Commercial, Residential - 3. June 2022
EDC Poul Erik Bech posts record revenue and bottom line
In 2021, Denmark’s biggest estate agency, the EDC Poul Erik Bech Group, had a record year with a pre-tax profit of DKK 151 million, up 31% on 2020, which was also a record year. The profit after tax totalled DKK 121 million, while revenue topped DKK 608 million, up 13% on the previous year. The commercial side of the business in particular saw strong growth in 2021. The result is described by management as extremely satisfactory.
Denmark’s largest estate agency, EDC Poul Erik Bech, which has 19 commercial property centres, 74 residential estate agents and 650 employees posted record results in 2021. Poul Erik Bech says:
“We are continuing our ambitious growth journey, and stand strong in both the residential and commercial property markets. Our constant focus on delivering high quality at competitive prices and on collaborating with all our great customers paved the way for an impressive result. The trading conditions last year were also definitely a contributory factor, where the overall transaction volume in the commercial market was record-high. In the first half of 2021, the level of activity in the residential market stayed high due to the COVID-19 situation and people’s domestic focus, while in the second half and early 2022, things have returned to more ‘normal’ levels. We have also benefited from increasing returns on our own equity.”
Growth in the number of branches
Referring to the private housing market, Poul Erik Bech says: “We’re constantly working to develop, optimise and grow our nationwide chain of branches. We expanded with two new branches in Gilleleje in northern Zealand, and with a branch for our Sønderborg shop in Guderup on Als in 2021. At the beginning of 2022, we also acquired six branches in Nyborg, Middelfart, Dalum and Næsby, which are all on Funen, as well as in Virum and Lyngby, and as of 1 April 2022, we acquired three branches in Albertslund, Glostrup and Taastrup. At the same time, we plan to open another branch on Nørrebro, as well as new branches in Vesterbro and Copenhagen SW in 2022, so that we will soon have more than 75 branches in total.”
Record year for Commercial
EDC Erhverv Poul Erik Bech has 19 commercial property centres located throughout Denmark. Poul Erik Bech says: “The total volume of transactions in Denmark was at a record high in 2021, and topped DKK 100 billion. Many investors are looking for alternatives to negative interest rates and the price fluctuations being seen for shares and bonds. The high demand is largely driven by foreign players and institutional Danish investors. I continue to expect a high level of activity in the commercial property market. We generated revenue of DKK 245 million on commercial property in 2021, which is 25% up on 2020. The total profit increased at the same time from DKK 20 million to DKK 37 million after tax, up 87%. We have just purchased another commercial property centre in Taastrup, which brings the total number up to 19, and we want to further expand our position as the most widely distributed nationwide estate agency in Denmark within commercial property.”
“In 2021, our International Department has again seen strong growth, and completed numerous tasks in collaboration with JLL (Jones Lang Lasalle), one of the world’s largest commercial real estate services companies. Based on our broad customer mix and our committed partners and employees, we expect to realise revenue and a profit in 2022 that is roughly on a par with 2021 for commercial property. On the other hand, our expectations for the residential property market are more muted, as we are seeing a marked decline in the number of transactions. On top of a boom, it is inevitable that people will need to adjust to the new costs, and from previous experience this can take some time.”
EDC Poul Erik Bech is independent of banks and mortgage credit institutions and is largely owned by the non-profit foundation Poul Erik Bech Fonden, which, through the profit generated from the estate agency activities, supports voluntary associations that make a difference for vulnerable children as well as the arts and architectural cultural heritage.