Project Westfield

PROJECT WESTFIELD

Danish residential LEASE LEGISLATION

RENT REGULATION In Denmark, private rental properties are regulated by the Danish Rent Act (‘lejeloven’). MARKET RENT The provisions of the Danish Rent Act concerning rent regulation may be deviated from when the tenancy concerns a residential unit in a property taken into use after 31 December 1991 or a residential unit which was lawfully and exclusively used for commercial purposes as of 31 December 1991. The same applies to flats and single rooms on newly added floors for which a building permit has been is sued after 1 July 2004. The rent charged for these tenancies may be set at the market rent, i.e. according to supply and demand. Solrød and Greve are unregulated municipalities but as the properties are constructed in 2022 and 2023 (ex pected), respectively, it will not affect the rent charged. The residential rent for the entire portfolio can be set at market rent, i.e. according to Section 54 of the Danish Rent Act.

Obligation to offer tenants ownership

Under Danish law, the landlord must offer certain prop erties to the tenants on market conditions if the prop erty is sold to a third party. This also applies if the com pany holding the title of the property is sold. The above obligation only applies to residential proper ties with six or more residential units or at least – if it is a mixed-use property – 13 residential units.

The obligation does not apply to properties which are divided into commonhold units such as Skjeberg Allé.

If the tenants accept the offer, the third party original ly intended to buy the property must accept the ten ants’ pre-emptive right, and the property is sold to the tenants. In a double-holding transaction structure, the obliga tion to offer the Properties to the tenants most likely does not apply.

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