A part of Watch Media

AMWatchSunday29 January 2023

  • Search
  • Log in
  • Fund Management
  • Pension
  • Responsible Investing
  • People
  • Search
  • Log in
  • Latest
  • Search
  • Log in
  • Fund Management
  • Pension
  • Responsible Investing
  • People
20/02/2017at 14:05

Asset manager to build 23-floor apartment building in Denmark

On behalf of its investors, Aberdeen Asset Management aims to build the tallest apartment building in the central Jutland region of Denmark. The building will stand 70 meters tall with 23 floors.
Photo: PR-visualisering: Årstiderne Arkitekter
by JØRGEN BENDSEN

Luxury apartments with a view of Silkeborg city in Denmark and the area's unique nature, seen from an altitude of up to 70 meters. This is what awaits the discerning potential buyers when the hitherto tallest residential construction in the central Jutland region of Denmark becomes reality in 2020, containing approx. 80 tenancies intended for exclusive apartments and co-operative apartments, amounting to a total project cost of a three-digit million sum in DKK.

It is a very exciting building project, and it will be a gem to our investors

Henrik Kruse, Head of Business Development Denmark, at Aberdeen Asset Management
Asset manager Aberdeen Asset Management bought the plot by mandate from its investors. The spectacular new construction, which is set to begin later this year, is located on the former grounds of an old paper factory in Silkeborg, a five-minute walk from the city center.

"It is an incredibly attractive area. Thanks to our contacts and network, we were able to broaden the palette for residents of Silkeborg. It is a very exciting building project, and it will be a gem to our investors when it is finished," says Henrik Kruse, Head of Business Development Denmark, at Aberdeen Asset Management.

More difficult to do business in Copenhagen

The Paper Tower (Danish: Papirtårnet), as it has been dubbed, will total 11,380 square meters of floor space distributed on 23 stories. The 70-meter-tall building will contain about 1,000 square meters of commercial floor space, which Aberdeen anticipates filling with stores and restaurants. The remaining floors of the building are reserved for naturally well-lit apartments of different sizes, all of which will have individual balconies, attractive views, and their own parking spots in the basement garage.

Aberdeen's interesting investment in Silkeborg partly reflects the current market in Copenhagen, which has unusually fierce competition.

"We have intense focus on real estate in Copenhagen, but as the market develops, other cities in Denmark have become interesting as well. Silkeborg is a very interesting city from a development perspective. It has beautiful nature, good infrastructure, and a vibrant urban life," says Kruse, who does not hesitate to call the building a future hallmark of Silkeborg.

"The demand for attractive apartments in Copenhagen is very high, and the cases that favor buyers and developers are few and far between," he continues.

Who are the investors?

"They are foreign investors who focus on finding this type of projects in Europe. So we are very happy that we have been able to help," says Kruse.

Local club owner sells plot and building rights

Kruse's coworker, Fund Manager Michael Schumann, will not disclose the exact initial yields of the investment, but as the location is unequaled in Silkeborg, and due to the fact that it is a high-rise building, the project could compete with property investment in Copenhagen or Aarhus, he says.

We expect to launch another three to five projects targeted at the same investors within the next few years

Henrik Kruse, Head of Business Development Denmark, at Aberdeen Asset Management
Aberdeen bought the plot from limited partnership Papirfabrikken, a subsidiary of local football club owner Silkeborg IF Invest, with a number of local business people and investors from Silkeborg in the circle of owners.

The company owns four building rights, of which Aberdeen bought one. It is approved for high-rise buildings at a maximum height of 70 meters on the 500 square meter plot.

"We need exemption from the local development plan, but that is merely a matter of formality," says Michael Schumann, who assesses that the remaining three building rights are not suitable for construction, which is what Aberdeen and investors behind the asset manager are looking for. The number of square meters is too small for their purpose.

"We have other projects going as well, and we expect to launch another three to five projects targeted at the same investors within the next few years. Normally it would have to exceed 10,000 square meters to have enough volume for us to find it interesting," Kruse adds.

Out of the apartments on the lower 22 floors, half will be put up for sale as co-operative apartments, while the remaining part up to the top of the building will be offered as luxury condominiums , which Aberdeen intends to sell individually to buyers with special interest. Aberdeen will not reveal the final project cost, but if a conservative price of DKK 3 million is assumed, then 40 luxury apartments by themselves would total DKK 120 million. Then come the co-operative apartments in addition, which will be somewhat less expensive.

The construction area is a parking lot at the moment, but the new building will contain a basement garage that compensates for the seized parking space.

The Paper Tower is designed by Årstiderne Arkitekter, located in Silkeborg.

Photo: PR-visualisering: Årstiderne Arkitekter
Photo: PR-visualisering: Årstiderne Arkitekter

English Edit: Marie Honoré

Sign up for our newsletter

Stay ahead of development by receiving our newsletter on the latest sector knowledge.

!
Newsletter terms

Front page now

Pension firms can play a significant role in steering companies into a more sustainable direction, says SPP and Storebrand Head of Sustainability, Johanna Lundgren Gestlöf. | Foto: Jonas Eng
AMNews

Two additional pension firms join the green club in Swedish sustainability rankings

Swedish unit-link insurance companies have undergone their annual sustainability assessment by insurance brokers, Söderberg & Partners. Several have moved up and down the rankings.
  • Alecta goes from amber to red in sustainability report
  • New sustainability report: Higher quality in fund offerings from Swedish unit-link insurance companies

For subscribers

Maunu Lehtimäki, CEO of Evli. | Foto: PR Evli.
AMWatch

Alternative sales grow and net flows start to stabilize at Finland's Evli

For subscribers

Speed is of the essence when launching new investment products, CFO Masih Yazdi says. | Foto: PR / SEB
Fund Management

SEB aims for speedy product launches to make up for huge AUM drop in 2022

For subscribers

Foto: Thomas Borberg/Ritzau Scanpix
Responsible Investing

Danes' equity holdings shrank by 9% in 2022

For subscribers

Foto: Shannon Stapleton/Reuters/Ritzau Scanpix
AMNews

Investors are missing earnings data after 2022 IPO collapse

For subscribers

Karl C. W. Mathisen fills position as head of equities at Folketrygdfondet on Feb. 1. | Photo: Folketrygdfondet
People

Folketrygdfondet finds new head of equities in own ranks

For subscribers

Further reading

Simon Cooke is the portfolio manager for BNY Mellon's new Responsible Horizons EM Debt Impact Fund. | Foto: PR/ BNY Mellon
Fund Management

BNY Mellon launches EMD impact fund as issuances take off

One of the world’s largest asset managers has launched a new emerging market debt impact fund, and expects the Nordics to take part as one of its largest investor groups, Portfolio Manager Simon Cooke tells AMWatch.

For subscribers

Jacob Schlawitz (left) is the CEO of Max Matthiessen. Mikael Tjäder (right) is the CEO of Fondab, which will soon become fully integrated with Max Matthiessen. | Foto: Max Matthiessen / PR - Fondab / PR
Fund Management

The core of Max Matthiessen's business "will always be insurance brokerage"

Max Matthiessen’s recent acquisition of Fondab will not be its last. The Swedish insurance and finance company aims to own more of the value chain, CEO Jacob Schlawitz tells AMWatch. 

For subscribers

Timo Löyttyniemi, CEO of the State Pension Fund of Finland (VER). | Foto: PR VER.
AMWatch

Finnish state pension fund looks at boosting private assets exposure

”Taking into account how large changes have been taking place in the world during the past three years, we have made surprisingly few adjustments within our portfolio,” says Timo Löyttyniemi, CEO of Finland’s EUR 21.3bn State Pension Fund. 

For subscribers

Latest news

  • Two additional pension firms join the green club in Swedish sustainability rankings – 27 Jan
  • Investors are missing earnings data after 2022 IPO collapse – 27 Jan
  • Danes' equity holdings shrank by 9% in 2022 – 27 Jan
  • SEB aims for speedy product launches to make up for huge AUM drop in 2022 – 27 Jan
  • Alternative sales grow and net flows start to stabilize at Finland's Evli – 27 Jan
  • Folketrygdfondet finds new head of equities in own ranks – 27 Jan
  • Global clean-energy investments match fossil fuel for the first time – 27 Jan
  • Here is how Norwegian fund managers performed in 2022 – 26 Jan
  • Morgan Stanley fines its bankers over messaging breaches – 26 Jan
  • Slight recovery in SEB’s AUM in fourth quarter – but outflow continues – 26 Jan
See all

Jobs

  • PenSam søger en jurist med interesse for den finansielle sektor

  • Porteføljemanager til danske ejendomme i PenSam

Watch Jobs

  • Revisor med minimum et par års erfaring

  • Tilbudschef - NCC Renovering Vest

  • People and Operations Partner

  • Business Controller til DAHL Advokatpartnerselskab i Jylland

  • Business Intelligence Specialist

See all jobs

Jobs

  • PenSam søger en jurist med interesse for den finansielle sektor

  • Porteføljemanager til danske ejendomme i PenSam

See all jobs

Colophon

AMWatch
Search

Sections

  • Fund Management
  • Pension
  • Responsible Investing
  • People
  • Sitemap
  • RSS feeds

Editor

Anne Louise Houmann

alh@amwatch.dk

Tel.: +45 2830 5142

Editor-in-chief

Anders Heering

Publisher

JP/Politiken Media Group Ltd

Advertising

annoncering@infowatch.dk

Tel.: +45 7077 7491

Advertising

Job Advertising

job@infowatch.dk

Tel.: +45 7077 7491

Jobs

Subscription

Try AMWatch or get an offer for a subscription meeting the exact needs of you or your company.

amwatch@infowatch.dk

Tel.: +45 7077 7491

Learn more about subscriptions here

Address

AMWatch

Rådhuspladsen 37

1785 Copenhagen K, Denmark

Tel.: +45 3330 8382

Guidelines

  • Privacy Policy

Copyright © AMWatch — All rights reserved

Microsoft is in the process of discontinuing Internet Explorer – and so are we.
For a better experience, we recommend using one of the following browsers.

Kind regards,
AMWatch

Google ChromeMozilla FirefoxMicrosoft Edge