PATRIZIA acquires six-property residential portfolio in Denmark
PATRIZIA Immobilien AG announced that it has acquired a residential portfolio of six properties in Denmark as part of a ‘buy and hold’ strategy and privatisation strategy. The seller and PATRIZIA have agreed to keep the purchase price confidential.
“This acquisition is the most recent example of our growing portfolio of assets under management (AUM) in Denmark and is a powerful endorsement of the strong local knowledge of our team,” says Rikke Lykke, Managing Director Nordic Region at PATRIZIA. “We continue to find the residential market in Copenhagen a compelling investment opportunity with further growth potential, as economic and population growth, low inflation and historically low mortgage rates continue to drive the existing supply and demand imbalance. These trends actually also apply to other larger cities in Denmark and it is therefore an obvious strategic move for PATRIZIA to expand its investment focus. Focusing on Copenhagen and other larger Danish cities enables us to offer more attractive investment opportunities to our investors,” says Rikke Lykke.
The portfolio comprises more than 23 000 square metres across its 251 residential units, with an average size of 93 square metres per unit. Five of the properties are located in Copenhagen; the sixth is located in Aarhus. Four of the five properties in the Danish capital are existing properties, while the fifth is a new development in Applebys Plads within the trendy Christianshavn area — a site lying across the harbour from the city’s iconic ‘black diamond’, the Danish Royal Library. The new development, scheduled for completion in 2018, will offer 33 residential units within its 4 347 square metres and will be situated close to the largest (116 units) of the portfolio’s existing properties. The five existing properties were completed between 1989 and 1997.
PATRIZIA places high value on local teams with in-depth local knowledge, strengthening our competence in the European real estate investment market, especially in Denmark. This latest transaction follows PATRIZIA’s recent acquisition of a 15 000-square-metre residential turn-key development on the Teglholmen peninsula in the Sydhavnen district of Copenhagen. PATRIZIA now has around EUR 1 billion of assets under management in Denmark.