Each property stands legally independent.
An SPV is typically a private limited company (ApS) under Danish company law, whose articles of association explicitly limit its purpose to owning and leasing a specific property. This means that the SPV's assets, liabilities, and obligations are kept entirely separate from other properties within the client's portfolio.
What the SPV structure specifically achieves
The SPV structure ensures that liabilities and obligations tied to one property cannot spread to others. If a tenant initiates legal action, or a property is affected by an unexpected liability, the rest of the portfolio remains legally isolated. The mortgage loan is linked to the SPV and the property, not to the client personally – although the client typically provides a personal guarantee for the top financing tranche.
The structure also facilitates a straightforward divestment: in the event of a sale, shares in the company are typically transferred rather than the property itself, which significantly reduces transaction costs – particularly the Danish registration fee of 0.6% of the property's value. For a property valued at DKK 25 million, this represents a saving of DKK 150,000.
Finally, the SPV structure simplifies portfolio accounting. Each property has its own balance sheet, income statement, and audit trail, allowing for individual property performance analysis – an analytical framework that is far more informative than consolidated property accounts.
What an SPV typically contains
One property
The property deed registered in the SPV's name.
One mortgage loan
The loan is taken out by the SPV with the property as collateral.
Lease agreements
All lease agreements in the SPV's name.
Operating account
Independent bank account for inflows and outflows.
Insurances
Building insurance and operating liability covered by the SPV.
What the SPV structure costs
The SPV structure is not without cost. Each SPV incurs approximately DKK 5,000–8,000 annually in accounting and corporate legal administration, and establishment costs are DKK 8,000–15,000, including legal assistance. For a portfolio with 5 properties, this amounts to DKK 25,000–40,000 annually in structural costs.
This is a cost we consciously accept because the legal and operational benefits far outweigh the expense. The client who attempts to save costs by consolidating multiple properties into one company typically saves DKK 10,000–20,000 annually – and loses DKK 250,000 on the day a single property triggers a problem that cannot be isolated.
"The SPV structure is one of the few situations where 'a little too much legal architecture' is the right answer."
Read the full legal structure
How holding + SPV interact.