Project Grid
Project Grid_Pitch
Forside
Strictly confidential
Contents
16 Sales strategy and process design 21 Buyer universe 24 Price expectations 28 About Colliers 39 Fee proposal 45 Contact
03 Background and purpose 04 Core advisory team 05 Executive summary 06 Portfolio snapshot 11 The opportunity 13 Sales story
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Background and purpose
Background Aurora North (Aurora), represented by Kristian Foss and Hannibal Søberg, has asked Colliers International Investment Services A/S (Colliers) to provide a proposal for sell-side advisory services in relation to the possible exit of a portfolio of industrial and logistics properties (the Portfolio) held by Ares Management Corporations (the Seller or the Client). For the purpose of this presentation, we will refer to the possible transaction as Project Grid. The Portfolio comprises a total of some 229,000 sq m distributed on 18 properties, of which two properties are currently under construction with scheduled completions in H1 2024. All properties in the Portfolio are situated in Denmark in attractive and strategic locations with motorway proximity.
Purpose This presentation outlines Colliers’ recommendations and service offerings in connection with the possible sale of the Portfolio. To provide the Client with a good basis for decision-making, the presentation includes a introduction of the Portfolio, an assessment of the marketability of the Portfolio, an outline of the sales story as Colliers sees it, a recommended sales process design and timing, along with an estimated price expectation. Additionally, the presentation includes an overview of Colliers’ track record of successful comparable transactions, and a proposal for sell-side advisory services, should the Client decide to initiate a sale of the Portfolio.
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Core advisory team
Carsten Gørtz Petersen
Anders Holm
Kristian Axel Nielsen
Jakob Bagge
CEO | Partner
Director | Partner Capital Markets
Senior Director Capital Markets
Senior Associate Capital Markets
Team role
•
•
•
• •
Assistance in structuring, planning and management of the process.
Day-to-day project responsibility and client reporting.
Day-to-day project responsibility and client reporting.
Deal lead.
Overall project responsibility and client reporting. Contact and negotiation with relevant parties.
•
•
•
Leading the preparation phase (process material, VDR, etc.).
Structuring, planning and management of the process.
Structuring, planning and management of the process.
•
•
•
•
Coordination and management of the due diligence process.
Contact and negotiation with relevant parties.
Contact and negotiation with relevant parties.
Experience
8 years’ transaction and advisory experience: • Colliers International
8 years’ transaction and advisory experience: • Colliers International • Sadolin & Albæk
15 years’ transaction and advisory experience: • Colliers International • Sadolin & Albæk •
17 years’ transaction and advisory experience: • Colliers International • Sadolin & Albæk
DTZ (now Newsec Advisory)
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Education
•
•
•
•
MSc in Economics, University of Copenhagen
MSc in Management Accounting, University of Southern Denmark
MSc in Business Administration and Commercial Law, Aarhus University
Diploma of Business Studies, Aarhus Business College Chartered surveyor, MRICS
•
•
Chartered surveyor, MRICS
Executive summary
Key takeaways
Why Colliers?
#1 Capital Markets advisor in the Nordics +55% market share in Denmark (transactions >DKK 100m) 1 +30% market share in the Nordics (transactions >DKK 100m) 1
Project Grid scores high on all the requirements that we expect to be important to today’s I&L investors requiring a core+/value-add return profile
Despite the current environment, the I&L investment market remains relatively liquid and competitive, and we have seen multiple transactions recently
Exceptional track record of high-volume transactions, including I&L, in Denmark +55% market share of I&L transactions (>DKK 100m) 2
Strong interest anticipated from a relatively broad field of investors fronted by international core+/value-add investors (including multiple partnerships)
Advisory team of top-tier Capital Markets professionals Average core team industry experience of 11 years
Colliers has detailed knowledge of the Portfolio due to ongoing valuation assignments and strategic discussions with Aurora
Structured bidding process with 15-25 carefully selected investors recommended
Our local market knowledge, data and network are unparalleled to the great advantage of our clients +3,000 commercial advisory and valuation assignments annually
Soft testing of investors and parallel preparation of process material to be initiated ASAP
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Strong international investor network following years of being the local market leader in the Nordics +50% of all transactions are cross-border transactions
Estimated sales value in the range of DKK 1,675m (slightly negative) to DKK 1,851m (slightly positive)
1 Transactions >DKK 100m (2021-Q2 2023) according to Real Capital Analytics (RCA). 2 I&L transactions facilitated by broker >DKK 100m (2022) according to Colliers’ database.
PORTFOLIO
SNAPSHOT
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Portfolio snapshot
Properties 18 1
GLA 229,000 sq m
BREAKDOWN OF GLA BY LOCATION
BREAKDOWN OF GLA BY USAGE 2
0,4%
10%
13%
15%
37%
33%
25%
44%
22%
Light industrial
Manufacturing
Northern Jutland Central Jutland Triangle Region and Funen Capital Region
Logistics
Office
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Other
Notes: 1 Project Morse has been is included as one property, while Project Interior 2.0 and Project Shopping 2.0 are included in the count as individual properties. 2 Estimated by Colliers based on information from the Seller.
Note: Approximate location of the Properties. Colours indicate primary use: Light industrial Logistics Manufacturing
Portfolio snapshot
Year 1 budget (fully let)
I&L GLA (sq m)
Office GLA (sq m)
Other GLA (sq m)
Total GLA (sq m)
Number of tenants
Project name
City
NOI (DKKm)
% of total NOI
1 Project Shopping
Nørresundby
20,243
2,067
-
22,310
1
11.6
10.5%
2 Project Stainless
Silkeborg
7,586
843
-
8,429
1
5.0
4.6%
3 Project Freeze
Silkeborg
9,756
1,097
-
10,853
1
4.4
4.0%
4 Project Furniture
Hinnerup
5,589
949
-
6,538
1
2.9
2.6%
5 Project Spare
Brabrand
11,523
1,123
75
12,721
1
5.7
5.1%
6 Project Print
Horsens
27,765
2,895
137
30,797
1
18.2
16.5%
7 Project Windmill
Hedensted
15,168
594
-
15,762
4
6.4
5.8%
8 Project Highway
Hedensted
9,895
2,040
-
11,935
3
4.7
4.3%
9 Project Solutions
Horsens
2,734
980
-
3,714
1
1.7
1.5%
10 Project Interior
Ikast
7,374
1,125
-
8,499
2
3.2
2.9%
11 Project Robot
Odense
5,309
1,854
-
7,163
2
3.9
3.6%
12 Project Teddy
Middelfart
10,414
997
213
11,624
12
2.7
2.4%
13 Project Auto
Kolding
2,799
634
-
3,433
1
2.3
2.1%
14 Project Zink
Horsens
11,004
633
-
11,637
1
5.1
4.6%
15 Project Skate
Hinnerup
9,564
1,284
190
11,038
1
4.5
4.1%
16 Project Interior 2.0
Ikast
11,802
219
-
12,021
1
4.9
4.5%
17 Project Shopping 2.0
Nørresundby
9,534
3,205
294
13,033
1
7.4
6.7%
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18 Project Morse
Ballerup
15,013
12,602
36
27,651
21
15.6
14.2%
Total
193,072
35,141
945
229,158
54
110
100%
Portfolio analysis
The Portfolio offers geographical diversification. Similarly, lease situations and usages vary across the Portfolio. We have therefore analysed the Portfolio to determine if partial sales/sub-portfolios may be advantageous in terms of achieving price optimisation, transaction certainty, and process flexibility. Such an analysis will also benefit a soft-testing process, where the right path forward is uncovered. Colliers has analysed the Portfolio based on the following four criteria: • Primary usage • Geographic location • Volume • Risk profile The matrix on the right-hand side shows the findings of the portfolio analysis and is believed to qualify as basis for the choice of portfolio composition including potential sub-portfolios as well as the selection of properties that would potentially be relevant for individual (single-property) sales.
DKK 225 million
DKK 510 million
DKK 678 million
DKK 351 million
DKK 512 million DKK 418 million DKK 833 million
LOGISTICS MANUFACTURING LIGHT INDUSTRIAL
PRIMARY USAGE
Legends
The size of the bubble represents the volume of the estimated selling price of the property, while the colour of the bubble indicates the assessed risk profile of the property:
TRIANGLE REGION AND FUNEN
NORTHERN JUTLAND CENTRAL JUTLAND
CAPITAL REGION
Core
Value-add
Core+
Opportunistic
GEOGRAPHIC LOCATION
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Based on the portfolio analysis, Colliers recommends to market the Portfolio as one single portfolio.
Project Shopping
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Ballerup I-III Project Highway
Project Robot
THE
OPPORTUNITY
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Portfolio assessment
Location Overall, the properties in the Portfolio are located in some of the most highly coveted I&L areas in Denmark, with the micro location of individual properties generally characterised by easy access to the motorway grid, ensuring a swift connection to all parts of Denmark as well as Germany, Sweden and Norway.
Volume With a total GLA of some 229,000 sq m, Project Grid is an investment opportunity with significant scale. We expect it to attract substantial interest from reputable, mainly international, investors with an appetite for new investments, albeit some are cautious of taking on large-scale investments in the current market environment.
Sector The Danish I&L investment property market remains relatively liquid and competitive. The segment has attracted strong interest mainly from international investors in recent years. We expect the Portfolio to attract solid interest from a range of investors, with the most competitive investors requiring a core+ return profile.
Marketability rating:
Marketability rating:
Marketability rating:
Lease situation 92% of the Portfolio’s GLA is currently let and the portfolio WAULT is 4.8 years. Most tenants of the Portfolio are financially strong with operations anchored around the individual properties. Also, the Portfolio offers an attractive lease situation on a property level in terms of 12 single-tenant properties and 6 multi-tenant properties.
Building design The Portfolio benefits from a building design well-suited for current usages. Most properties are let to a single or few tenants, and scenarios involving reactivation via division for multiple users may be contemplated as lease terms expire. Most properties qualify for such a redevelopment, save possibly Project Print and Project Spare.
Sustainability ESG is top of mind in today’s market and criteria such as sustainability certification are becoming increasingly important and even strictly necessary for most investors. The Portfolio is expected to achieve a DGNB BiU portfolio certification making it superior relative to comparable portfolios in the segment.
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Marketability rating:
Marketability rating:
Marketability rating:
SALES
STORY
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Selected points in sales story (1/2)
Denmark is one of the strongest economies in the world and a safe-haven investment market
Industrial output levels remain high
1
2
180
160
140
120
100
80
11 12 13 14 15 16 17 18 19 20 21 22 23
Note: The 10 countries in the world with AAA credit ratings by the top-three international credit rating agencies.
Note: Seasonally adjusted production index, Danish industry, index 100 = 2015. Source: Statistics Denmark
Space shortage and high construction costs will prolong market rent uplift above inflation
Insourcing of production and storage spell sustained shortage of space despite high construction activity
4
3
600
10%
Record low vacancy rates
CAGR above inflation
8%
550
6%
500
4%
450
2%
400
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0%
350
11 12 13 14 15 16 17 18 19 20 21 22 23
17
18
19
20
21
22
23 E24 E25
Aarhus
Triangle Region
Greater Copenhagen
Actual market rent growth
Market rent if inflation-linked
Note: Vacancy rate in selected regions, 2011-2023. Source: Ejendomstorvet.dk
Note: Actual market rent growth vs. growth if linked to inflation. Source: Statistics Denmark, Colliers
Selected points in sales story (2/2)
High-quality assets with strong sustainability profile
Significant volume (platform) with potential for economies of scale
5
6
Aiming at DGNB BiU portfolio certification (in-place plan for net-zero carbon emission)
Secured, resilient and inflation-linked cash flows
Financially strong tenants with operations anchored around the assets
8
7
85% NPI-linked in place leases
4.8 years Portfolio WAULT
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~15% Rental income with +2.5% min indexation
6 months’ cash security
SALES STRATEGY AND PROCESS DESIGN
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Process approach
Colliers recommends a process approach where an initial investor long list is narrowed down by soft-testing the appetite of the investors ahead of entering the marketing phase, thereby reducing the field of prospective investors (short list).
Investor long list Colliers prepares a long list based on our experience from previous processes and general market knowledge .
1
40-50 investors
Soft-testing Colliers is testing the long-listed investors’ conceptual appetite (location, segment, volume, etc.) for the Portfolio based on high-level information.
2
15-25 investors
Marketing phase 15-25 investors are invited to the process, where the number of interested investors will naturally drop as they review the sales material and analyse the Portfolio.
3
5-10 investors
Indicative bids At the end of the marketing phase, we expect 3-5 investors to deliver indicative bids (potentially over two rounds), one of which is selected as the preferred investor to be granted exclusivity.
4
3-5 investors
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Exclusivity The preferred investor will during the exclusivity period conduct due diligence and the transaction documents are to be negotiated and ultimately signed, followed by closing at an agreed date.
5
Recommended process design and next steps
Structured sales process to optimise price, timing and general terms by means of increased competition Traditional marketing package (IM, FDP, etc.) with a specific deadline for offers and detailed bid instructions.
Anticipated field of 15-25 carefully selected investors based on preliminary soft-testing prior to process kick-off Suitable mix of domestic, Nordic and international core+/value-add investors.
W&I insurance may be considered to ensure a “cleaner” exit, making sales proceeds fully available at closing Taking out a W&I insurance will eliminate the need for escrow or other means of security / financial reserves.
Preparation of suitable VDD package may be considered to ensure that all red flags are raised before exclusivity All known red flags are clarified as early as possible to maintain process momentum and avoid loss of negotiation power.
Process design Next steps
ASAP: Initiation of process preparations to be ready to kick-off process shortly after soft-testing Notification to advisor team(s), compilation of documents, preparation of financial data package (FDP), etc.
Start-October: Soft-testing of investors to confirm the appetite for the Portfolio and narrow down the investor list Final short list of recommended investors is forwarded for the Seller’s approval before the process is initiated.
Post soft-testing (assuming positive feedback): ”Full speed ahead” with preparations followed by process kick-off Preparation of all process material, including VDD material (if any), and distribution of NDAs to selected investors.
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If unexpected feedback from soft-testing: Adjustment of sales strategy and process design to match investor appetite Clarification of potential sub-portfolios and re-launch of preparations according to new sales strategy and timeline.
Indicative process timeline (assuming positive feedback from soft testing)
December
January
February
March
November
October
Week
4041 424344454647484950 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13
Preparation
Kick-off meeting
Collection of documents and preparation of VDR
Approval of investor long-list
Soft testing, preparation of investor short-list and approval
Preparation of sales material and approval
Marketing
Distribution and negotiation of NDAs
Distribution of sales material (subject to signing of NDA)
Investor dialogue, investor presentations and property tours
Deadline for indicative bids
Evaluation of indicative bids and selection of preferred investor
Negotiation of HoT and granting of exclusivity
Due diligence and negotiation
Due diligence
Negotiation of transaction documents
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Signing of transaction documents
Closing (TBD)
Note:
= Process milestone
= Danish holiday period
Overview of key process material
NDA
Sales material • Investment memorandum • Financial data package • Process letter • Other relevant information (to be discussed)
VDR
To be signed by investors prior to distribution of sales material
Complete virtual data room (VDR) and Q&A-module
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Colliers| Proposal for advisory services | 21
BUYER
UNIVERSE
Introduction to buyer universe
We have prepared an investor long list as well as our view on the most likely indicative bidders.
For further information about Colliers’ recommendation for investor long list , please see separate Excel sheet.
40-50 investors
Based on the soft-testing, Colliers will prepare a recommended investor short list (to be approved by the Seller before the process is initiated).
15-25 investors
During the marketing phase, Colliers will keep track of all investor dialogues and share updated investor lists with the Seller on a regular basis.
5-10 investors
For further information about Colliers’ view on the most likely indicative bidders, please see the investor spotlight on the following pages (p. 23).
3-5 investors
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Colliers will prepare an overview of the indicative bids, which can assist the Seller in the selection of the preferred investor, which will be granted exclusivity.
Investor spotlight (most likely indicative bidders)
Investor
Key facts
General comments
Deal specific comments
•
Recently formed a new JV to aggregate small scale and high-growth industrial and logistics assets on a pan-European basis. Target to acquire ≈EUR 500m of GAV over the next two years (will be mainly capitalised by Starwood).
Origin: USA / UK Investor type: Investment manager / Asset manager
•
Can conceptually do a 50:50 split of any LCGT.
•
• Key contacts: Miles Chuter (Director, M7) and Michael De Bruyne (Starwood).
Source of funds: New JV AUM: EUR 108bn / 7bn
• •
A major focus on the Nordics.
Competitive bidder on Project Purple.
• Part of Blackstone’s Core+ investment strategy. • Primarily interested in light industrial and last mile logistics properties. • Ambition to do a swift scale up in the segment. • One of the most active investors within industrial and logistics in Denmark the past couple of years. • Competitive bidder on Project Purple. • JV with Patrizia ( ≈ 98%) as main capital contributor and Broadgate ( ≈ 2%) as active AM. • EUR +300m equity commitment to JV, targeting the Nordic urban industrial and logistics market. • Patrizia’s Trans-European Fund 8 is expected to have first close in Q4. • Already secured seed acquisition of a Swedish light industrial / last mile logistics portfolio (acquired on Patrizias own balance sheet, but will be transferred to Fund 8 once established). • Keystone Investment Management mandated to source Danish industrial and logistics properties for Partners Group with subsequent AM. • Keystone and Partners Group will formally form a JV with the former as minority equity partner. • Ambition to do a swift scale up in the segment and add exposure to the Danish market. • Competitive bidder on Project Purple.
Origin: USA / UK Investor type: Investment manager / Asset manager
•
Can conceptually do a 50:50 split of any LCGT.
• Key contacts: Alexander Simon (Managing Director with focus on Nordic opportunities), Francisco Vital (Principal, Blackstone) and Thomas Lauritsen (Country Director Denmark, Mileway).
Source of funds: BPPEH AUM: EUR 939bn / N/A
• Require a value-add return (+15% IRR) for the JV on an aggregated portfolio level. • Eager to scale up and gain significant presence in Denmark and willing to underwrite aggregation yield compression. • Key contacts: Michael Fynbo (Head of Danish Transaction, Patrizia), Jörg Laue (Nordic Head of Transactions, Patrizia) and Richard Wollter (CEO, Broadgate).
Origin: Germany / Sweden Investor type: Investment manager / Asset manager Source of funds: Trans-European Fund 8 (value-add) AUM: EUR 58bn / N/A
•
IRR-target of +15%.
Origin: Switzerland / Denmark Investor type: Investment manager / Asset manager Source of funds: Value-add vehicle AUM: EUR 135bn / EUR 4bn
• Scale and location might lower target as Nordic exposure is sought after to diversify fund allocation. • Can conceptually do a 50:50 split of any LCGT. • Key contacts: Johan Johanssen (Partners Group) and Thomas Mølhave (CIO. Keystone).
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PRICE
EXPECTATIONS
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Valuation method and assumptions
Valuation method All properties in the Portfolio have been valued by applying a 10-year DCF-model in order to capture the value of e.g. minimum indexations above expected inflation. Operating budgets in year 1 Based on the financial data package provided by Aurora, Colliers has forecast the net operating income (fully let) in year 1, assuming that year 1 runs from 1 March 2024 to 29 February 2025. The market rent for the vacant units has been estimated by Colliers assuming typical TIs. The Portfolio comprises several tenancies with different months of rent regulation, while, as mentioned, some tenants have agreed to minimum rent indexations above expected inflation. The projections of rental income in year 1 factor in these terms and are based on an assumed inflation of 2.00% in year 1. Based on the assumptions above, the estimated rental income in year 1 (fully let) is estimated at DKK 115 million, of which DKK 8.15 million is vacancy rent. Owner’s share of operating expenses in year 1 is estimated at DKK 4.65 million. As a result, the NOI in year 1 (fully let) can be calculated at DKK 110 million.
General assumptions for the cash flows Considering that most properties in the Portfolio have one or few tenants as well as residual non terminability, cash flows have been projected based on the following assumptions:
• Actual rent has been applied for all tenants until the expiry of their non-terminability term.
• Post non-terminability period, the rent is assumed to be renegotiated to the estimated market rent, while the non-terminability term is extended by an additional 3-5 years. • Annual inflation is estimated at 2.0%. Opex, actual rent without or with minimum indexation below 2.0%, and market rent is indexed annually with this rate.
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Breakdown of price expectation (base case)
DKKm
2.000
1.800
DKK 1,763m
DKK 225m
1.600
DKK 132m
DKK 80m
1.400
DKK 77m
DKK 83m
1.200
DKK 36m
DKK 39m
DKK 61m
DKK 47m
DKK 29m
1.000
DKK 73m
DKK 84m
DKK 272m
800
600
DKK 103m
DKK 51m
400
DKK 89m
DKK 62m
DKK 219m
200
Colliers| Proposal for advisory services | 26
0
Shopping
Stainless
Freeze
Furniture
Spare
Windmill
Highway
Solutions
Interior
Robot
Teddy
Auto
Zink
Skate
Interior 2.0
Shopping 2.0
Morse
Total
Summary of price expectations
Value considerations Considering where we are in the market cycle at present, we expect the prospective buyer universe to be relatively broad fronted by international core+ and value-add investors. Colliers’ sum-of-parts valuations assume that the interest of an aggressive core+ investor is captured. Furthermore, based on recent trading trends and ongoing sales processes, it is Colliers’ assessment that the outcome of Project Grid will depend on: • Investor perception of portfolio premium relative to individual purchase portfolio aggregation, considering easier and faster capital deployment, reduced use of internal resources and lower deal costs
• Selecting the right process design at the time when the Property is put on the market
• Creating the right sales story and targeting the right investors
• If market consensus is that interest rates have peaked.
As the market is currently characterised by low transaction activity and some degree of uncertainty, we have quoted a price interval denoting the value of the Portfolio in three scenarios, reflecting the slightly negative to the slightly positive scenario, based on an assumed Q4 2023 sales process with expected closing in Q1 2024.
Summary of gross asset value estimates
SLIGHTLY NEGATIVE
SLIGHTLY POSITIVE
BASE CASE
Colliers| Proposal for advisory services | 27
DKK 1,675m 6.84% NIY DKK 7,309/SQ M
DKK 1,851m 6.16% NIY DKK 8,078/SQ M
DKK 1,763m 6.47% NIY DKK 7,693/SQ M
ABOUT
COLLIERS
Colliers| Proposal for advisory services | 28
About Colliers
5 Offices
+160 Experts
~40% Market share
Colliers Nordics Colliers in Denmark
~30% Market share
+500 Experts
4 Countries
66 Countries
+18,000 Experts
4.5 billion dollar Global revenue
Colliers| Proposal for advisory services | 29
Colliers worldwide
Number of countries includes affiliates.
Market share Nordic
Transactions >DKK 100m (2021-Q2 2023) according to RCA Market share, sell-side advisory, Nordics
Colliers
32%
CBRE
19%
C&W
11%
32%
JLL
11%
Nordics
Catella
8%
New
48%
Nordano
7%
Finland
Norway
Newsec
4%
27%
Others
3%
Sweden
Savills
3%
59%
Eastdil
2%
Colliers| Proposal for advisory services | 30
Source : Colliers / Real Capital Analytics
Denmark
Capital Markets team Nordic
Nordics
Bård Bjølgerud Head of Capital Markets
Norway
Denmark
Sweden
Finland
Erik Høvik Head of Capital Markets
Matti Ahrelma Head of Capital Markets
Peter Winther Head of Capital Markets
André Lundberg Head of Capital Markets
Roar Ingdal Director
Elias Wiklund Associate
Mikko Koskinen Director
Christina Kämpe Director
Christian Sahlström Associate Director
Kristian Axel Nielsen Senior Director
Carsten Gørtz Petersen CEO | Partner
Victoria Tichit Associate Director
Alexander Frønsdal Associate
Sanna Lamminpää Director
Sofie Babic Associate
Thomas Andersson Director & Partner
Anders Holm Director & Partner
Frederik Møllebjerg Senior Director
Frida TosterudGrov Associate Director
William Ødegård Analyst
Aleksi Lindqvist Analyst
Fredric Gylling Associate
Andreas Friberg Director & Partner
Søren Lindbjerg Director
Andreas Brandt Director
Vetle H. Johansen Associate Director
Andreas Fiskum Associate
Mathilda Ingelgård Associate
Martin Schollin Director & Partner
Niklas Christensen Senior Associate
Søren Skovbjerg Manager
Linn Källum Analyst
Joachim Svedberg Director & Partner
Debt Advisory
Project Finance
Jakob Bagge Senior Associate
Nicolai Thygesen Senior Associate
Arnstein Rød Managing Director & Partner Viktor Myhre Associate Director & Partner
Terje A. Pettersen Managing Director & Partner
Fredrik Angelin Director
Mario Ishak Analyst
John Stene Director & Partner
Julia Bergqvist Director
Erik Oom Analyst
Sondre A. Skjerven Associate Director
Ola Aukan Velund Associate
Max Bartholdsson Associate Director
John Petersson Analyst
Dino Ligonja Associate
Susanna Gunnå Associate Director
Christofer Pool Wiklund Analyst
Daniella Svensson Analyst
Philip Kouvatsis Senior Analyst
Professionals 54
Colliers| Proposal for advisory services | 31
Debt Advisory
Viggo Bekker Ståhl Managing Director & Partner
Service lines Capital Markets
Corporate Finance (ECM) • Mergers & Acquisitions (M&A) • IPOs and buyouts • Equity capital raising • Corporate restructuring
Property transaction • Sell-side and buy-side • Single assets and portfolios • JV/partnership structures • Forward deals
Capital Markets
Financing (DCM) • Debt advisory • Financial restructuring • Debt capital arrangements for M&A • Debt capital raising strategy
Research and valuation • Full Nordic coverage • Customised analyses • Commercial buy-side advisory • Valuations
Project finance • Buy-side advisory
Strategic advisory • Feasibility studies • Site selections • Best-use analyses • Hold/exit strategies
• Equity and debt placements • Structuring and execution • Business management
Colliers| Proposal for advisory services | 32
Colliers Denmark Capital Markets
Transaction volume by property agent >DKK 100m transactions, sell-side advisory
DKK 30bn
DKK 25bn
DKK 20bn
DKK 15bn
DKK 10bn
DKK 5bn
DKK 0bn
Colliers| Proposal for advisory services | 33
2015
2016
2017
2018
2019
2020
2021
2022
Colliers Broker 1 Broker 2 Broker 3 Broker 4
Danish market position within I&L Colliers
Colliers’ role in top 10 transactions in Denmark
Share of Danish I&L transaction volume
Only I&L transactions from 2022 included in overview
>DKK 100m transactions, sell-side advisory
Price, DKKm
Colliers’ role
Project
Sq m
Buy-side advisor
× × ×
132,000
Confidential
Hedeland II, III & IV
132,000
Confidential
N/A
DanLog portfolio
83,700
Confidential
N/A
Project Imperial II
2022
151,000
Confidential
N/A
Project Skylight
56%
Sell-side advisor Sell-side advisor Sell-side advisor Sell-side advisor Sell-side advisor Sell-side advisor
113,000
601
Project Lacus
31,900
333
Nova 4
31,900
328
Nova 5
26,000
Confidential
System Transport
Colliers
Competitor 1
Competitor 2
Competitor 3
Competitor 4
Others
Colliers| Proposal for advisory services | 34
31,500
Confidential
Project Print
28,000
Confidential
Industriparken 1-2
Source : Colliers
Source : Colliers
Selected references Industrial and logistics
DAFA Group (sale-leaseback)
Nova VI
Project Purple (ongoing DD)
Exclusive sell-side
Exclusive sell-side
Sell-side
2023
2023
2023
Address: Multiple (Greater Copenhagen) Buyer: Confidential
Address: Lille Gedved 1, DK-8700 Horsens Buyer: Confidential
Address: Holmstrupgårdsvej 12, DK-8220 Brabrand Buyer: SF Management
Price: Confidential
Price: Confidential
Price: Confidential
Seller: AKF
GLA: 83,300 sq m
Seller: DKI Logistics
GLA: 31,700 sq m
Seller: DAFA Group
GLA: 16,000 sq m
Designa Kitchen (sale-leaseback)
Sysselvej 67
Project Lacus
Exclusive sell-side
Exclusive sell-side
Exclusive sell-side
2022
2022
2022
Colliers| Proposal for advisory services | 35
Address: Multiple (primarily Jutland) Buyer: Arrow Capital Partners
Address: Sysselvej 67, DK-7120 Vejle Øst Buyer: Verdion
Address: Industrivej 1-2, DK-8620 Kjellerup Buyer: Vika
Price: DKK 601m
Price: Confidential
Price: DKK 161m
Seller: Pristine
GLA: 112,800 sq m
Seller: System Transport A/S
GLA: 26,300 sq m
Seller: Designa Kitchen Group
GLA: 28,000 sq m
Selected references Industrial and logistics
Project Print
Nova V
Nova IV
Exclusive sell-side
Exclusive sell-side
Exclusive sell-side
2022
2022
2022
Address: Egeskovvej 20, DK-8700 Horsens Buyer: Catena AB
Address: Egeskovvej 24, DK-8700 Horsens Buyer: Catena AB
Address: Saturnvej 65, DK-8700 Horsens Buyer: The client
Price: DKK 333m
Price: DKK 328m
Price: DKK 245m
Seller: DKI Logistics
GLA: 31,900 sq m
Seller: DKI Logistics
GLA: 31,900 sq m
Seller: AP Pension
GLA: 30,700 sq m
Project Somnium
Project Freeze
Advansor
Exclusive sell-side
Exclusive sell-side
Exclusive sell-side
2022
2022
2022
Colliers| Proposal for advisory services | 36
Address: Rosbjergvej 7A, DK-8220 Brabrand Buyer: Pareto Securities
Address: Linåvej, DK-8600 Silkeborg Buyer: The client
Address: Fabriksvej 13, DK-7760 Hurup Thy Buyer: Middelfart Ejendomsinvest
Price: DKK 158m
Price: DKK 78m
Price: DKK 130m
Seller: Private investors
GLA: 13,500 sq m
Seller: Private investors
GLA: 11,000 sq m
Seller: Niam
GLA: 33,600 sq m
Selected references I&L portfolios outside Denmark
Alta portfolio (Sweden)
Zeus (UK)
Javelin (UK)
Exclusive sell-side
Exclusive sell-side
Sell-side
2023
2023
2023
Address: Multiple Buyer: P3
Address: Multiple Buyer: Barings
Address: Multiple Buyer: Patrizia / Broadgate
Price: DKK 750m
Price: DKK 1,350m
Price: Confidential
Seller: Segro
GLA: N/A
Seller: NFU Mutual
GLA: N/A
Seller: Alta Fastigheter
GLA: 37,000 sq m
Revolution (Germany)
Nationwide portfolio (Sweden)
Greater Stockholm portfolio (Sweden)
Exclusive sell-side
Exclusive sell-side
Exclusive sell-side
2023
2023
2023
Colliers| Proposal for advisory services | 37
Address: Multiple Buyer: NREP/Logicenter
Address: Multiple Buyer: Axa
Address: Multiple Buyer: Alliance
Price: DKK 1,267m
Price: DKK 1,565m
Price: DKK 1,417m
Seller: Kilenkrysset/Bockasjö
GLA: 120,000 sqm
Seller: NREP/Logicenter
GLA: 170,000 sq m
Seller: ICG
GLA: N/A
Selected references Other recent high-profile transactions
Galleri K
Project Death Star
Project Nacre
Exclusive sell-side
Exclusive sell-side
Exclusive sell-side
2022
2022
2022
Address: Multiple, Copenhagen and Aarhus (portfolio) Buyer: OCP
Address: Multiple, Copenhagen, Lyngby, Odense and Aarhus (portfolio) Buyer: Peek & Cloppenburg Price: DKK 4,400m (indicative) Seller: ATP & PensionDanmark GLA: 135,000 sq m
Address: Pilestræde 6, etc., DK-1112 Copenhagen K Buyer: Jeudan
Price: DKK 4,800m (indicative)
Price: DKK 2,200m (indicative)
Seller: NREP
GLA: 110,000 sq m
Seller: Aviva/PSP
GLA: 25,000 sq m
Portland Towers
Svanemølleholm
Project Day
Exclusive sell-side
Exclusive sell-side
Exclusive sell-side
2021
2022
2021
Colliers| Proposal for advisory services | 38
Address: Multiple, across Denmark (portfolio) Buyer: Cibus
Address: Nordsøvej 15, etc., DK-2150 Nordhavn (Copenhagen) Buyer: KanAm Grund Price: DKK 3,825m Seller: AP Pension GLA: 75,000 sq m
Address: Göteborg Plads 1, DK-2150 Nordhavn (Copenhagen) Buyer: Hines Price: DKK 700m Seller: ATP / PFA / PensionDanmark GLA: 13,750 sq m
Price: DKK 2,080m
Seller: SG Nordic
GLA: 76,000 sq m
FEE
PROPOSAL
Colliers| Proposal for advisory services | 39
Colliers’ services
Colliers offers to head the overall preparation, structuring and execution of the transaction. The workstreams and services generally fall into three main phases as set out below.
Preparation phase
Marketing phase
DD and negotiation phase
• Overall structuring and planning of the sales process, including a detailed time schedule with specific milestones for all parties involved. • Structuring of complete virtual data room, including collection and review of all relevant material in this connection – in close cooperation with the Client’s legal advisor. • Advice, coordination and assistance in preparing potential vendor due diligence and other relevant process documentation. • Advice, coordination and assistance in connection with a potential W&I tender process. • Preparation of sales material, usually comprising NDA, teaser, IM, financial data package and process letter. • General advice in relation to other relevant matters such as transaction structure, tactical sales process design, bid instructions, etc.
• Distribution, negotiation and signing of the NDA by potential investors – in close cooperation with the Client’s legal advisor. • Overall management of the sales process and investor dialogue based on the agreed sales process design and the approved sales material. • Facilitating and leading investor presentations, property tours and similar with potential investors during the marketing phase. • Support potential investors in their evaluation and underwriting of the opportunity, including strategic bid guidance. • Advice in the evaluation of bids received and choice of next steps, including selection of preferred investor with whom to proceed.
• Negotiation of HoT, including a detailed timeline for the completion of the transaction. • Overall structuring, planning and coordination of the DD phase, including facilitation of additional property tours, Q&A sessions and similar. • Management and gatekeeping of the virtual data room and Q&A process. • Strategic advice and assistance in the negotiation phase, including assistance in the final SPA negotiations. • Assistance as required in the completion of the transaction and communication with relevant stakeholders in this connection.
Colliers| Proposal for advisory services | 40
Fee proposal
No cure, no pay We take pride in the fact that we always work on a true ‘no cure, no pay’ fee principle with no hidden retainers, no abortive fees and no reimbursement of various out-of-pocket expenses. Colliers pays all costs relating to the preparation of the marketing/process material, including professional photos, copy, design and printing of materials. However, the Client is expected to pay directly for costs associated with any legal, technical and financial/tax advice in relation to the proposed transaction. Proposed fee structure Upon a successful sale of the Portfolio, Colliers is entitled to a success fee consisting of a base fee up to an agreed threshold value (base fee) plus a potential incentive-based fees (kicker): 1) Base fee of 0.35% of the agreed value of the properties in the Portfolio up to a threshold value of DKK 1,763m 2) Kicker of 5.00% of the part of the agreed value of the properties in the Portfolio that exceeds DKK 1,763m If the transaction is structured as share deals as anticipated, the basis of the calculation of the fee shall be the agreed value of the properties in the Portfolio as stated in the closing balances. If the LCGT is not fully recognised in the closing balance, the amount ‘saved’ will be added to the property value when calculating the fee. Furthermore, the fee will in this instance be exempt from Danish VAT.
Colliers| Proposal for advisory services | 41
Full advisory team (1/2)
Carsten Gørtz Petersen CEO | Partner Aarhus, Denmark
Anders Holm Director | Partner Capital Markets Aarhus, Denmark
Søren Skovbjerg Manager Capital Markets Copenhagen, Denmark
Gregers Rasmussen Head of Research
Valuation & Advisory Copenhagen, Denmark
Kristian Axel Nielsen Senior Director Capital Markets Copenhagen, Denmark
Thora Nielsen Senior Project Coordinator Capital Markets Copenhagen, Denmark
Ieva Glasius-Nyborg Manager, Design Team Copenhagen, Denmark
Jakob Bagge Senior Associate Capital Markets Copenhagen, Denmark
Colliers| Proposal for advisory services | 42
Core team
Support team
Full advisory team (2/2)
Edward Plumley Director EMEA Capital Markets London, England
Bård Bjølgerud CEO Nordics & Partner Oslo, Norway
André Lundberg Head of Capital Markets & Partner Stockholm, Sweden
Luke Dawson Head of Global and EMEA
Capital Markets London, England
Christian Kadel Head of International Capital Markets Frankfurt, Germany
Erik Høvik Head of Capital Markets Oslo, Norway
Matti Adrelma Head of Capital Markets Helsinki, Finland
Colliers| Proposal for advisory services | 43
Nordic team
EMEA team
Project Auto
Project Print
Colliers| Proposal for advisory services | 44
Project Freeze
Colliers
| 45
Contact
Carsten Gørtz Petersen CEO | Partner Aarhus, Denmark +45 28 19 66 71 carsten.goertzpetersen@colliers.com
Colliers| Proposal for advisory services | 45
Copenhagen Toldbodgade 33 DK-1253 Copenhagen K Aarhus Søren Frichs Vej 38A DK-8230 Åbyhøj Odense Cortex Park 12 DK-5230 Odense M Aalborg Østre Havnegade 20 DK-9000 Aalborg
Vejle Dandyvej 3B DK-7100 Vejle
colliers.com +45 70 23 00 20
Colliers| Proposal for advisory services | 46
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