Case Studies

Denmark

Louis Vuitton, Copenhagen

Acquisition

Q3 2012

Date Sold

Q1 2016

IRR

0%

Equity Multiple

0x

Avignon Capital was presented with the opportunity to acquire a prime Copenhagen retail asset from a distressed vendor in 2012.

The property is let to luxury retailer Louis Vuitton and benefits from dual frontage on Købmagergade and Amagertorv Square, making it one of the most prominent retail units in Copenhagen.  The 14-year presence of Louis Vuitton in their previous premises and their lavish redevelopment budget signified a long-term commitment to the store. 

Unlike other major European cities where yields had moved back to pre-crisis levels, yields in Copenhagen were only now beginning to make this move. There was strong evidence that within the next 12 months prime yields will have moved back to 4.5% or less, giving Avignon an opportunity to enter the market before yields firmed.

Following acquisition, the retail market in Copenhagen matured with new international retailers entering the market as a result of strong population growth, booming tourism and strong demographics.

Avignon Capital completed the sale of the Louis Vuitton asset in Q1 2016 to a private family office delivering a 112% return on equity over a 3-year hold period.  The sale set a new benchmark yield for retail in the Copenhagen market.