Not only could Copenhagen boast the largest harbor in the kingdom, it was also home to the largest naval base. This was no coincidence. Copenhagen was situated at the most frequented passage between the North Sea and the Baltic. In addition, the Baltic was a well-buoyed water, deep enough for even the largest ships.
The harbor was well protected and a central place for international trade. The big commercial houses, therefore, had chosen to place their businesses and storage houses there. Furthermore, those working or doing business in Copenhagen enjoyed the advantages of being close to the Crown and other important decision-makers. With the construction of the Armory complex in the first decades of the 1600´s, King Christian the 4th confirmed Copenhagen’s position as the main naval base of Denmark.

In addition to the above mentioned complex, complete with arsenal, storage houses and equipment harbor at Slotsholmen, in 1720 the military installations included an entire dockyard and workshop complex at Bremerholm, whose northern limit had been defined with the digging of Nyhavn in 1673. In 1706 a palace-like building for the Admiralty and General Commissariat had been erected. In 1734 an adjacent building was erected for the head of Holmen.
With the construction of the northern wing of the main storage house in 1737 and the addition of an identical southern wing in 1756, the installations were completed. A pavilion from whose roof the sea god Neptune could survey the Royal Naval Dockyard connected the two buildings. Bremerholm remained unaltered until the catastrophic fire of 1795.