Conversion of property

Enabling and executing the conversion of a commercial property to a residential property.

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Pension Fund

Situation

The client had a commercial property that had been vacant for 7 years. The investment strategy was to develop a new local plan to pave the way for the property’s conversion to a residential property. The conversion also had to be structured, executed and completed. GAV: DKK 0.1 billion.

Problem

There was no demand for the property in its current use. This meant there were high, continuous vacant building costs and that the property was a continuously loss-making asset.

Vacancy New local plan

Solution

DEAS negotiated a new local plan with the municipality, and thereby a plan for the conversion of the property to 75% housing and 25% business. Technical planning of the conversion was done and collective prices for the construction were obtained.

DEAS secured the commercial validity of the conversion plan and carried out the conversion.

Result

The investment strategy put an end to a persistent loss on the property. The property was prepared for sale and sold after 18 months of work. Generated value add of 65%.

Contact

Benny Buchardt Andersen

Direktør/CEO
DEAS Asset Management
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