 1-3, 5-43), 107b, 107d and 107e Aalborg Markjorder is expected to be structured as a traditional asset deal, and pro spective buyers will be granted access to complete virtual data room with all relevant information regarding the Property. The Property will be taken over in its present state and condition. If the buyer wishes to structure the Transaction as a share deal, demanding the Seller to establish a relevant SPV structure, the Seller is open to initiating a dialogue. Process The Seller has appointed Colliers to be the sole point of con tact during the sales process. Therefore, prospective buyers are kindly asked to direct all queries concerning this Investment Memorandum, Financial Data Package (FDP) and the Q&A ses sions to Colliers and to refrain from contacting the Seller or any officers, employees or other representatives of the Seller without the prior written consent of Colliers. Prospective buyers are invited to submit an indicative offer. Subject to satisfactory offers, selected buyers will be granted access to a virtual data room.

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KENNEDY ARKADEN

Commercial Real Estate Denmark P/S The Seller

100% Title no. 107e AALBORG MARKJORDER Title no. 107a Title no. 107b Title no. 107d

107 a

107 b

107 d

107 e

(Commonhold nos. 1-3 and 5-43)

PROPOSED TRANSACTION UNIT

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DISCLAIMER

KENNEDY ARKADEN

Colliers has been authorised by the Seller to issue this confidential sales material (‘the Material’) on the Property. The Material is intended for professional investors only, who are considered able to assess the risks associated with a transaction such as the Transaction. The Material is not approved for use by individuals or entities that are not the intended recipients, and unauthorised use may cause substantial damage to the Seller, Colliers or third parties, including parties that have expressed an interest in the Transaction. Unauthorised recipients of the Material are required to maintain confidentiality and are further requested to notify Colliers immediately and return or delete/destroy the Material inadvertently received. The information contained in the Material has been compiled to assist interested parties in making their own evaluation of the Transaction, but the Material does not purport to contain all the information that a prospective buyer may require. Interested parties are encouraged to conduct their own investigations and analyses of the data set forth in the Material. The contents of the Material have not been verified by the Seller, Colliers or any third party. No representation, warranty or undertaking – express or implied – is made or given by or on behalf of the Seller, Colliers or any third party in relation to the accuracy, completeness or fairness of the information contained in the Material or information made available in connection with any further investigations of the

Transaction, including any estimates or projections. Neither the Seller nor Colliers may be held liable for any misrepresentations contained in or omitted from this Material. The contents of the Material will not be updated. The Seller and Colliers are under no obligation to correct any inaccuracies identified in the Material. Minor inconsistencies may occur in data tables due to rounding. Colliers is not accountable to any other parties than the Seller for maintaining client confidentiality and providing advice in relation to the Transaction, the contents of the Material or any other transactions or arrangements referred to or contemplated in the process. The issue of the Material does not constitute investment advice by Colliers or establish a business relationship between Colliers and the Recipients. The issue does not include an offer or acceptance of any agreement. An offer for the Property will only constitute a contractual obligation if set forth and accepted in a final transfer agreement signed by the Seller. By retaining and using the Material, the Recipients acknowledge that the terms and conditions under which the Material is provided are governed by Danish law and accept the contents of this disclaimer. All communications, enquiries and requests for information relating to this Material or the Transaction are to be addressed to Colliers.

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CONTACTS

TRANSACTION ADVISORY TEAM

KENNEDY ARKADEN

CLAUS SONDRUP Senior Director | Aalborg +45 20 91 87 01 claus.sondrup@colliers.com

JEPPE EGHOLT Senior Associate | Aarhus +45 30 91 41 54 Jeppe.egholt@colliers.com

COPY, DESIGN AND SUPPORT

NANA KEIDING Graphic Designer, Design Team +45 22 21 75 12 nana.keiding@colliers.com

HELLE MERETE NÆSER Senior Project Coordinator +45 23 24 65 51 helle.naeser@colliers.com

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KENNEDY ARKADEN

Colliers International Investment Services A/S Toldbodgade 33 | DK-1253 Copenhagen K Østre Havnegade 20 | DK-9000 Aalborg