EUROPE - The Danish pensions arm of Sweden’s SEB banking and pensions group is buying four law court buildings in Denmark and selling one of its own properties in a deal worth DKK500m (€67m).
SEB Pension said it was buying the court buildings from developer and entrepreneur A Enggaard in exchange for its 17,000 square meter Springvandspladsen building in the town of Hjørring, plus an undisclosed amount of cash.
Peter Mering, head of property at SEB Pension, said the new investment was a good one for several reasons.
“The leases are long, and the quality of the tenant is good - being the Danish state,” he told IPE. “The buildings are suitable for their present purpose, but they would also be suitable as offices should the leases not be renewed.”
The court buildings, which are still under construction, are in the towns of Kolding, Holstebro, Herning and Holbæk, and are due to be completed between 1 March and 1 July.
The purchase includes 20-year leases on the court buildings to the Danish state.
Mering said the locations within the four Danish towns were very good.
“One of the court buildings is situated only 200 metres from another building we finished a few years ago - it is a very exciting development area,” he said.
SEB Pension has around 10% of its total assets allocated to property at the moment.
Though it has no plans to increase this proportion, Mering said it would continue to develop the investment sector by buying and selling properties.
“We are continually trying to make it more valuable by building, renovating and finding new tenants - whatever it takes,” he said.
SEB Pension has total assets of around DKK70bn.