Market Report 2022

Colliers Market Report 2022

10

Residential by far the largest segment

International investors predominate the market

Core assets continue to drive the market

2% Hotel 3% Other 8% Retail 13% I&L 18% Office 56% Residential

2% User 5% Opportunistic 21% Value-add 72% Core

46% Domestic 54% International

Note : Total transaction volume 2021, Denmark, by segment, investor origins and risk profile. Please also refer to Definitions, p. 115. Source : Colliers

transactions on account of record-high pricing. For instance, Savills IM has acquired two Jutland properties in Horsens in a sale & leaseback transaction with DKI Logistic as tenant at a total price of DKK 350 million. In brief, the market for indus trial and logistics property is robust as of year-start 2022, with investor demand right now at an unprecedented high. Retail potentially poised for comeback in 2022 The market for retail property continued to be marked by the wait-and-see approach that has prevailed in recent years. Uncertainty about the economic situation, repeated lockdowns and a market that continues to be straining under the impact of e-commerce growth have served to keep investors on the side lines. Because of the lack of investor demand, but also because

sellers were biding their time, being averse to selling with the current pricing and competitive situation, transaction activity was mainly driven by very few high-volume deals. In Herlev, big box/shopping centre hybrid BIG Shopping sold to M&G Real Estate at approx DKK 1.1 billion, while shopping centre Kronen Vanløse in a forced sale found a new owner in NREP. Because of the lack of activity and appetite that with some investors was becoming near-categorical in nature, the retail market has experienced less pronounced yield compression than the other segments of the property market in recent years. Once lockdowns and COVID-19 are things of the past, the current premium achievable when investing in retail prop erty will cause investors to flock back. Notwithstanding the

Part of Project Reditus portfolio