Coop, one of Denmark’s largest retail companies, has sold a 131,300 sq m business-, campus- and retail portfolio in Aarhus South to one of Denmark’s largest privately held real-estate companies Dades.
Dades is owned by Novo Holdings, Tryghedsgruppen and Aase and Ejnar Danielsen’s Fund.
For more than a century, Coop has owned and operated businesses in and around Aarhus South; and since 1996, they have managed to successfully develop and convert properties previously used for their own purposes.
The significant investments that Coop has made, have turned the quarter into a modern business, campus and retail destination and have been pivotal in turning Aarhus South into the vibrant, active and modern neighbourhood that it is today.
Catella Corporate Finance conducted a structured bidding process that has proven successful and generated significant amounts of interest among both Danish and international investors.
“The successful transformation of the area that Coop has patiently officiated has clearly been instrumental in bringing this solid investment case to life”, said Jesper Bo Hansen, Head of Corporate Finance at Catella. He, too, points out that Catella has complete faith that Dades will manage and continuously develop the area of great benefit to tenants, retailers and the millions of visitors that frequent the neighbourhood every year.
Historically, the transaction is one of the largest ever carried out in Aarhus. Due to the size of this mega transaction, the final closing is dependent upon the Danish Competition and Consumer Authority’s approval.
RPA Perspective Coop Danmark saw grocery profits more than double last year, increasing from NOK 206 million (€27.66 million) to NOK 471 million (€63.25 million).
The cooperative group, which operates the SuperBrugsen, Dagli'Brugsen, Fakta, Irma and Kvickly retail chains, reported turnover of NOK 44.79 billion (€6.02 billion) in 2017, which was roughly in line with the previous year.
"2017 was another challenging year for the grocery industry in Denmark," said Coop chairperson Lasse Bolander at the announcement earlier this year. "Competition is intense in a market with massive overcapacity, structural changes and changes in consumer behaviour - and in this light we are pleased with the year's earnings."
Bolander added that Coop will continue with its transformation strategy this year, investing in the modernisation of stores and its increasing focus on digitisation.
In particular, the retailer is trialling a new checkout-free system at one of its Dagli'Brugsen neighbourhood stores in Sengeløse, near Copenhagen. Coop also opened its first organic supermarket, Irma OKO, in Copenhagen earlier this year, which has the highest share of organic products in the country.
