Danish group ATP buy Bremen centre for €212m

Danish commercial real estate investor ATP Real Estate has bought the Waterfront shopping centre in Bremen from vendors Resolution Property and LNC Property Group for €212m. This is the group's first investment in a shopping centre outside Denmark, and one of the largest single direct real estate investments ever by a Danish company, in line with the company's strategy to expand outside its home market.

ATP will be a 95% owner of the centre, while the German Otto family's vehicle ECE is taking the remaining 5% stake. ATP Real Estate is part of Danish pension fund ATP Group.

Michael Nielsen, chief executive at ATP Real Estate, said the centre was an “attractive” investment in line with the fund’s strategy to generate long-term income and cash flows by investing in properties in good locations and with low risk. “We have previously announced our increased focus on this type of real estate assets in Denmark, as well as internationally,” he said. 

Waterfront Bremen opened in September 2008 and Resolution Property subsequently acquired a 50% share from LNC in August 2010 as part of a €130m joint venture. The joint venture has since invested significant capex generating further revenue from lease renewals. Footfall in the 44,000 sqm centre has increased from 5 million visitors to 8 million annually over the period. The centre is 6km from Bremen's downtown close to the Weser river, and with good bus and light rail connections.

The centre is fully let with 120 retailers including such brands as Primark, Media Markt, H&M, Intersport, and New Yorker, all on long-term leases. Facilities included a cinema complex, a large food court and 4,000 car parking spaces, many underground.

Junior partner ECE Projektmanagement GmbH & Co. KG will handle the centre management of Waterfront. ATP Real Estate and ECE have partnered up before on other projects including the shopping centre Rosengårdscenteret in Odense, Denmark, where ATP Real Estate holds an ownership interest of 33%.