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Sadolin & Albæk Corporate Solutions

A brief introduction

Capability statement

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Sadolin Albæk Corporate Solutions

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Our core competencies:

Tenant representationfor full market visibility and optimization of costs and terms

Sale and lease back

Real estate portfolio managementto increase transparency

and efficiency

Portfolio health check

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Key offerings: A high-level overview

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Core tasks Key benefits

Tenant representation Define space requirementsSearch and selection of suitable spaceAdvise on space optionsNegotiate lease on behalf of the client

Access to all properties on the marketStrategic fit of selected propertiesCompetitive lease costs and termsAccess to up-to-date skills and capabilities

Portfolio management Data collection, validation and benchmarkLease contract market testing & benchmarkDevelopment of property strategy and policyTransaction management

Benchmarking, overview and outlook Organized data capture and storageReal-time monitoringFlexible reporting

Portfolio health-check Market testing of lease contractsConfirm space requirementsMatching leases against space requirementsRe-negotiate lease on behalf of client

Benchmarks and outlook Competitive lease costs and termsStrategic fit of selected propertiesIdeal base for portfolio management

Sales and lease back Optimized rental terms, vs.Optimized sales priceAdvice on financial vs. operational leasingEnsures flexibility

Unlocked tied up capitalImproved liquidityAlternative property financingLong-term stability / control of facility

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When teaming up with SACS you achieve …

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Access to the entire market

We are part of a large local and global network and are therefore able to

identify properties that may not seem available in the market

We always represent the tenant, and we have no vested interest in terms of specific properties or other market

players

We share your objectives and focus on how to reduce your costs

Optimisation first and last

We draw up a detailed requirement specification and scorecards, thereby providing you with an objective and

individually tailored solution

We draw on extensive experience and solid knowledge of rules and regulations

We work together with your own team of experts and advisers in order to provide you with the best possible

outcome

Smooth and robust process

We ensure a structured and well-documented process, which is result-

driven and transparent at all times

Anchored in our industry experience and insight we make sure that the process

takes into account issues such as timing, availability of areas, outstanding

liabilities, etc.

We guarantee a transparent and objective process, providing a well-

substantiated and unbiased basis for decision-making

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Guiding principle:

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Sadolin & Albæk Corporate Solutions

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Global partnership with JLL - Business is local

A global partnership between SACS and JLL allows serving clients worldwide and providing the full scope of services regardless of geography. We can pull together multinational project teams to solve complex tasks that might require a variety of skills at different points in time.

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Client HQ

Location Location Location

SACS

JLL

JLL

JLL

JLL has 52,700 employees across 200 corporate offices in more than 75 countries

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About Sadolin & Albæk

Market-leading commercial property advisor and agent:

We create value for our clients: We are always focused on ways to growing our clients’ potential for achieving their goals, whether higher profitability or efficiency, increased or reduced exposure to real property, higher returns or reduced risk.

We deliver efficient and innovative solutions: We identify the best possible and viable solutions for our clients, and excel at finding new ways of thinking and new approaches.

International alliance with strong partner: We are the Danish alliance partner to JLL. JLL has 58,100 employees across 220 corporate offices in more than 80 countries. Thanks to this partnership, we are able to assist our Danish clients in international markets, too.

Sadolin & Albæk is a member of RICS, the Royal Institution of Chartered Surveyors, internationally acclaimed for its high valuation standards and practices.

“Best in Class”: S&A has for ten consecutive years, 2006-2015, received prestigious Real Estate Awards in a poll performed by international magazine EUROMONEY, most recently in the categories ‘Valuation’ and ‘Research’. Since 2005 Sadolin & Albæk has repeatedly won several categories.

Founded in 1967, Sadolin & Albæk has offices in Copenhagen and Aarhus. We currently have 37 people employed.

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Corporate Solutions Capital Markets

Experience-based advice on optimising space utilisation.

Based on individual business strategy and objectives, we help clarifying our clients’ demands and area requirements. On that basis, we identify the ideal solution and act as strategic facilitators in order to achieve the most favourable terms and conditions for our clients.

Qualified strategic advice on major property transactions.

Based on solid market expertise and an outstanding database compiled over decades, Capital Markets’ highly qualified team offers clients advisory services relating to the acquisition and divestment of property companies, single properties and property portfolios.

Analysis and research Commercial leasing

In-depth market research and property valuations.

Based on extensive market knowledge, solid practical experience and a keen analytical mindset, our team of analysts prepares thorough market research and analyses. We provide our clients with a well-documented basis for decision-making whatever the assignment.

Professional and dedicated commercial leasing.

Our experienced leasing team exclusively handles commercial leasing, with particular focus on office and retail. The team has accumulated an extensive insight into the industry and specialist knowledge of the commercial letting market.

Business areas

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Selected References 2013-2016

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Service provided Evidence from other clients

Advisory Novo Nordisk, Novozymes, Microsoft, FMC, VELUX, Danske Bank, Rambøll

Benchmarking Novo Nordisk, Lundbeck, VELUX, Danske Bank, Rambøll

Business case work Microsoft, MSD, KPMG, Novozymes, Rambøll

Exchange of experience Carlsberg, Lundbeck, A.P. Møller-Mærsk, Microsoft, Nordea

Frame agreement Lundbeck, Rambøll, Danske Bank

Lease management Lundbeck

Large Projects Microsoft, MSD, KPMG, FMC

Methods tool box Novo Nordisk, Novozymes, Velux, Microsoft, FMC, Coloplast, MSD

Portfolio Management Lundbeck, VELUX,

Tenant Representation MSD, Volvo, Siemens, Shell, KPMG, VELUX, Lundbeck, … See also “Selected references”

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Sadolin Albæk Corporate Solutions

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Lau Melchiorsen Keld Abildgaard Ulrich Reckert Peter Lybye Julie Stamp

Title MD, PartnerMRICS

Director DirectorMRICS

Manager Project Coordinator

Background More than 20 years experience from commercial real estate. Partner in Sadolin & Albæk since 2009. Extensive international experience

25 years experience from commercial real estate, whereof 19 years in leading positions. Background in banking.

More than 20 years experience from business development and project management, the last 8 years within corporate real estate.

More than 10 years experience from the construction industry, whereof 7 as developer. Further specialization in Facilities Management.

More than 7 years experience from communication, customer cooperation, vendor management and project administration in various industries.

Education M.Sc. Econ Real estate agent M.Sc. EconPRINCE2

B.Sc. of Architectural Technology and Construction Management

Master of Arts

Languages Danish, English, Swedish Danish, English Danish, English, German, Swedish

Danish, English, German Danish, English, Swedish, Norwegian

Contact Phone: +45 22 27 02 53lm@sadolin-albaek.dk

Phone: +45 28 19 66 73kab@sadolin-albaek.dk

Phone: +45 31 60 90 53ur@Sadolin-albaek.dk

Tel.: +45 30 62 36 85pl@sadolin-albaek.dk

Phone: +45 31 69 58 66js@sadolin-albaek.dk

Client Cases

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Tenant representation: Domicile for KPMG

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Case study

Challenge: In connection with commencement of operations in Denmark, audit, tax and advisory firm KMPG requires new offices in Aarhus and Copenhagen.

Solution:

1. In Aarhus, SACS identify suitable offices for KPMG and negotiate the lease. Copenhagen it is a much more challenging task to find a suitable office that fulfils all of KPMG’s requirements.

2. SACS develop a two-step approach: a stopover lease and in parallel search and selection of the permanent lease.

3. SACS identify a domicile property at the waterfront in the old Copenhagen free port, which upon completion of a major refurbishment project will become the modern head office for KPMG. SACS negotiate the lease contract and coordinates the entire project.

Benefits:With full-service advice and project management from SACS, KPMG gets a reconditioned Copenhagen domicile fulfilling all of theircomplex requirements. SACS also secure a tenant for a vacant floor until KPMG will require this space, providing income and avoiding unnecessary expenses.

"SACS have been our competent and professional adviser in connection with our new establishments in both Copenhagen and Aarhus. SACS have shown thorough and valuable market insight, which in combination with effective process management has ensured that we could make the right decisions during the process."Thomas Hofman-Bang, Senior Partner, KPMG

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Tenant representation: Domicile for Microsoft Danmark

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Case study

Challenge: Microsoft Danmark have some 1,000 employees at two sites in Greater Copenhagen and want to consolidate sales and software development.

Solution:

1. Together with architects and engineers, SACS define the program of requirements for Microsoft

2. SACS identify a location, which fulfils all of Microsoft Danmark's requirements, but is not in line with urban management plans.

3. SACS initiate a close dialogue with the Municipality, present several possible scenarios, and develop a model that is beneficial to Microsoft Danmark and at the same time consistent with urban planning.

4. Microsoft Danmark prefers to lease its new head office and SACS identify an investor for the development scheme. Microsoft Danmark lease 20,000 m2 office, and 20,000 m2 are designated for residential use.

Benefits:With SACS as adviser and negotiator, Microsoft Danmark get a new head office that meets all requirements and demands, achieves substantially lower cost through area reductions at higher quality. Lyngby-Taarbæk secure usage of the area that tallies with municipal development plans, and the investor is given access to an attractive investment opportunity

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Tenant representation: Domicile for FMC

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Case study

ChallengeFMC, one of the world's leading specialty chemical companies, are considering a consolidation of several sites in Europe, moving their European HQ and creating a new R&D centre.

Solution

1. SACS define FMC’s five key criteria: good access to talent and education institutions, location in a biotech cluster, proximity to strategic partners and good access throughinternational travel.

2. It quickly becomes evident, that no suitable existing lab space is available. A feasibility assessment reveals that converting existing office space at Scion DTU in Hørsholm is the ideal solution.

3. Negotiating commercial terms and conditions happens parallel with matching technical requirements to the programme.

4. Due to a tight timeline, the lease has to be signed before the technical programme is finalised and costs are firmed up. In order to safeguard the interests of all parties, a set of regulating clauses is introduced into the contract. These clauses ensure technical fit and financial clarity for both tenant and landlord.

BenefitsIn a very short time, and despite a moving target, SACS secure for FMC a well-suited property in ideal surroundings and negotiates a competitive lease. Upon move-in in Q4 16, FMC will have approx. 9,000 m2 plus greenhouse at their disposal; 3,900 m2 will be office space and 5,100 m2 R&D and support facilities.

SACS further secure temporary offices for FMC, which means that the new European HQ and Innovation Centre is operational already one year prior to completion of construction works for the main facility. All in all an ideal property for FMC and a prime tenant for Scion DTU.

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Portfolio management: H. Lundbeck

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Case study

ChallengeThe pharmaceutical company Lundbeck wish to obtain an overview and improved management of its 59 branch offices worldwide and to be able to easily identify ‘right size, right location & right price’ for all their leases.

Solution

1. Sadolin & Albæk Corporate Solutions develop a database that enables Lundbeck to segment and analyse the lease portfolio from all angles.

2. Together with Lundbeck, we also develop at set of standard processes, procedures and project templates. These make it possible to align change management processes and property transactions.

BenefitsDue to the new tools, Lundbeck today has a full overview of all its leases and easy access to a comprehensive set of key figures. These form the basis for internal and external benchmarking. At the same time, these tools enable Lundbeck to identify and remedy challenges and mismatches at an early stage; the expiry of lease agreements, development of overheads over time, locations or contracts blocking for development and strategic objectives, whether areas utilization matches requirements, etc.

Thanks to processes and new tools, Lundbeck is improving its project management and execution pace dramatically. Moreover, Lundbeckis able to manage multiple locations more easily and simultaneously, and channel freed-up resources into its core business throughout the organisation. In total, we delivered considerable cost savings in a short amount of time.

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Portfolio health-check: Fitness dk

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Case study

ChallengeAfter several years of rapid expansion, fitness dk has entered into a phase of organic growth and consolidation and wish to evaluate their lease portfolio.

Solution1. SACS conduct a thorough Portfolio Health Check, which includes:

Counselling and advice by identification of critical indicators for assessment of the market conformity of the lease contracts

Establishing the overall conditions for communication and reporting

Review of benchmarking of lease contracts, visualised in a score card to compare with currently vacant tenancies

Ongoing matching of expectations as well as reporting on achieved results with an aim to continuously adapting the mandate

SACS assess fitness dk’s leases according to the key criteria: Profitability, current centre size vs. optimum size, current rent vs. market rent as well as other important aspects.

2. Based on that assessment, SACS scrutinize 21 leases and identify the ideal negotiation strategy. Once done, we contact the landlord to re-negotiate terms.

BenefitsTo date, SACS have successfully renegotiated 75 percent of fitness dk’s leases. We have further provided fitness dk with a detailed insight into each tenancy, in particular whether it is under-utilised or overpriced.

We provide an overall assessment of locations with the potential for optimization on either one of more of the criteria: size, price, location. Furthermore, the Portfolio Health Check enables fitness dk to make informed decisions on the geographic spread of locations; which cities are beneficial for a fitness dk center, and what is the ideal location in each city.

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Ad-hoc assistance: Three cases

Property disposal CRE organization Opportunity spotting

Client Mid-sized Danish municipality Nordic bank Danish bank

Challenge Dispose of surplus education facility with day-care centre

Develop recommendation for organising corporate real estate

Underutilized and scattered office lease portfolio

Solution Dedicated project manage-ment and negotiation team

Market scan for suitable buyers

Identification of an engineering college as ideal candidate.

Lease contract for the child care institution

Identify skills and capabilities required

Understand culture, processes and governance

Organise workshop to align stakeholders

Compile concise, tailor-made presentation to executive leadership team

Track utilization at various client locations

Monitor lease requirements of potential tenants and match with potential sites

Develop proposal and negotiation platform

Broker mutually beneficial deal

Benefits Freeing up cash tied up in property

Organic expansion of the site of the engineering college

Secured continued availability of day-care for families in the neighbourhood.

Access to latest best practice

Independent advice based on current market practice, reflecting corporate culture.

Undivided and unbiased attention to the task at hand

Increased space utilization

Reduced occupancy costs

Improved internal co-operation after concentration of employees on fewer locations

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Case studies