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Newsec Advises on the Sale of a 89,000 sqm Retail Portfolio on Lease to Silvan

Newsec Advisory was in early 2018 appointed by the previous owner of Stark Group (previously DT-Group), Ferguson plc, to advise on the valuation and strategic exit opportunities of their property portfolios in Denmark, Norway, Sweden and Finland. Newsec has, thanks to a cross-border platform and with the support of alliance partner BNP Paribas Real Estate, executed the sale of 40 individual properties. The various transactions were completed within the past 8 months, with the Silvan portfolio being closed as the last major transaction of the overall divestment.

The Silvan portfolio consisted of 18 retail properties and one plot of land, located across Denmark, with the majority located within the Greater Copenhagen area. Comprising a total gross lettable area of 89,000 sqm. The recent sale leaves two properties still unsold, out of 42 properties. We expect to have completed the sale of Ferguson’s entire Nordic property portfolio by the end of the year.

“Ferguson has valued Newsec and BNP Paribas’s advice and support in connection with our divestment of a substantial and complex property portfolio across Scandinavia. The process was handled professionally and executed in a timely manner. We are very pleased with the outcome and appreciate that a lot of that success is down to the team that managed the process for us,” says Robert Goldsmith, Deputy General Counsel, Ferguson.

Sold to an international entity advised by Pears Global Real Estate

The Silvan portfolio included individual properties with long term development potential and all properties are on lease to Silvan on various length lease contracts. The size and structure of the portfolio resulted in significant investor interest, in particular from international investors, and was eventually sold to an entity who understood the long-term potential of the portfolio. The final purchase price is undisclosed, but the share deal included a booked value of land and buildings amounting to DKK 387m.

Strong Pan-Nordic Newsec Team

The complexity of the Ferguson property portfolio, the multitude of transactions across the Nordics and the speed of execution illustrates the strength of Newsec’s pan-Nordic platform. The advisory mandate required a precise and thorough analysis of the property portfolio and underlying values, enabling Ferguson to make the best strategic decision.

“The process has been interesting on many levels, and once again highlights the value-add of our close collaboration between the Nordic Newsec offices. The set-up provided Ferguson with a high level of comfort and helped facilitate a high transaction tempo,” says Brian Tretow-Loof, Head of Capital Markets, Newsec Advisory in Denmark, and continues:

“Our 360-advisory platform, spanning from valuation, occupier advise, rent analysis to exit strategy negotiations, has once again proved valuable and resulted in a successful divestment for Ferguson. One of the challenges with the Silvan portfolio has been the exposure to retail. However, a structured approach to both Danish and international investors has ensured that the optimal investor was identified.”

Ferguson has received Danish legal advice from Klar Advokater

“The collaboration between Newsec Advisory and KLAR Advokater on the divestment process has been carried out both smoothly and top professionally to the success of Ferguson. This divestment process also illustrates KLAR Advokater’s strength and capability of executing transactions of this size and complexity”, says Thomas O. Q. Krüger, Partner and attorney-at-law at KLAR Advokater.

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Annika Wahlund Head of Press, Newsec Advisory