Project Pecunia Teaser

PROJECT PECUNIA

Homogeneous Danish high-volume residential portfolio investment

Highly attractive locations in high-growth districts of Copenhagen

€

6

Virtually non-existent residential vacancy in central Copenhagen locations supports sustained demand AAA-rated Denmark offers an attractive investment environment with inexpensive financing opportunities

Strong potential for value increment, subject to modernisation of residential units Six trophy properties with total GLA of 21,300 sqm, including 14,900 sqm residential and 6,400 sqm commercial

€

LOCATION COPENHAGEN - THE PREMIER GROWTH CENTRE OF DENMARK

1

22%

24%

awarded the most liveable city in the world in 2016 by Metropolis Magazine

of the population aged 15+ are highly educated relative to the national average of 9.8%

projected population growth by 2045 relative to national average of 9%

DENMARK

Aalborg

Aarhus

Vejle

Copenhagen

Esbjerg

Odense

PROJECT PECUNIA PORTFOLIO

The Portfolio comprises six prime properties offering second-to-none cash-flow certainty and significant value increment potential. All properties are mixed-use residential and commercial properties, with commercial units mainly consisting of ground-floor retail units. In terms of GLA (Gross Lettable Area), the residential units account for 70% of the Portfolio. Residential units are generally let at rents significantly below market rent level. It is possible to tap into very substantial rent reserves by means of modernising units as they are vacated in order to re-let them at higher rent levels. Originally, Jyske Bank A/S (the Seller) operated banking services from all properties. Today, there are remaining branch offices in all properties but one (no. 3, see table below). As part of the proposed transaction, Jyske Bank A/S will remain tenant in five commercial units, taking a gross lease carrying three-year tenant non-terminability (and a proposed ten-year landlord non-terminability) with rent indexation in step with NPI.

1

2

3

6

4

5

No.

GLA

Rental income Actual rent

Opex Total

NOI

Resi

Comm Total

Resi

Comm Total

Year 1

(sqm)

(sqm)

(sqm)

(DKK/sqm/p.a.)

(DKK/p.a.) (DKK p.a.) (DKK p.a.)

1

3,649 1,270 1,778 2,257 1,847 4,107

1,599

5,248

786 991 961 567 799

1,440 5,169,712 1,180 2,271,854

1,488,520 3,681,192 675,730 1,596,125 806,257 1,360,971 1,023,644 1,941,618 702,884 1,575,960

2 3 4 5 6

859 556

2,129

2,334 3,310

825

2,167,228

1,053

1,600 2,965,262 1,717 2,278,844

468

2,315

1,891

5,998

911

1,210 6,028,599 2,366,408 3,662,192

Total

14,908 6,426 21,334 827

1,331 20,881,501

7,063,443 13,818,057

Triple-A rated economy Known for its attractive investment environment, Denmark tops the World Bank’s list for ‘Ease of Doing Business’ and is one of only nine countries worldwide to enjoy AAA credit rating.

Buoyant residential market

Strong Copenhagen population growth drives demand for new residential accommodation to an extent which newbuilding activity has been unable to match in the past ten years or so. As a result, residential rental and ownership prices alike have soared. Newbuilding activity has picked up pace, but will not be sufficient to close the gap of accumulated undersupply in the foreseeable future. Continued supply/demand imbalance in Copenhagen housing market (sqm space)

Stable economy, with currency pegged to EUR

DKK

Record-low interest rate level

0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000

Strong economic growth momentum, 2% in 2017*

Efficient mortgage bank system offering inexpensive financing

9 10 11

12 13 14 15 16 17 E18 E19

DKK

Annual completions

Annual increase in demand

Sources: Statistics Denmark, Byggefakta and Sadolin & Albæk

*Source: Danske Bank

Sales process outline The Seller of the Portfolio intends to structure the sale of all properties but one as asset deals. The sale of one asset (no. 6, see table on p. 3) is to be structured as a share deal involving the transfer of all shares in the SPV, which holds a significant amount of deferred tax. Subject to their signing a non-disclosure agreement (NDA), prospective buyers will be granted access to an Investment Memorandum, a preliminary virtual data room as well as site visits. A structured sales process is scheduled to commence at end-March 2018 with targeted signing in mid-June 2018. All properties are subject to tenants pre-emption right and accordingly, targeted closing is end-September 2018.

For more information, please contact Sadolin & Albæk, Copenhagen

Peter Kaalund Højland Petersen Consultant

Peter Winther Partner, CEO

Kristian A. Nielsen Senior Consultant

T: +45 61 71 14 10 E: php@sadolin-albaek.dk

T: +45 28 19 66 76 E: pw@sadolin-albaek.dk

T: +45 31 44 14 42 E: kan@sadolin-albaek.dk