Retail Property - Danish target UK despite tax law

Danish investors are continuing to target retail property in the UK, despite changes to the Danish tax regime designed to head off the flow of capital across the North Sea.

Property consultant GVA Grimley has just won a mandate to invest more than£140 million for Danish syndicates over the next two years.

The Danes typically invest in retail warehousing and leisure properties.

The largest purchase recently was a 5,855 sq m retail warehouse unit in Swansea, let to B&Q for a further 16 years, which was bought for£7.7 million.

Mark Frampton, an associate with GVA Grimley's investment team, said: 'The deals are packaged by syndication companies that establish single purpose property vehicles for the investors. The structure of UK leases is highly attractive and this, combined with a low interest rate environment, has enabled Danish investors to be increasingly acquisitive in the UK over the past 12 months.'