Argentum

INVESTMENT MEMORANDUM

Strictly confidential

PROJECT ARGENTUM

OCTOBER 2017

CONTENTS

Introduction

3

Investment highlights

7

The Properties

9

Portfolio summary

10

Fairway House

12

Algade

22

Sundhedshus Vanløse

32

G4S Danish headquarters

40

PROJECT ARGENTUM

IBM Danish headquarters

50

Transaction structure

63

Danish economy

58

Lease abstracts

65

Contacts

70

Disclaimer

71

2

Economic occupancy

94.1%

90% 5

Of the actual rent value has at least 2% indexation

Number of buildings

Number of tenants

32

PROJECT ARGENTUM

Stabilised NOI 49.9 MDKK

Portfolio WALT

Total GLA

3.31 years as of 1 January 2018, incl. notice period

46,316 sqm

3

PROJECT ARGENTUM

Fairway House

4

INTRODUCTION

High-volume office portfolio with top-tier corporate tenants, located in the premier growth centre of Denmark

The Seller intends to structure the proposed transaction as a share deal. A structured bidding process commences in October 2017, targeting closing by Q1 2018. Prospective buyers are granted access to a preliminary virtual data room where full lease schedules in spreadsheet format and other key documentation will be made available. Prospective buyers are invited to submit indicative bids in late November 2017. For further information on the bidding process, including preliminary time schedule, please refer to the process letter that accompanies this Memorandum.

We are pleased to offer the Project Argentum Portfolio for sale, a portfolio of high-quality office properties predominantly located in Greater Copenhagen and let to top-tier corporates like IBM, Q8, Nestlé, G4S, Nordea Bank and Regus. Sadolin & Albæk A/S has been retained as sell-side adviser by Niam Denmark A/S, acting on behalf of Niam Core-Plus Denmark Holding AB (the Seller) on the proposed sale of K/S Niam Core Plus 1 and K/S Niam Core Plus 2 (the SPVs), the special-purpose vehicles owning the five properties included in the Project Argentum Portfolio (also the Portfolio or the Properties). The sale is also referred to as the proposed transaction. The purpose of this Memorandum is to set out the details of the Properties and the SPVs to assist interested parties in making their own assessment of the proposed transaction.

PROJECT ARGENTUM

5

PROJECT ARGENTUM

6

Fairway House

INVESTMENT HIGHLIGHTS

€

Diversified cash flow With two multi-tenant and three single-tenant o ce properties housing a total of 32 tenants representing a large variety of industries, the Portfolio generates a highly diversified cash flow. The robustness of the Portfolio is underpinned by slightly di…erent Property profiles such as the modern and e cient Fairway House, the state-of-the-art Danish IBM headquarters in picturesque surroundings and the centrally located shopping and o ce area Algade in Roskilde. €

Danish high-volume o ce portfolio Five high-quality o ce properties comprising a total GLA of around 46,000 sqm provide an estimated stabilised NOI of DKK 49.9m p.a. The Portfolio currently boasts an economic occupancy rate of above 94% and generates actual rental income of DKK 48.9m p.a. There is still some potential to bu… rental income, e.g. by hiking underrented areas like Nestlé’s, leasing vacant areas and converting o ces into residential units on Algade.

Blue-chip tenants The Portfolio enjoys strong income security with top-tier multinationals like IBM, Q8, Nestlé and G4S accounting for the vast majority of the rental income. The robust banks, Nordea and Arbejdernes Landsbank, together with the public entity, Københavns Ejendomme, ensure additional income security as occupiers on Algade and at Sundhedshus Vanløse. Of the Portfolio’s financially sound anchor tenants, six are part of companies boasting investment grade credit ratings or with public ownership.

Favourable outlook for the Greater Copenhagen o ce market As the Danish economy has accelerated in recent years, displaying solid GDP growth and rising employment particularly in the knowledge industries, occupier demand for o ce space has risen. As a result, the Greater Copenhagen o ce market is seeing improved vacancy rates and uptrending rental rates. The Portfolio is well positioned to take advantage of the positive outlook for the occupational o ce market.

PROJECT ARGENTUM

Excellent investment conditions Boasting AAA rated government bonds and a solid economy, Denmark is considered a safe haven and one of the most stable regions for investments in Europe. Another factor reducing investment risk is the DKK-EUR peg. In addition, the liquid and e cient Danish bond-backed mortgage system provides for highly competitive financing opportunities.

Outstanding accessibility With well-connected locations in the individual submarkets, the Properties are easily accessible via private and public transportation. Located near Copenhagen, the properties can be reached in less than 25 minutes’ drive, Algade within 45 minutes, and four out of five properties have metro or train stations less than 10 minutes’ walk away.

7

Frederiksværk

DENMARK

Aalborg

Aarhus

Hørsholm

Allerød

Vejle

Copenhagen

Esbjerg

Odense

IBM HQ

Birkerød

Lynge

Frederikssund

Gerlev

Farum

Lyngby

Veksø

Jyllinge

Skibby

Gentofte

Ballerup

Sundhedshus Vanløse

Copenhagen

GS4 HQ

PROJECT ARGENTUM

Glpstrup

Algade 14-18

Roskilde

Høje Taastrup

Fairway House

Hvidovre

Kastrup

Dragør

Køge

Fairway House Address: Arne Jacobsens Allé 7, DK-2300 Copenhagen S Anchor tenants: Nestlé, Regus, Q8 Danmark GLA: 15,662 sqm Actual rent: DKK 16.7m p.a., averaging DKK 1,212/sqm Stabilised rent: DKK 19.1m p.a., averaging DKK 1,221/sqm WALT: 2.93 years Economic occupancy: 87% Algade Address: Algade 14-18, DK-4000 Roskilde Anchor tenants: Nordea, Arbejdernes Landsbank GLA: 9,737 sqm Actual rent: DKK 9.9m p.a., averaging DKK 1,225/sqm Stabilised rent: DKK 10.5m p.a., averaging DKK 1,080/sqm WALT: 3.51 years Economic occupancy: 95%

Sundhedshus Vanløse Address: Indertoften 10, DK-2720 Vanløse Single tenant: Københavns Ejendomme GLA: 6,946 sqm

Actual rent: DKK 7.4m p.a., averaging DKK 1,107/sqm. Stabilised rent: DKK 7.5m p.a., averaging DKK 1,074/sqm WALT: 4.22 years Economic occupancy: 99% G4S Danish headquarters Address: Roskildevej 157-159, DK-2620 Albertslund Single tenant: G4S Security Services GLA: 8,630 sqm Actual rent: DKK 9.6m p.a., averaging DKK 1,108/sqm

PROJECT ARGENTUM

NOTE: Rent as at 1 January 2018. WALT includes notice period. 9 PROJECT ARGENTUM PORTFOLIO

WALT: 4.29 years Occupancy: 100%

IBM Danish headquarters Address: Kongevejen 495b, DK-2840 Holte Single tenant: IBM Danmark GLA: 5,341 sqm Actual rent: DKK 5.2m p.a., averaging DKK 965/sqm WALT: 1.00 year Occupancy: 100%

PORTFOLIO SUMMARY

Counting five predominantly office properties, Project Argentum is a close-to-stabilised portfolio with over 94% economic occupancy. Comprising a total of 46,316 sqm with properties ranging from 5,341 sqm to 15,662 sqm, the Portfolio is well-diversified in terms of size. The Portfolio currently generates actual rent of DKK 48.7m p.a. with an estimated stabilised rent of DKK 51.8m. Adjusted for the landlord’s operational expenses, investors will achieve an NOI of an estimated DKK 49.9m once the portfolio is fully stabilised. The largest properties in the Portfolio, Fairway House and Algade, are multi-tenanted properties with strong anchor tenants accounting for the majority of the rental income. A modern, prime-office building, Fairway House offers a multitude of shared amenities to tenants in addition to efficient and flexible office spaces. A mixed-use property, Algade offers retail space at street level as well as office, storage and two residential units. Three domicile buildings are home to Vanløse’s health centre, Sundhedshus Vanløse, and the Danish headquarters of blue- chip tenants G4S and IBM. Sundhedshus Vanløse serves as a health and rehabilitation centre and accommodates a broad range of doctors and health professionals, which are subtenants to the main tenant, Københavns Ejendomme.

With a long history dating back to 1982 when the Property was first constructed, Roskildevej is home to G4S and has been expanded and modernised over the years. With ample parking opportunities on and near the property, it is well suited for the company’s activities in private and corporate security. The IT giant IBM has selected Kongevejen as its Danish base. Originally constructed as the ISS global headquarter, the state- of-the-art property offers stunning views over a nature reserve and provides a prominent setting for hosting clients in the IBM Client Center. Located near major roads and highways and in close proximity to public transportation, the properties’ excellent infrastructure stands out. From central Copenhagen, the properties can be accessed within a 25-minute drive and Algade in 45 minutes. Of the 46,316 sqm, 3,788 sqm are vacant. The vacancy is a mix between prime office space in Fairway House, regular office space in Algade and storage areas in Algade and Sundhedshus Vanløse. Lease negotiations for the vacant office space in Fairway House are at an advanced stage. As regards Algade, it is worth considering the development potential associated with a conversion into residential usage, dividing the Property into individual properties and pursue separate divestments to e.g. local investors.

PROJECT ARGENTUM

Portfolio

Building area

Vacancy

Economic occupncy

Stabilised rent (est.)

Landlord opex Stabilised NOI

Property WALT

Actual rent

(Years)

(sqm)

(sqm)

(%)

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

(DKK p.a.)

(DKK p.a.)

(DKK p.a.)

Fairway House

2.9 3.5 4.2

15,662 9,737 6,946

1,899

84% 16,678,757 95% 9,949,953 99% 7,391,860 100% 9,564,209 100% 5,155,351 94% 48,740,130

1,065 1,022 1,064

19,120,807 10,511,290 7,459,360

121,758

18,999,048 9,546,225 7,154,944

Algade

1,618

965,065 304,415

Sundhedshus Vanløse

271

G4S HQ IBM HQ

4.3

8,630

0 0

1,108

9,564,209

360,842 109,934

9,203,367 5,045,417

1.0

5,341

965

5,155,351

The Portfolio 3.3

46,316 3,788

51,811,016

1,862,015 49,949,001

10

FINANCIALLY STRONG ANCHOR TENANTS

Parent credit rating / equity

Actual rent

Non- terminalibility*

Parent company

Property

Anchor tenant(s)

(DKK p.a.) (% of total)

Nestlé Denmark A/S Nestlé S.A.

AA- (S&P)

6,942,853 3,253,078

42% 20%

May 2022 Jan 2022

Fairway Centre ApS (Regus)

IWG plc

DKK 6.5bn equity balance sheet AA (State of Kuwait)

Fairway House Copenhagen S

Q8 Danmark A/S

50/50 ownership by the State of Kuwait (AA) and OK ekonomisk förening

2,904,093

17%

Oct 2019

Nordea Bank AB Arbejdernes Landsbank A/S

AA-

4,341,463 1,570,609

44%

June 2023

Algade Roskilde

DKK 5.7bn equity balance sheet

16%

Sep 2023

Sundhedshus Vanløse G4S HQ Albertslund

Københavns Ejendomme

Public entity

7,391,860

100% Mar /Jun 2022

G4S Security Services A/S

G4S plc

BBB- (S&P)

9,564,209

100%

Jan 2022

IBM HQ Holte

IBM Danmark ApS IBM

A+ (S&P)

5,155,351

100%

Nov 2017

PROJECT ARGENTUM

11

FAI RWAY HOUSE

12

Fairway House

Fairway House

KEY FACTS

Built in 2012, Fairway House (the Property) is a state-of-the- art o¢ce building catering to the needs of today’s occupiers, o¤ering sustainability level B and a full HVAC system. Comprising some 15,700 sqm, the Property features 9 floors including a mezzanine and a basement with storage rooms, the latter let to individual tenants. The Property enjoys the “best of both worlds” in terms of having both picturesque surroundings and great connectivity. Set on the border of Amagerfælled, a nature reserve, the Property boasts stunning views over the green common, o¤ering employees the opportunity to enjoy a walk, run or bike ride. With Nordic design lounge areas, a well-equipped kitchen and spacious canteen along with common meeting facilities accommodating up to 300 people, the amenity-rich, double- height ground floor provides an impressive entrance to the Property. A manned reception desk welcomes guests to the Property while guiding them to the right floor thereby ensuring maximum security and comfort. Averaging a size of some 2,300 sqm, the second to seventh floors are occupied by a variety of tenants and feature various types of layout, both open-plan o¢ces and predominantly cell o¢ces. With a flexible and narrow building depth of 16 metres at most, ceiling heights of 4+ metres combined with floor-to-ceiling windows, tenants enjoy great daylight inflow and e¢cient space utilisation, right down to the last square meter. Featuring a slightly smaller footprint of 1,591 sqm, the basement includes 932 sqm of rent-bearing area for tenant storage. In addition, the basement holds the building’s technical installations.

Fairway House

Property Address

Arne Jacobsens Allé 7 DK-2300 Copenhagen S 383 Eksercerpladsen, København

Postal code/city

Title no.

2012

Construction year

B

Energy label

3,595 O…ce

Site area, sqm

Main uses

Nestlé, Regus, Q8 Danmark

Anchor tenants

88%

Occupancy

2.93 years

WALT

FAI RWAY HOUSE

13

Connected to a large residential complex, the Property benefits from the shared courtyard and garden Located adjacent to both the Field’s shopping centre and a parking facility, the Property enjoys easy access to parking. No parking is included in the Property itself. Managed by the tenants themselves, the mandatory tenant association runs all shared amenities including the reception desk, conference centre, canteen, refuse collection, bicycle parking and external cleaning and maintenance of the Property and the grounds.

KEY FINANCIALS As per 1 January 2018

Actual rental income, DKK p.a.

16,678,57

30,450

- hereof income from parking/antenna

Total operating costs, DKK p.a.

121,758

Operating cost budget 2017*

Tenants' share

Costs (DKK)

Gross

Net

Stabilised rental income, DKK p.a. (est.)

19,120,807

Site and building taxes

3,552,000 3,552,000

0

Refuse collection

180,000 180,000

0

- hereof vacancy rent

2,442,050

Property insurance

118,000 118,000

0

Contribution, owners' assoc.

271,500 271,500

0

Stabilised net operating income, DKK p.a.

Heating, water, electricity etc.

154,500 154,500

0

18,999,048

Cleaning, janitor etc.

327,000 327,000

0

FAI RWAY HOUSE

Alarm and surveillance

330,000 330,000

0

Facility Manager & common areas

228,000 228,000

0

15,662

Total GLA, sqm

HVAC, installations, elevator

286,000 286,000

0

- hereof o¢ce GLA

14,730

External maintenance (est. DKK 30 per sqm)

469,860 217,000 252,860

- hereof storage/ basement GLA

932

Property man. (est, 1.5%)

286,812

0 286,812

IN TOTAL

6,203,672 5,664,000 539,672

In total per sqm

396

362

34

1,899

Vacant space, sqm

Capital allocation for technical installations**

670,000 -335,000

Capital allocation for heating supply system**

165,828 -82,914

Public valuation (tax assessment value), DKK

273,000,000

Total including capital allocations

6,203,672 6,499,828 121,758

54,615,200

- hereof site value, DKK

*Information according to owner’s budget for 2017 ** Capital allocations are included with 50%

14

Floor plan ex. 6th floor

Q8 1,814 sqm

Grunental Nordic HQ Pharma 506 sqm

Common included

In total 2,320 sqm

FAI RWAY HOUSE

15

Copenhagen Opera House

City centre

Nordea Denmark HQ

DR Byen

University of Copenhagen

AC Hotel Bella Sky

Mercedes Denmark HQ

HOFOR

Sweco HQ

Metro station

Bella Conference Center

Royal golf club

Bella Kvarter, new mixed-use development

Byparken

FAI RWAY HOUSE

Parking

Fairway House

Amagerfælled nature reserve

Cabinn hotel

16

LOCATION ØRESTAD

The Property is located in the Copenhagen district of Ørestad, where development activity has been ongoing sinde the early 1990s, picking up speed in recent years. Today, Ørestad is home to multi-storey residentials, terraced houses, o¢ce buildings, Denmark’s largest hotel, Bella Sky, along with several other hotels, a regional shopping centre, the Bella Center exhibition centre and educational institutions. In 15-20 years, depending on the rate of development, Ørestad is expected to comprise some 3.1 million sqm gross floorspace in total. Ongoing construction schemes include the new Danish headquarters of Nordea, the largest bank in the Nordics, and Swedish Sweco, to accommodate some 3,250 workplaces in total. Once fully developed, Ørestad is expected to accommodate roughly 80,000 workplaces or student places and some 25,000 residents. In February 2017, the Royal Arena opened a mere 2-minute drive from the Property. Royal Arena is a large-sized multi-purpose arena with the capacity to seat some 16,000 people. Apart from being the venue for a string of major concerts, the Royal Arena is scheduled to host the 2017 European short-course swimming championship in December this year as well as the 2018 ice hockey world championships. The backbone of Ørestad is the highly developed infrastructure of the district, o¤ering as many as six Metro stations, a train station providing regional rail links as well as connections to Sweden, swift motorway access and short proximity to Copenhagen Airport, CPH, Scandinavia’s largest airport. The Property overlooks the nature reserve of Amagerfælled, a 40-ha large, green zone just 2.5 km from the Copenhagen city centre.

VM Mountain, award winning resi complex

Novo Nordisk, Dell

Zurich

AstraZeneca

FAI RWAY HOUSE

Signalhuset student housing

Novartis Accenture

Bayer

Fairway

Metro station 100 m

Uptrending prime rents in the Ørestad district (DKK per sqm p.a.)

Field’s shopping centre

1600

1400

1200

1000

800

600

400

200

0

06 07 08 09 10 11

12 13 14 15 16 17

17

Source: Sadolin & Albæk

Prime

Secondary

Tenant mix With an overweight of multinational companies occupying Fairway House, the Property has proven to meet the high demands of such tenants when it comes to e.g. o¤ering modern and e¢cient space, flexibility, security, location and amenities both within the Property and in the neighbourhood. Accounting for some 42% of the actual rental income, Nestlé Denmark A/S is the largest tenant with some 300 full-time employees on about 6,500 sqm of o¢ce space in Fairway House. A wholly-owned subsidiary* of Nestlé S.A., a world leader in food and drinks and boasting an impressive AA credit rating from Standard & Poor’s (S&P), the blue-chip tenant ensures a very secure cash flow. With a rental rate of just some DKK 1,100 per sqm, the premises are somewhat underrented and o¤er room for hiking the rent in the future. With a 20% share of actual rental income, Fairway Centre ApS (Regus), o¤ers flexible workspace under the Regus brand. A subsidiary of the world leader in flexible workspace, International Workplace Group* plc (IWG plc, formerly Regus plc), the Group has almost 3,000 locations globally and an annual turnover of some DKK 20bn. The company leases an entire floor and is home to a variety of smaller occupiers as well as a business lounge. Making up 17% of the rental income, the third largest tenant is Q8 Denmark A/S, the petroleum company ultimately 50% owned by the state of Kuwait through Kuwait Petroleum International* (KPI) and 50% by Swedish OK ekonomisk förening*. With a DKK 4.1bn annual turnover and DKK 95m profit in Denmark alone, the company is financially very sound.

FAI RWAY HOUSE

Other occupiers include Grünenthal Denmark ApS, part of the German pharmaceutical company Grünenthal Group (DKK 10bn revenue p.a.), Nordkranen A/S, a Danish property development company and PPD Denmark, a subsidiary of Pharmaceutical Product Development (rated B2 by Moody’s). Finally, Comcare A/S, an e-procurement adviser, WorkPoint A/S (moves in in March 2018) and Nordik Supply ApS are smaller tenants of the Property.

*The holding company does not provide a parent company guarantee for the lease.

18

FAI RWAY HOUSE

19

Lease schedule

Deposits and prepaid rent

No

Tenant

Usage

Floor

Area

Actual rent

(sqm)

(DKK total p.a.) (DKK/sqm p.a.)

(DKK)

1

Nestlé Denmark Nestlé Denmark

Office

2nd, 3rd, 4th floors Basement, room 2,5,9 + 10

6,008

6,694,525

1,114

0 0

Storage

443

248,330

561

2

Fairway Centre (Regus) Fairway Centre (Regus)

Office

5th floor

2,377

3,151,346

1,326

1,552,387

Storage

Basement, room 3 + 4 1st and 6th floors Basement, room 7A

200

101,731

509

25,057

3

Q8 Danmark Q8 Danmark

Office

1,987

2,870,328

1,445

1,393,363

Storage

60

33,765

563

16,391

4

Grünenthal Denmark Grünenthal Denmark

Office

6th floor

506

760,265 42,070 717,078 715,664 645,190 407,279 167,995 92,742 30,450

1,502

194,444

Storage

Basement, room 7B

77

546

297

5 6 7 8 9

Nordkranen

Office Office Office Office Office Office

2nd floor 7th floor 4th floor

507 506 507 349

1,414 1,414 1,273

0

PPD Denmark

347,410 316,269 197,709

Expeditors Denmark

Comcare

1st floor

1,167

WorkPoint*

Ground floor Ground floor

156

1,077

81,949

10

Nordik Supply TT-Netværket

80

1,159

45,020

11

Antenna

Roof

7,500

12 13 14 15 16

Vacant Vacant Vacant Vacant Vacant

Office Office

7th floor 7th floor

901

0 0 0 0 0

FAI RWAY HOUSE

846

Storage Storage Storage

Basement, room 6

94 29 29

Basement

Basement, room 8

IN TOTAL

15,662 16,678,758

1,065

4,177,797

* WorkPoint has terminated the lease and will relocate 31-03-2018 ‘**Various lease commencement dates

20

Lease Commencement

Non- terminability

Rent adjustment

Month

Min.

Max.

General

Tenant

Notice

January January

2.0 % 2.0 %

1 Jun 2014

31 May 2021 31 May 2021

12 mts 12 mts

Tenant negotiations concerning the 7th floor are in the advanced stages

1 Jun 2014**

January January

NPI NPI

23 Jan 2012

1 Aug 2017 6 mts

1 Jan 2012

3 mts

January January January January January January January January January January January January January January January January

3.0% 5.0% 3.0% 5.0%

NPI NPI NPI NPI NPI NPI NPI NPI NPI NPI NPI

1 May 2014 1 May 2014 2 Jan 2014 1 Jan 2014

1 May 2019 6 mts 1 Nov 2016 6 mts

3.0% 3.0% 3.0% 3.0% 3.0% 2.5% 3.0%

6 mts 6 mts

1 Nov 2010 30 Nov 2017 6 mts

1 Jul 2011

1 Jan 2016 6 mts 1 May 2017 6 mts 1 Oct 2018 6 mts 1 May 2017 9 mts 31 Jul 2018 6 mts 1 Jul 2019 12 mts

2.0% 4.0%

10 May 2012 1 Oct 2015 1 Feb 2015 1 Feb 2013 1 Jul 2014 1 Nov 2016

FAI RWAY HOUSE

1 Jul 2015

1 May 2016 1 Jan 2015 1 Jan 2016

21

ALGADE

22

Algade

Formerly serving as the headquarters of the now bankrupt Roskilde Bank, Algade 14-18 (the Property) is a prestigious mixed-use retail/o¢ce landmark property located in the high-street area of Roskilde. The Property spans two sites and comprises a total GLA of some 9,737 sqm, with the buildings at Algade 14-16 accounting for 6,027 sqm and Algade 18 for 3,710 sqm. Located in the prime high-street area of Roskilde, the retail units enjoy the natural footfall of people passing by without compromising the accessibility for the o¢ce tenants. In addition, accessibility to both retail shops and o¢ces is supported by excellent parking facilities behind the Property and in the nearby side streets. Algade 14-16 is the largest building, constructed in 1973 and extended in 2001 by adding a rear building. The front building features a redbrick facade and a three-piece roof. The middle part of the roof is slanted and covered with black tiles, the rest is flat felted roofing. The rear building features a yellow brick façade with large floor-to-ceiling window panes and roofing partially covered with red tiles and roofing felt. The building has three floors in addition to basement. Facing Algade, the ground floor, which is larger than the other two floors due to an extension at the back, features a mix of retail space and customer-oriented areas for two banking sector tenants. The ground floor of the rear building features mixed-use retail/o¢ce space, used by two real estate agents. On the first and second floors of the building, the layout is mainly open-space o¢ces with some smaller single o¢ces and numerous meeting rooms. Both floors are fully let to the Property’s anchor tenant, Nordea Bank AB. The lease includes access to a rooftop terrace with a

KEY FACTS

Algade

Property Address

Algade 14-18, Hersegade 1 et al., St. Gråbrødrestræde 1A et al.

DK-4000 Roskilde 56a and 54a Roskilde Bygrunde

Postal code/city

Title no(s).

1890/1973/2001

Construction year

B

Energy label

4,806

Site area, sqm

O…ce, retail (bank) Nordea, Arbejdernes Landsbank

Main uses

Anchor tenants

ALGADE

83%

Occupancy

3.51 years

WALT

23

magnificent view. In addition to storage space and bank vaults, the basement includes an underground parking facility holding 43 parking spaces. In addition, the Property has 22 onground parking spaces. Algade 18 comprises four adjoining buildings, constructed between 1890 and 2001, the latter date marking the year of construction of the part located at the corner of Hersegade and Store Gråbrødrestræde. The four buildings are constructed of di¤erent materials, featuring mainly yellow brick facades and slanted, tiled roofing. The building features a mix of ground-floor retail units facing Algade, Hersegade and Store Gråbrødrestræde and multiple o¢ces on the first and second floors. In addition, the building facing Algade houses two residential units on the second floor. Behind the buildings, there is a few onground parking spaces.

KEY FINANCIALS As per 1 January 2018

Actual rental income, DKK p.a.

9,949,953

- hereof income from parking/antenna

302,430

Total operating costs, DKK p.a.

965,065

Stabilised rental income, DKK p.a. (est.)

10,511,290

Operating cost budget

- hereof vacancy rent

565,100

Costs (DKK)

Gross Tenants' share

Net

Site and building taxes

1,366,882 1,211,550 155,332

Stabilised net operating income, DKK p.a.

ALGADE

9,546,225

Other taxes and dues

1,788

1,585

203

Refuse collection

118,750 107,414 11,336

Property insurance

91,750 81,294 10,456

9,737

Total GLA, sqm

Heating, water, electricity etc.

405,000 360,108 44,892

Cleaning, janitor etc.

553,750 492,692 61,058

6,772

- hereof o¢ce GLA

Service agreements

276,250 244,800 31,450

1,854

- hereof storage/basement GLA

Misc, Maintenance and repairs

187,500 164,044 23,456

Parking costs

25,000

21,873

3,127

Preparation of property accounts External maintenance (40 DKK per sqm)

24,035

0 24,035

1,618

Vacant space, sqm

389,492

389,492

Public valuation (tax assessment value), DKK

Property management (2.0%)

210,129

210,129

127,000,000

IN TOTAL

3,650,325 2,685,361 964,965

In total per sqm

375

276

99

13,165,000

- hereof site value, DKK

Note: Information according to owner

24

Development potential The Property’s vacant area consists of both office areas and basement areas. Vacant office areas account for 837 sqm of the Property’s total vacancy and consist of the three units on the first and second floors of Hersegade 1 and Store Gråbrødrestræde 1. All of the vacant office units are considered very suitable for residential conversion, potentially resulting in as much as eight additional residential units with an average size of approximately 100 sqm.

ALGADE

Holbæk motorway

O2 ring road

Sjællands University Hospital

Føtex

O1 ring road

Roskilde bus station

Roskilde train station

ALGADE

Gråbrødre Cemetary

Fitness World

Algade 18

Algade 14-16

Humac

Jyske Bank

Eventyrsport

3

Pedestrian street

Telia

26

LOCATION ROSKILDE

The Property is located in the city centre of Roskilde, 30 km west of Copenhagen. With a population of some 50,000, Roskilde is the 10th largest city in Denmark and a regional centre for business and education, e.g. Roskilde University. Algade is part of the high-street area in Roskilde, a highly popular shopping venue featuring two centrally located pedestrian streets complete with restaurants, cafés, and a variety of shops. The Property is located in the historical part of the city known for its UNESCO-listed Gothic cathedral, completed in 1275. Also other tourist attractions, including the Viking Ship Museum and Roskilde’s annual rock festival, attract more than 100,000 visitors annually. By car, it is a 40-minute drive via the Holbæk Motorway to the Copenhagen city centre. The Property is located only 200 metres from Roskilde station, the oldest operational railway station in Denmark, with connections across Zealand as well as with Falster, Lolland, and Jutland. The local airport opened in 1973, mainly serving light aircraft for business use and flight instruction.

ALGADE

The local area has good parking facilities, e.g. at Allehelgensgade or in the Onepark carpark at Algade/Læderstræde.

VUC Roskilde

O…ce rents in Roskilde remain stable (DKK per sqm p.a.)

Algade, Roskilde

1400

Café Vivaldi

Lagkagehuset

Jack & Jones

1200

1000

YouSee

800

Zleep Hotel

600

400

200

0

06 07 08 09 10 11

12 13 14 15 16 17

Source: Sadolin & Albæk

Prime

Secondary

Tenant mix Combined, only two tenants account for nearly 60% of current rental income, viz. Nordea Bank AB (approx. 44%) and Arbejdernes Landsbank (approx. 16%). Nordea Bank AB Originally the result of a merger between Finnish Merita Bank and Swedish Nordbanken in 1997, Nordea adopted its current name in 2000 following the merger with Danish Unibank. Today, Nordea is the largest bank in the Nordic region with a sta¤ of some 32,000. In 2016, Nordea Bank AB had an equity balance of approx. DKK 241bn and reported net earnings of some DKK 28bn after tax for the year. The company has AA- credit rating reported by Fitch.

Arbejdernes Landsbank Founded as a limited company in 1919 by di¤erent unions and cooperative companies, the bank is today headquartered in Copenhagen and employs some 1,000 sta¤ to service about 250,000 clients. In 2016, Arbejdernes Landsbank had an equity balance of approx.

DKK 5.7bn and reported net earnings of DKK 419m after tax for the year.

Floor plan, ground floor Algade 14-16 / Hersegade 2-6

ALGADE

Arbejdernes Landsbank 566 sqm

Nordea 576 sqm

Tøjeksperten 382 sqm

Lokalbolig 190 sqm

Danbolig 249 sqm

In total 1,963 sqm

28

Hersegade 6

Hersegade 1E

Store Gråbrodre- strade 1A

Hersegade 4

Hersegade 1C-D

Algade 14

Hersegade 1A-B

Algade 16

Hersegade 2/ Algade 16

ALGADE

Algade 18

29

No

Tenant

Usage

Floor

Area

(sqm)

1

Nordea Bank Danmark

Office

Algade 16, 1st and 2nd floors

2,964

Nordea Bank Danmark

Retail

Algade 16, ground floor

650

Nordea Bank Danmark

Basement

Algade 16, basement

550

Nordea Bank Danmark

Office

Store Gråbrødrestræde 1A

221

Nordea Bank Danmark

Parking

Algade 16, parking

Nordea Bank Danmark

Parking

Algade 16, parking

2 Lease schedule

Arbejdernes Landsbank

Office

Algade 14, ground floor

630

Arbejdernes Landsbank

Basement

Algade 14, basement

134

3

Tøjeksperten Egebjerg

Retail

Algade 16, ground floor

378

Tøjeksperten Egebjerg

Basement

Algade 16, basement

244

4 5 6

Danbolig Roskilde

Retail

Hersegade 6 A-B

285

Telenor

Retail

Algade 18, ground floor

95

Stender II

Retail

Algade 18, ground floor, right side

118

Stender II

Basement

Algade 18, basement

82

7 8 9

Lokalbolig

Retail

Hersegade 4

193

Lili-Marleen

Retail

Hersegade 1A, ground floor

149

Sportseducation.dk

Office

Store Gråbrøder Stræde 1A, 1st floor, right side

235

Sportseducation.dk

Basement

Store Gråbrøder Stræde 1A, basement

25

Sportseducation.dk

Parking

Algade 18, parking

10

Roskilde Skrædderi

Retail

Hersegade 1E, ground floor

120

11

Architects

Office

Algade 18, 1st floor

223

12

GH Blomster

Retail

Algade 18, ground floor

43

ALGADE

GH Blomster

Storage

Algade 18, basement

20

GH Blomster

Parking

Parking

GH Blomster

Parking

Parking

13 14

La Luna / Vinylfreak

Retail

Hersegade 1D, ground floor

91

Middelfart Sparekasse

Office

Algade 18, 1st floor, right side

141

Middelfart Sparekasse

Parking

Parking (3 spaces)

15

Registreret Revisorcenter Roskilde

Office

Algade 18, 1st floor, left side

144

Registreret Revisorcenter Roskilde

Basement

Algade 18, basement

18

Registreret Revisorcenter Roskilde

Parking

Parking (2 spaces)

16 17 18

Skønhedsklinikken

Retail

Hersegade 1C, ground floor

87

Gert Hagen

Residential

Algade 18, 2nd floor, right side

144

Kirsten og Niels Jensen

Residential

Algade 18, 2nd floor, left side

136

Kirsten og Niels Jensen

Parking

Algade 18, parking

19

Vacant

Storage

Algade 18, basement

761

20

Vacant

Office

Hersegade 1, 1st and 2nd floors

441

21

Vacant

Office

St. Gråbrødrestræde 1A, 2nd floor, right side

222

22 23 24 25 26

Vacant

Office

St. Gråbrødrestræde 1A, 2nd floor

174

Vacant

Storage

Algade 18, basement

20

Vacant

Parking

3 parking spaces

Vacant

Parking

Parking

Vacant

Parking

Parking

IN TOTAL

9,737

Deposits and prepaid rent

Lease Commencement

Non-terminability

Actual rent

Rent adjustment

(DKK total p.a.)

(DKK/sqm p.a.)

(DKK)

Month

Min.

Max.

General

Tenant

Notice

2,494,530

842

418,513

August

2.0%

NPI

1 Jan 2013

1 Dec 2022 6 mts

1,350,875

2,078

226,626

August

2.0%

NPI

1 Jan 2013

1 Dec 2022 6 mts

148,834

271

24,969

August

2.0%

NPI

1 Jan 2013

1 Dec 2022 6 mts

61,000

276

29,902

August

2.0%

NPI

15 Nov 2012

1 Oct 2022 6 mts

279,267

46,892

August

2.0%

NPI

1 Jan 2013

1 Dec 2022 6 mts

6,956

0

January

3.0%

NPI

1 Jul 2013

1 mts

1,534,348

2,435

767,174

March

2.0% 5.0%

NPI

1 May 2013

1 Mar 2023 6 mts

36,261

271

18,131

March

2.0% 5.0%

NPI

1 May 2013

1 Mar 2023 6 mts

1,096,909

1,765

0

February

NPI

15 Aug 1973

6 mts

incl.

incl.

incl.

February

NPI

15 Aug 1973

6 mts

427,838

1,501

208,701

December

2.5%

NPI

1 Dec 2012

1 Dec 2018 6 mts

373,301

3,929

181,214

January

3.0%

NPI

1 Sep 1999

6 mts

302,562

2,564

25,088

July

50% of NPI

1 May 2003

6 mts

incl.

incl.

incl.

July

50% of NPI

1 May 2003

6 mts

298,062

1,545

72,345

October

3.0% 6.0%

NPI

1 Oct 2010

6 mts

198,543

1,333

96,850

March

2.5%

NPI

15 Mar 2017

6 mts

163,296

695

84,081

January

3.0%

NPI

1 Mar 2013

6 mts

4,347

174

incl.

January

3.0%

NPI

1 Mar 2013

6 mts

5,565

incl.

January

3.0%

NPI

1 Mar 2013

6 mts

165,500

1,379

40,170

January

3.0%

NPI

1 Feb 2016

1 Feb 2018 6 mts

154,288

692

50,175

January

2.5%

NPI

1 Aug 2017

31 Jul 2018 12 mts

123,412

2,870

61,706

February

3.0%

NPI

1 Feb 2013

6 mts

ALGADE

8,487

424

4,244

February

3.0%

NPI

1 Dec 2015

6 mts

5,402

0

February

3.0%

NPI

1 Mar 2013

6 mts

5,402

437

February

3.0%

NPI

1 Oct 2014

1 mts

129,519

1,423

63,180

October

2.5%

NPI

1 Mar 2017

1 Mar 2019 6 mts

107,120

760

53,560

February

3.0%

NPI

15 Feb 2013

6 mts

16,207

8,104

February

3.0%

NPI

15 Feb 2013

6 mts

109,399

760

59,827

March

3.0% 5.0%

NPI

15 Feb 2013

6 mts

3,039

169

incl.

March

3.0% 5.0%

NPI

15 Feb 2013

6 mts

10,805

incl.

March

3.0% 5.0%

NPI

15 Feb 2013

6 mts

113,798

1,308

37,933

May

2.5%

NPI

1 May 2013

1 May 2018 6 mts

108,039

750

27,010

1 Dec 2010

3 mts

101,637

747

25,409

1 Oct 2010

3 mts

5,402

September

3.0%

NPI

1 Sep 2013

1 mts

9,949,953

2,632,241

SUNDHEDSHUS VANLØSE

32

Sundhedshus Vanløse

Constructed in 1964, Sundhedshus Vanløse (the Property) is a dynamic and well-functioning home to a variety of clinics, fitness areas and health-related o¢ce administration functions. Set on a 3,757 site, the Property comprises 6,946 sqm on four floors above ground and one floor below ground. With a rectangular shape and a central atrium, the Property has good daylight inflow and relatively narrow floor plates. It was extensively refurbished in 2011 when Sundhedshuset moved in. Upon entering the building, visitors are greeted by the reception area and the heart of the building: an open atrium furnished with large, green plants and plush seating arrangements that create a pleasant, natural environment. The social senior club is housed on the left side, while the rest of the floor is utilised for administrative purposes, clinics and a kitchen. Additional clinics and o¢ces are found on the 1st floor together with fitness areas for rehabilitation. The 2nd floor houses additional o¢ces and meeting rooms. Surrounded by a rooftop terrace, the third floor has a slightly smaller footprint and a more open floor plan with waiting areas for clients, training facilities and a number of smaller, private clinics. Stretching around the building, the rooftop terrace is narrow on three sides of the building and somewhat larger on the fourth side, allowing visitors and employees access to the spacious wooden terraces.

KEY FACTS

Sundhedshus Vanløse

Property Address

Indertoften 10

DK-2720 Vanløse

Postal code/city

3269b Vanløse, København

Title no.

1964 2011

Construction year

Refurbished/reconstructed, year

N/A

Energy label

3,757 O…ce

Site area, sqm

Main uses

Københavns Ejendomme

Single tenant

96%

Occupancy

4.22 years

WALT

SUNDHEDSHUS VANLØSE

A spectacular bicycle parking area with room for more than 160 bicycles is located in the basement and underlines the

33

health-promoting atmosphere of the Property. A window line stretches around about half the building, providing a natural daylight inflow to much of the basement. Spacious changing rooms, showers and bathrooms are also part of the basement level together with technical installations and the heating plant.

KEY FINANCIALS As per 1 January 2018

Some 46 on-ground car parking spaces accompany the property.

Actual rental income, DKK p.a.

7,391,860

Total operating costs, DKK p.a.

304,415

Operating cost budget

Costs (DKK)

Gross

Tenants' share

Net

Stabilised rental income, DKK p.a. (est.)

7,459,360

Site taxes and building taxes

1,031,149 1,031,149

0

67,500

- hereof vacancy rent

Property insurance

45,000 45,000

0

Heating, water, electricity

283,000 283,000

0

Stabilised net operating income, DKK p.a.

Cleaning, janitor etc.

18,000 18,000

0

7,154,944

Service agreemenst

25,000 25,000

0

Elevators

68,000 68,000

0

SUNDHEDSHUS VANLØSE

6,946

Total GLA, sqm

Renewals

55,000 55,000

0

External maintenance (est. DKK 30 per sqm) Property management (est. 1,5%)

208,380

208,380

5,904

- hereof o¢ce GLA

111,890

111,890

- hereof storage/ basement GLA

1,042

IN TOTAL

1,845,419 1,525,149 320,270

Total per sqm

266

46

220

271

Vacant space, sqm

Capital allocation, heating plant** Total incl. capital allocations

-15,855

31,710

1,900,419

1,611,859 304,415

Public valuation (tax assessment value), DKK

66,000,000

15,842,100

- hereof site value, DKK

*Information according to owner’s budget for 2017 ** Capital allocations are included with 50%

34

Floor plan 1st floor

2

1.41

1.07 Forrum Pl. for VM/TT

2

10M MA

1.08 Toilet

GA

GA

GA

GA

GA

O¢ce and storage

Clinic

Fitness

Common

GA

GA

SUNDHEDSHUS VANLØSE

35

Nordhavn (North Harbour)

City centre

Copenhagen N

O2 ring road

Flintholm station

SUNDHEDSHUS VANLØSE

JYSK

Vanløse station Metro/S-train

KRONEN Shopping

Danske Bank

Shopping and culture centre

Jyske Bank

Nordea Bank

XL Byg

Indertoften 10

Ahi international school

LOCATION VANLØSE

The Property is located in Vanløse, 7 km west of the Copenhagen city centre, Rådhuspladsen. Vanløse is part of the City of Copenhagen, bordering on the district of Frederiksberg to the east and Rødovre to the west. The area is a predominantly residential area, although the buildings in the immediate vicinity of the Property are mostly commercial properties. The Property is situated close to the main shopping street of Vanløse - Jernbane Allé – which is the centre of most of the local retail trade in the area, as well as a brand-new local shopping centre, “Kronen Vanløse”, o¤ering 75 shop units and restaurants plus 14,000 sqm residential space on upper floors. Furthermore, the Property enjoys easy access to Vanløse station, o¤ering both S-train and Metro services in addition to several bus lines. By Metro it is possible to reach Kongens Nytorv in central Copenhagen in about 10 minutes and Copenhagen Airport in 25 minutes. Access by car is acceptable. The Property is situated close to Jyllingevej, which further links to the motorway and ring road grid.

CBS

Frederiksberg

EY

Flintholm Company House (DEAS HQ, CBS campus)

SUNDHEDSHUS VANLØSE

Increasing o…ce rents in Vanløse (DKK per sqm p.a.)

Indertoften, Vanløse

1400

1200

1000

800

600

400

200

0

06 07 08 09 10 11

12 13 14 15 16 17

Prime

Secondary

Source: Sadolin & Albæk

Tenant description Almost fully leased to Københavns

Ejendomme (KE) since 2011, the Property is home to Sundhedshus Vanløse, which is a health and rehabilitation centre. Later renamed Københavns Ejendomme & Indkøb (Copenhagen Property & Procurement), KE is part of the Finance Administration of the City of Copenhagen. As an independent organisation, KE provides services and advice to the seven administrations across the municipality and has an annual budget of around DKK 1.5bn. As one of Denmark’s largest property owners and tenants, KE controls a real estate portfolio of more than 3,500 properties and a total of 2.6 million sqm. With a large portfolio diversity, the properties serve as e.g. cultural centres, libraries, schools and sports facilities, administrative buildings and institutions. KE is also responsible for the City of Copenhagen’s procurement department, which oversees annual purchases of DKK 6bn and employs a total of 840 full-time employees in the departments.

The basement through 2nd floors were initially leased by KE, which subsequently expanded into the third floor as well, occupying virtually all of the Property aside from a small basement area. The health centre has a number of offers for citizens of Copenhagen that need rehabilitation, have a chronic disease or e.g. stress or back/neck problems. KE subleases individual clinics and fitness areas to smaller subtenants such as doctors, chiropractors, psychologists, dietitians and a variety of other therapists, thus providing a broad selection of health services.

SUNDHEDSHUS VANLØSE

Lease schedule

Deposits and prepaid rent

Lease Commencement

Tenant

Usage Floor

Area

Actual rent*

Rent adjustment

Non-terminability

(sqm) (DKK total p.a.)

(DKK/ sqm p.a.)

(DKK)

Month Min.

Max.

General

Tenant

Notice

Københavns Ejendomme

Office Basement, ground, 1st + 2nd

5,435 5,833,255

1.073

January 2.75% 4.0% NPI

1 Mar 2011

1 Mar 2021

12 mts

Københavns Ejendomme

Office 3rd floor

1,240 1,562,202

1,260

January 2.75% 4.0% NPI

1 Jun 2011

1 Jun 2021

12 mts

Vacant

Storage Basement

271

1 Jan 2015

Total

6,946 7,395,457 1,065

0

38