Yesterday ATP Real Estate announced the purchase of a 50% stake in Danica’s Shopping Centre portfolio. The total value of the portfolio is approx. 13.8 bn. DKK, and includes 16 shopping centers with a total area of approx. 400,000 sqm. and approx. 1,100 tenants. The portfolio contains some of the most attractive shopping centers in Denmark including Lyngby Storcenter and Frederiksberg Centret.

RED has assisted ATP with analyzing and valuating the individual centers. “It has been a very complex assignment, in which we have thoroughly analyzed a very comprehensive data set. Our focus has been on assessing the health and competitiveness of the individual centers on a long-term basis in a retail environment that is undergoing change,” says Jesper Anderson, Head of Valuation in RED.

In recent years, retail patterns have been changing as a consequence of eCommerce. Today shopping centers do not only have to contain a mix of various retailers and grocery stores. The shopper must feel entertained, which is why we already see that a larger part of the centers are used for Food & Beverage, cinemas and other functions that attracts consumers.

“In the coming years, centers that are centrally located in the cities, such as Frederiksberg Centret, will be the most sought-after by both investors and retail-tenants. We experience to a greater extent that the established retail-chains invest in both physical stores and a strong digital platform (Omnichannel strategy) and here the requirement is that you are located in the best situated centers, that are also ready to make the necessary investments to maintain and attract customers,” says Jesper Anderson.

The transaction is the largest Denmark has ever seen and is conditional of the approval of the Danish competition authorities.