Glossary — real estate and capital markets

Weighted average of remaining lease term across a property or portfolio. High WAULT (10+ years) signals predictable cash flow. Institutional investors typically prefer grocery assets with 7+ years WAULT and logistics with 10+ years.

The annual percentage rate that makes the NPV of cash flows equal to zero. Typical IRR requirements: pension funds 4,5–10 %, family offices 6–12 %, private equity 10–15 %. See our IRR benchmarks per investor profile.

Operating income before financing and tax. Calculated as rental income minus operating costs (maintenance, administration, insurance). NOI divided by purchase price gives the gross initial yield (cap rate).

Valuation method where future cash flows are discounted to present value using a required return. Standard in all Investor Memorandum analyses. We typically present 5, 7 and 10-year DCF with conservative and optimistic scenarios.

Legal agreement binding the recipient to confidentiality about material. We use NDAs for all Investor Memorandum exchanges and sensitive case data. See our off-market process.

EU regulation classifying investment products by sustainability: Article 6 (standard), 8 ("light green" with ESG characteristics) and 9 ("dark green" with explicit sustainability objective). BESS, solar and wind are typically SFDR-8 or -9 compatible.

Capital expenditure on acquisition or improvement of long-term assets. Our BESS project typically has CapEx around DKK 400m for 55 MW / 110 MWh facility.

Large battery facilities that store excess electricity and deliver it back to the grid during peak demand. Denmark is investing heavily in BESS due to renewable generation and regulation effective from 2025. See our green energy mandates.

Transaction where a company sells its property and simultaneously enters a long-term lease (typically 10–20 years) so operations continue unchanged. Frees capital tied up in real estate. See full guide.

Financing structure where investor (typically pension fund or fund) enters early in a residential project and finances construction against acquiring the finished asset. Gives developer liquidity and investor attractive pricing. We work with forward funding DKK 300–700m.

Transaction that is not publicly announced. Only a curated network receives access to material under NDA. Provides seller discretion and better negotiation position. See our off-market process.

The creditworthiness of a tenant — strong covenant (e.g. large retailer, pension fund, public authority) means low risk of default. Institutional investors often require strong covenant combined with long WAULT.

Confidential sales document presenting an investment opportunity with financial model, market analysis, risk review and legal documentation. Delivered under NDA. See what an IM contains.

Investment strategy creating value through active improvement — conversion, subdivision, refurbishment, re-leasing or operational optimisation. Typical IRR requirement 10–15 %. Private equity funds and industrial properties are classic value-add arenas.

Partnership between two or more investors on a specific project. Structure can be proportional (50/50) or structured (e.g. 70/30 with fixed return to one party). We arrange JVs between pension funds, family offices and developers.

Large data centers of 50,000+ sqm and 70 MW–1 GW power capacity, typically leased to global cloud operators. Requires specialised infrastructure (water, district heating, grid connection). See our hyperscale mandates.

Data center model where multiple clients lease space in the same facility — typically 3–10 MW per facility. Smaller scale than hyperscale but with broader tenant base and often longer tenures.